BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  April 18, 2016


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 2866  
          (Gatto) - As Amended April 11, 2016


          SUBJECT:  Autonomous vehicles


          SUMMARY:  Requires the Department of Motor Vehicles (DMV) to  
          adopt regulations for the testing and operation of autonomous  
          vehicles without a driver in the vehicle and without a brake  
          pedal, accelerator pedal, or steering wheel.  Specifically, this  
          bill:  


          1)Authorizes the testing and operation of autonomous vehicles  
            without a driver in the vehicle and not equipped with a brake  
            pedal, accelerator pedal, and steering wheel, pursuant to  
            regulations adopted by DMV and subject to all other  
            requirements of existing law.


          2)Requires DMV to, by July 1, 2018, adopt regulations for the  
            testing and operation of autonomous vehicles without a driver  
            in the vehicle and autonomous vehicles not equipped with a  
            brake pedal, accelerator pedal, or steering wheel.


          3)Provides that the regulations adopted by DMV shall remain in  
            effect until four years after their effective date.









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          4)Requires DMV to report on the results of the autonomous  
            vehicles deployed under these regulations no later than 6  
            months after they are no longer in effect.


          EXISTING LAW:  


          1)Authorizes the operation of autonomous vehicles on public  
            roads for testing purposes under certain circumstances  
            specified in regulations adopted by the DMV.


          2)Requires DMV, by January 1, 2015, to adopt regulations setting  
            forth requirements for the application to operate autonomous  
            vehicles on public roads for non-testing purposes.


          3)Prohibits the operation of autonomous vehicles on public roads  
            for non-testing purposes unless the manufacturer of the  
            vehicles submits an application to DMV that is approved  
            pursuant to DMV regulations.


          4)Requires the application submitted to DMV for the operation of  
            autonomous vehicles on public roads for non-testing purposes  
            to include a certification from the manufacturer that the  
            vehicle's autonomous technology allows the operator to take  
            control through the use of the brake, the accelerator pedal,  
            or the steering wheel and that the vehicle's autonomous  
            technology meets and does not make inoperative any Federal  
            Motor Vehicle Safety Standards (FMVSS) and all other  
            applicable safety standards and performance requirements  
            established by state and federal law.


          5)Requires DMV to approve an application submitted by a  
            manufacturer for the operation of autonomous vehicles for  








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            non-testing purposes if DMV finds that the applicant has  
            submitted all information and completed testing necessary to  
            satisfy DMV that the autonomous vehicles are safe to operate  
            on public roads and the applicant has complied with all  
            requirements specified in DMV regulations.


          6)Authorizes DMV to impose additional requirements it deems  
            necessary to ensure the safe operation of autonomous vehicles  
            if those vehicles are capable of operating without the  
            presence of a driver inside the vehicle, including the  
            presence of a driver in the driver's seat of the vehicle, if  
            DMV determines that such a requirement is necessary to ensure  
            the safe operation of those vehicles on public roads.


          7)Requires DMV to notify the Legislature of the receipt and  
            approval of an application from a manufacturer seeking to  
            operate autonomous vehicles capable of operating without the  
            presence of a driver inside the vehicle on public roads for  
            non-testing purposes.


          FISCAL EFFECT:  Unknown


          COMMENTS:  In response to arguments for the traffic safety  
          benefits of increasingly automated vehicle technology, the  
          Legislature passed and the Governor signed legislation requiring  
          DMV to adopt regulations for the operation of autonomous  
          vehicles on California's public roads in 2012 [SB 1298  
          (Padilla), Chapter 570, Statutes of 2012].  The rollout of DMV's  
          regulations was separated into two stages:  regulations for  
          insurance requirements for the purposes of testing autonomous  
          vehicles and regulations for the full deployment of autonomous  
          vehicles on California roads for non-testing purposes.  Both  
          sets of regulations were required to be adopted by January 1,  
          2015.  DMV adopted testing regulations on May 19, 2014, and has  
          yet to adopt regulations for the deployment of autonomous  








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          vehicles for non-testing purposes.  DMV is reluctant to make a  
          final regulatory action until it receives more input from the  
          public and stakeholders.


          The original legislation directing DMV to adopt these  
          regulations includes several requirements for the operation of  
          autonomous vehicles, including the presence of an operator  
          inside the vehicle and the ability of the operator to take over  
          control of the vehicle from the autonomous technology through  
          the use of the brake, the accelerator pedal, or the steering  
          wheel.  Existing law also allows DMV to include any other  
          testing, equipment, and performance standards that DMV concludes  
          are necessary to ensure the safe operation of autonomous  
          vehicles, with or without the presence of a driver in the  
          vehicle.  Early drafts of the DMV regulations for the operation  
          of autonomous vehicles for both testing and non-testing purposes  
          exclude the use of vehicles that are capable of operation  
          without the presence of an operator inside the vehicle.


          The author raises concerns with the current proposed contents of  
          DMV's upcoming regulatory package, relating specifically to the  
          prohibition on autonomous vehicles without a licensed driver in  
          the vehicle, and without the specified technical attributes.   
          The author believes that, by not allowing these types of  
          vehicles to be tested or operated in California, DMV risks  
          stifling technological innovation in the state and encouraging  
          manufacturers advancing this technology to relocate to other  
          states with less restrictive autonomous vehicle standards.  Some  
          estimates suggest that fatalities from motor vehicle accidents  
          could fall by 90% and save $190 billion once autonomous vehicles  
          become prevalent in the state.


          AB 2866 would authorize the operation of autonomous vehicles  
          without a driver inside the vehicle and not equipped with a  
          brake pedal, accelerator pedal, or steering wheel, pursuant to  
          regulations that this bill would require DMV to adopt.  Those  








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          regulations would be adopted by July 1, 2018 and would remain in  
          effect for 4 years, after which DMV would report on the results  
          of the testing and operation of these autonomous vehicles to the  
          Legislature.


          By directing DMV to include these types of autonomous vehicles  
          in its regulatory framework, the author intends to keep the  
          development of technology in California, and ensure access to  
          autonomous vehicles for all Californians, particularly those who  
          are unable to drive conventional motor vehicles.  The author  
          believes AB 2866 will enable the state to reap the economic and  
          public health benefits of autonomous vehicles, which "have the  
          potential to save Californians' lives, time and money."


          DMV has undertaken a careful, thorough approach to adopting  
          autonomous vehicle regulations since SB 1298 was signed by the  
          Governor in 2012.  The department has conducted numerous public  
          hearings and workshops to receive input from manufacturers,  
          technology companies, academics, privacy advocates, the disabled  
          community, consumer groups, and other stakeholders.  The  
          approach that has been developed is incremental but has a heavy  
          focus on ensuring that the vehicles that are operated on  
          California's roads are as safe as possible.  Although DMV has  
          yet to initiate the formal regulatory process for the operation  
          of autonomous vehicles for non-testing purposes, it has used the  
          time since its deadline to continue to engage stakeholders to  
          work through the issues associated with creating a regulatory  
          framework for a still-emerging technology and that has no analog  
          in other states or at the federal level.  As the department has  
          articulated in the past, the technology is still ahead of the  
          law in this area.


          Out of concern for losing out on technological innovation and  
          the corresponding economic and public health benefits, AB 2866  
          would force DMV to make larger strides in the development of its  
          regulations by removing the department's discretion to make  








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          incremental steps towards approving technologies that do not  
          require the oversight of a licensed driver and physical override  
          mechanisms in the vehicle.  This concern is likely a valid one,  
          as some major manufacturers of autonomous vehicles are already  
          currently testing in other states.


          Equally valid a concern is that the technology required for the  
          operation of the vehicles specified in this bill may not yet  
          exist at a level that could be widely deployed in a safe manner  
          in California if new regulations were to be adopted.   
          Manufacturers testing autonomous vehicles in California are  
          required to report to DMV when the autonomous technology  
          disengages due to technological failure or other conditions.   
          DMV has received hundreds of disengagement reports stemming from  
          a variety of conditions.  For example, autonomous technology has  
          yet to be proven infallible in poor weather conditions or when  
          driving on the state's dilapidated road infrastructure.


          While questions remain on the negative impact of overly  
          restrictive regulations or the status of the technology  
          generally, this bill compels DMV to keep pace with the rate of  
          technological advancement at the level that some manufacturers  
          are arguing is necessary to keep the state competitive in  
          attracting innovation.  Previous versions of this bill requiring  
          DMV to conduct a pilot with autonomous vehicles without a driver  
          in the vehicle would have removed the operation of those  
          vehicles from the existing safety, testing, and regulatory  
          framework established by 


          SB 1298.  The current version of AB 2866 would merely require  
          DMV to adopt additional regulations under that scheme, leaving  
          that framework intact and in effect, including the requirement  
          that all vehicles comply with all FMVSS.  To the extent current  
          FMVSS require the physical controls specified in this bill in  
          most vehicles, autonomous or otherwise, and existing statute  
          requires vehicles comport to those standards, these vehicles may  








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          not be able to operate in California until they are in  
          compliance with federal requirements or receive a federal  
          exemption.  However, by conforming the new regulations with  
          existing statute, AB 2866 minimizes the impact of directing DMV  
          to initiate a new regulatory process.  After the regulations are  
          no longer in effect and the department submits its report, the  
          Legislature will have additional information with which to make  
          a decision on the future of autonomous vehicles in the state.
          The author may wish to consider future amendments authorizing  
          DMV to use its existing regulatory process to the extent  
          possible as a basis for its future regulations, in order to  
          further expedite the process and encourage consistency between  
          all autonomous vehicle rules.


          Federal developments:  In January 2016, United States Department  
          of Transportation Secretary Anthony Foxx announced President  
          Obama's Fiscal Year 2017 budget proposal to allocate nearly $4  
          billion over ten years towards accelerating the development of  
          autonomous vehicle technology through real-world pilot projects.  
           Additionally, Secretary Foxx announced that the National  
          Highway Traffic Safety Administration (NHTSA) will, within six  
          months, both consult with industry and other stakeholders to  
          develop guidance on the safe deployment and operation of  
          autonomous vehicles, and consult with state partners, the  
          American Association of Motor Vehicle Administrators, and other  
          stakeholders to develop a model state policy on automated  
          vehicles that offers a path to consistent national policy.


          According to DMV, the department has been in constant  
          communication with NHTSA on the topic of its autonomous vehicle  
          regulations and will likely be able to easily comport its  
          regulatory package to NHTSA's model state policy.


          Related legislation:  AB 1592 (Bonilla) authorizes the Contra  
          Costa Transportation Authority to conduct a pilot project for  
          the testing of autonomous vehicles under specific conditions.  








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          AB 1592 passed out of this committee on April 4, 2016 with a  
          16-0 vote, and passed off the Assembly Floor with a 75-0 vote.   
          AB 1592 is currently awaiting assignment in the Senate Rules  
          Committee.
          AB 2682 (Chang) requires DMV, upon the development of a model  
          state policy on autonomous vehicles by NHTSA, to hold public  
          hearings on the model policy and consider, to the extent  
          authorized by other law, conforming department regulations with  
          that policy.  AB 2682 passed out of this committee on April 4,  
          2016, with a 16-0 vote, and is currently awaiting a hearing in  
          the Assembly Appropriations Committee.


          Previous legislation:  SB 1298 (Padilla), Chapter 570, Statutes  
          of 2012, established conditions for the operation of autonomous  
          vehicles upon public roadways.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file




          Opposition


          Consumer Watchdog










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          Analysis Prepared by:Justin Behrens / TRANS. / (916) 319-2093