SF4618

Purpose

The bill creates a new regulatory framework in Minnesota to authorize and oversee the operation of autonomous vehicles (AVs) on public roads, including a system for operating autonomous vehicles within on-demand networks. It adds formal definitions, sets licensing and permitting requirements, outlines safety and compliance rules, and establishes duties for operators, manufacturers, and regulators.

Key Definitions and Concepts

• Authorized operator: the person allowed by the public safety commissioner to operate an autonomous vehicle with the automated driving system engaged on public roads.
• Automated driving system (ADS): hardware and software that can perform the entire dynamic driving task on a sustained basis.
• Autonomous vehicle (AV): a motor vehicle equipped with an ADS designed to function as a level 4 or 5 system under SAE J3016.
• Dynamic driving task (DDT): the real-time tasks needed to operate a vehicle, including steering, acceleration, monitoring the environment, planning, and signaling.
• Dynamic driving task fallback: the driver or ADS’s move to risk-minimizing operation when the DDT can no longer be performed.
• Minimal risk condition (MRC): a safe state a vehicle can enter when it cannot complete the trip.
• First responder interaction plan: a plan describing how autonomous vehicles will interact safely with first responders.
• Human driver: a person with a valid license who controls part or all of the DDT.
• On-demand autonomous vehicle network: a transportation service network that uses software to dispatch AVs for transporting passengers or goods for compensation.
• Operational design domain (ODD): the specific environmental, geographical, time, and traffic conditions under which the ADS is designed to function.
• Request to intervene: a notification by the AV system asking a human driver to begin or resume part or all of the DDT.
• SAE J3016: the SAE International standard defining driving automation levels (including Level 4 and 5).
• Teleoperation: a natural person remotely performing part or all of the DDT via a communications system.

Major Provisions (What the bill does)

• Operating authorization and permitting

  • A person may not operate an AV with the ADS engaged on Minnesota public roads unless authorized and compliant with the new sections (169.251–169.253).
  • An AV must have a current authorization from the commissioner of public safety; an AV permit can be issued to an operator, and initial authorizations under the permit process become effective on July 1, 2027.
  • The operator is responsible for ensuring the AV and ADS comply with all applicable laws and for keeping sensors and systems free of interference.

• Safety, compliance, and vehicle standards

  • AVs must operate in compliance with traffic laws at all times, unless an exemption is granted.
  • The ADS must not have any functionality that violates traffic laws.
  • There is a requirement for independent safety verification to show the ADS can perform the entire DDT in conditions similar to those found in Minnesota (urban and nonurban, including snow, ice, and low visibility) before authorization.
  • Federal motor vehicle safety standards and manufacturer certifications must be respected; labels and federal requirements must be displayed when applicable.

• Operational requirements for AVs

  • The operator must demonstrate the AV’s ability to perform the entire DDT in the proposed ODD, including challenging conditions, verified by an independent third party.
  • The authorized operator must ensure the ADS and sensor systems are functioning correctly at all times.
  • For AVs without a human driver, the vehicle must achieve an MRC if the ADS cannot perform the DDT; for AVs with a human driver, there must be a prompt to intervene and a timely response.

• Driver licensure and liability

  • In collisions involving an AV without a human driver, the ADS is treated as the driver for liability purposes.
  • In collisions where the ADS is engaged, liability is shared jointly and severally among the authorized operator, the AV manufacturer, the ADS manufacturer, and the on-demand network if applicable.
  • Violations by the AV are attributed to the authorized operator, with the operator responsible for penalties or violations.

• Reporting, oversight, and enforcement

  • Authorized operators must report collisions and other safety incidents to the commissioner within 24 hours, plus quarterly summaries of incidents (accidents, near misses, disengagements, interventions, mapping errors, etc.).
  • The public safety commissioner must maintain a public website with incident data for each AV.
  • The commissioner may suspend, revoke, or rescind AV authorization for safety or legal violations, and reinstatement may require third-party verification of improved capabilities.

• On-demand AV networks (robotaxi-like services)

  • Authorization is required to operate an on-demand AV network.
  • Network operators must maintain an up-to-date list of AVs and ensure each vehicle is properly authorized; vehicles must comply with all AV rules at all times and be removed from service if they stop complying.
  • Vehicles on an on-demand network cannot accept traditional street hail; they may park unlawfully on a public road to pick up or drop off a passenger only if it is safe and for the minimum time necessary.
  • Riders must be shown the fare method in advance, receive an electronic receipt after a ride, and AVs must display clear, distinctive signage while active on the network.
  • Vehicles must undergo pre-service inspections and maintain inspection records for three years.

• Local considerations, equity, and accessibility

  • Before authorizing an on-demand network, the commissioner must require a traffic study and may consider local input, traffic impact, public transit impact, and public safety.
  • Networks must address accessibility and equity, serving neighborhoods outside high-profit corridors, coordinating with existing transit, avoiding discrimination by race/ethnicity/economics, and providing accessible vehicles or paying a fee if accessible vehicles cannot be provided.
  • Plans must address riders without smartphones and require accessible vehicle options.

• Fees, funding, and infrastructure

  • Operators may owe worker impact fees per AV in the network, with funds directed to workforce development and dislocated worker programs.
  • If local governments need infrastructure to support AV operations, the bill contemplates cost-sharing and consideration of infrastructure costs.

• Local government involvement and possible changes

  • Local governments can review traffic studies and request modifications to proposed networks to address local conditions and safety.
  • The commissioner may require modifications to proposed services to address local concerns and public safety impacts.

Significant Changes to Existing Law

• Establishes a comprehensive regulatory regime specific to autonomous vehicles (169.251–169.253) and autonomous vehicle networks (169.255), which did not exist before.
• Creates formal definitions for ADS, DDT, ODD, MRC, authorized operators, first responder plans, teleoperation, and related terms, integrating them into state law.
• Requires a formal annual application and permit process for AV operation on public roads, with a later effective date (July 1, 2027) for authorizations under the new permit system.
• imposes new safety verification requirements, including independent third-party on-street testing and verification in challenging conditions.
• Adds a new liability framework that treats AVs without drivers as the driver for legal purposes and assigns joint and several liability to operators, manufacturers, and network providers.
• Adds detailed reporting requirements for incidents and crime, including a public data portal for incident summaries.
• Regulates on-demand AV networks with requirements for signage, fare transparency, rider receipts, and non-discrimination for equity and accessibility.
• Includes provisions for worker impact fees and potential infrastructure cost responsibilities related to AV operations.
• Strengthens enforcement powers of the public safety department and authorizes broader inspection rights for state agencies.

Implementation Timeline and Practical Implications

• Initial AV authorization under the new framework becomes effective no earlier than July 1, 2027.
• Operators and networks must pursue compliance with safety verification, first responder planning, and equity/accessibility requirements to obtain and maintain authorization.
• The state plans for ongoing data reporting, public transparency of incidents, and potential local government input on deployments.

Potential Impacts

• For residents: clearer rules and safety standards for AVs, more visible reporting on incidents, and emphasis on accessibility and equitable service.
• For companies: new licensing, testing, and reporting obligations; potential costs for safety verification, inspections, signage, and workforce development fees.
• For public safety and local governments: greater involvement in deployment decisions, traffic studies, and safety oversight.

Relevant Terms - Authorized operator - Automated driving system (ADS) - Autonomous vehicle (AV) - Dynamic driving task (DDT) - Dynamic driving task fallback - Minimal risk condition (MRC) - First responder interaction plan - Human driver - On-demand autonomous vehicle network - Operational design domain (ODD) - Request to intervene - SAE J3016 - Teleoperation - Commissioner of public safety - Vehicle permit and authorization - Independent safety verification - Compliance with traffic laws - Liability and joint/several liability - Collisions involving AVs - Incident reporting and public data portal - Equity and accessibility requirements - Signage and branding requirements for AVs - Worker impact fees - Traffic study and local government input - Non-street-hail operation prohibition for AVs on networks - Insurance/financial responsibility for AVs