HF4521

Purpose

• Provide a framework for authorizing and regulating the operation of autonomous vehicles (AVs) and on-demand AV networks on Minnesota public roads.
• Establish definitions, safety requirements, testing, and oversight to protect public safety while enabling vehicle automation and ride-services using AVs.

Key definitions introduced

• Authorized operator: the person allowed by the state to operate an autonomous vehicle on public roads with the automated driving system engaged.
• Automated driving system (ADS): the hardware and software that can perform the entire dynamic driving task on an ongoing basis.
• Autonomous vehicle: a motor vehicle with an ADS designed to function as a level 4 or 5 system (SAE J3016).
• Dynamic driving task (DDT): real-time driving functions like steering, acceleration, environment monitoring, planning, and signaling; excludes trip planning and destination choices.
• Dynamic driving task fallback (DDT fallback): what happens when the ADS or driver must take control to reduce crash risk.
• Minimal risk condition (MRC): a safe, low-risk state a vehicle or driver reaches when the DDT cannot be completed.
• First responder interaction plan: procedures to help first responders safely interact with autonomous vehicles.
• On-demand autonomous vehicle network (ondemand network): a software-based transportation service network that uses AVs to move passengers or goods for hire.
• Operational design domain (ODD): the specific conditions under which the ADS is designed to function (environment, geography, time of day, traffic, etc.).
• Request to intervene: a signal from an ADS telling a human driver to begin or resume the DDT.
• Teleoperation: a human operator remotely performing all or part of the DDT.
• SAE J3016: reference to the SAE International standard for driving automation (April 2021 revision).
• Human driver: a licensed person who controls all or part of the DDT when present.
• Human driver licensure/driver liability concepts: how violations and collision responsibility are assigned when an AV is involved.

What the bill would authorize and regulate

• Authorized operation of autonomous vehicles on Minnesota roads with the ADS engaged, under state permit and rules.
• Creation of a permitting system administered by the Commissioner of Public Safety (with DPS authorization effective July 1, 2027 for new AV permits).
• Establishment of clear ADS and AV definitions to govern how these vehicles are operated and who is responsible.

Main provisions and aims

• Operating requirements and permits (169.251 to 169.253):
  • Operators must obtain an AV permit from the DPS; initial approvals occur, but actual authorizations begin on July 1, 2027.
  • ADS must comply with all traffic and safety laws; no ADS functionality may violate laws.
  • The operator is responsible for keeping the ADS and sensors in working order and free of interference.
  • Federal requirements: vehicles must bear manufacturer labels certifying compliance with federal safety standards if applicable.
• Autonomous vehicle permit process (169.252):
  • Annual application to public safety, with detailed information on each AV and its operational design domain.
  • Fees apply to each AV under a permit; annual renewals required.
  • Reporting requirements, financial responsibility, and proof of insurance appropriate for AV use (with higher minimums for AVs without a human driver).
  • First responder interaction plan required, plus guidance due by December 31, 2026 on minimum content for such plans.
  • Independent safety verification: applicants must show the ADS can perform the entire DDT in states and conditions similar to Minnesota (urban and nonurban, including snow, ice, low visibility). Must be verified by an independent third party and can cover multiple vehicles with identical ADSs.
  • Permit scope restricts some vehicle classes; only passenger vehicles are eligible under the permit framework.
  • Enforcement and investigations: DPS and DOT staff can inspect operator records and data; the DPS can suspend or revoke permits for safety violations or criminal behavior in traffic.
• Liability, collisions, and driver licensure (169.253):
  • When a human driver is not present, the ADS is treated as the vehicle’s driver for legal purposes and is deemed to satisfy driver acts electronically.
  • Remote teleoperation generally not allowed on public roads unless approved as part of a first responder plan.
  • If a collision occurs, parties responsible include the authorized operator, vehicle manufacturer, ADS manufacturer, and (if part of a network) the ondemand network operator.
  • In collisions, the ADS or operator must stop and assist per applicable collision regulations; driver licensure and violation rules apply as specified.
  • Violations by an AV are attributed to the authorized operator; an AV operating multiple vehicles under one authorization is treated as one driver for violation tally purposes.
• Safety, testing, and oversight:
  • Independent safety verification is required for on-road testing, with conditions for additional training if on-road experience is insufficient.
  • On-road testing must occur under similar conditions to Minnesota’s environment.
  • A first responder interaction plan is required and must include: capabilities for safe interaction, communication with responders, safe removal or towing of the AV, and signs of autonomous mode.
  • The state may require additional rules and guidance to implement AV safety measures.

On-demand AV networks (Fleets) and operations

• Authorization to operate ondemand AV networks (169.255):
  • Networks must obtain DPS authorization to transport passengers or goods.
  • Networks must ensure every AV in the network complies with AV statutes and must remove any vehicle that fails to comply.
  • No traditional street hail accepted for service; dynamic ride service rules apply, including fare disclosure before rides and electronic receipts after rides.
  • Distinctive signage on active AVs during operation to identify vehicles in the network.
  • Pre-service and ongoing vehicle inspections; documentation retained for three years.
  • Local government input is considered; traffic impact and public safety considerations must be reviewed before authorizing a network.
  • Equity, accessibility, and transit integration requirements: networks must address accessibility and equity concerns, serve neighborhoods outside high-profit corridors, coordinate with public transit, and provide accessible vehicles for riders with disabilities. If accessible vehicles cannot be provided, a per-vehicle fee may be charged.
  • Mandatory traffic studies and local considerations: cost and scope of traffic studies are defined; municipalities in the proposed area can comment on studies and requests for changes can be considered.
  • Modifications and conditions: the commissioner can require adjustments to proposed service to address local and traffic concerns.
  • Suspension and removal: an AV network can be suspended for at least six months for criminal traffic violations or causing a serious collision; reinstatement requires third-party verification that capabilities have improved.
  • Worker impact fees: networks must pay annual fees per AV; funds go to workforce development programs.
  • Infrastructure costs: when local governments must provide extra infrastructure to support AV operations, the traffic study must support the need.

Reporting, transparency, and enforcement

• Incident reporting: AV operators must report serious incidents to the DPS within 24 hours and provide quarterly summaries of various incidents (accidents, near misses, disengagements, safety incidents, etc.).
• Public safety portal: the DPS must maintain a public site with incident summaries for each AV, updated within five business days of data receipt.
• Inspect and enforce: DPS and other agencies can inspect operator records and AV data for safety reviews, audits, and investigations; DPS can suspend, revoke, or rescind authorizations if safety is compromised.

Local and accessibility considerations

• Equity and accessibility plans required for ondemand AV networks.
• Networks must serve non-smartphone users and households in various neighborhoods, and provide accessible vehicle options.
• Local governments can weigh in on traffic impact, transit effects, paratransit, and safety considerations.

Implementation timeline and status

• Initial applications can be reviewed now, but authorizations for operating autonomous vehicles without a human driver are slated to begin on July 1, 2027, with safety and testing verifications required beforehand.

Significant changes to existing law

• Introduces a comprehensive regulatory framework for autonomous vehicles and on-demand AV networks, including:
  • New permit-based operating requirements for AVs on public roads.
  • Formal definitions for ADS, autonomous vehicles, ODDS, DDT, DDT fallback, MRC, first responder plans, teleoperation, and related terms.
  • Mandatory independent safety verification and on-road testing in diverse conditions.
  • A new accountability structure for collisions and violations involving AVs, including joint liability among operators, manufacturers, and network operators.
  • Specific provisions for on-demand AV networks, including service model rules, fare disclosure, signage, inspections, local input, equity and accessibility requirements, and worker impact fees.
  • Financial responsibility and insurance requirements, including higher minimums for AVs without a human driver.
  • Public reporting and data transparency through a state portal.

Relevant Terms

• Authorized operator
• Automated driving system (ADS)
• Autonomous vehicle
• Dynamic driving task (DDT)
• Dynamic driving task fallback
• Minimal risk condition (MRC)
• First responder interaction plan
• Operational design domain (ODD)
• Request to intervene
• Teleoperation
• SAE J3016
• On-demand autonomous vehicle network
• Public safety permit (169.252)
• Independent safety verification
• Equity accessibility transit
• Signage/emblem for AVs
• Traffic study
• Vehicle inspection and maintenance
• Financial responsibility/insurance
• Vehicle fleet (ondemand AV networks)
• Collision liability and reporting

Relevant Terms (plain list) - Autonomous vehicle fleet - On-demand ride network - Dynamic driving task - Minimal risk condition - Automated driving system - Operational design domain - First responder plan - Teleoperation - SAE J3016 - Authorized operator - Traffic study - Public safety permit - Independent safety verification - Equity and accessibility - Signage and receipts - Worker impact fee