Purpose

Clarify how autonomous vehicles and automated driving systems can operate on Minnesota roads. The bill creates definitions and a regulatory framework to regulate automated driving systems (ADS) and autonomous vehicles (AVs), establish safety requirements, require financial responsibility, and set rules for on‑demand AV networks and commercial AV operations. It also seeks to preempt local rules and predefine how authorities manage incidents, inspections, and accessibility.

Key Definitions and Concepts (as added by the bill)

• Automated driving system: The hardware and software that can perform the entire dynamic driving task on a sustained basis.
• Autonomous vehicle: A motor vehicle equipped with an ADS designed to function as a level 4 or 5 system (SAE J3016).
• Dynamic driving task: Real-time tasks to operate a vehicle, including steering, acceleration/deceleration, environment monitoring, decision making, and signaling—but not trip planning or destination selection.
• Dynamic driving task fallback: The move to a minimal risk condition either by a human driver or by the ADS following a failure or exit from the operating domain.
• First responder interaction plan: Procedures for how first responders should interact with an AV, including communication with support staff, safe removal/towing steps, recognition of autonomous mode, and safety-related information.
• Minimal risk condition: A safe state the vehicle or driver can reach when the dynamic driving task cannot be completed.
• Ondemand autonomous vehicle network: A software-enabled network that dispatches autonomous vehicles for transport of passengers or goods.
• Operational design domain (ODD): The specific operating conditions (environment, geography, time of day, traffic characteristics) under which the ADS is designed to function.
• SAE J3016: The SAE International taxonomy and definitions for driving automation (April 2021 revision).
• Human driver: A licensed person who controls all or part of the dynamic driving task.
• First responder: Emergency responders who may need to interact with an AV after an incident.

Main Provisions and What the Bill Seeks to Accomplish

• Autonomous vehicle and ADS definitions added (Sections 1–4, 10)

  • Establishes clear terms for what counts as an automated driving system and an autonomous vehicle, and defines the dynamic driving task and its fallback.

• Autonomous vehicle requirements and operation on public roads (Section 11)

  • A vehicle cannot operate with ADS engaged unless it meets specified conditions.
  • If the ADS fails and cannot perform the dynamic driving task within its operational design domain, the vehicle must achieve a minimal risk condition.
  • The vehicle must comply with Minnesota traffic and safety laws unless an exemption is granted.
  • Federal labeling requirements, when applicable, and proof of financial responsibility are required.

• Operation without a human driver (Section 11, Subdivision 2)

  • Authorization from the commissioner is required to operate AVs without a human driver.
  • Applicants must provide: entity details, vehicle information, and a certification that each AV complies with requirements and has a first responder interaction plan.
  • The commissioner must approve or deny within 30 days; approvals last until suspended, revoked, or canceled.
  • Updated information must be provided within 30 days of material changes; the commissioner can suspend or cancel for noncompliance.
  • Human drivers may still operate AVs; nothing prevents a human taking control when present.

• Driver licensure concept for AVs (Section 11, Subdivision 4)

  • When an ADS is engaged and no human is present, the ADS is treated as the “driver” for legal purposes and may be considered licensed to operate if authorized.

• Collisions involving AVs (Section 12)

  • Different reporting and scene handling rules apply depending on whether a human driver or an AV without a human driver is involved.

• Financial responsibility/insurance (Section 13)

  • AV owners must maintain proof of financial responsibility at minimums comparable to motor vehicle requirements.
  • For AVs with the ADS engaged, a minimum of $1,000,000 combined single limit for third-party liability is required.
  • PIP, uninsured motorist benefits, and coordination between insurance policies may be used to satisfy these requirements.

• On-demand AV networks (Section 14)

  • May transport passengers or goods if in compliance with the section’s requirements.
  • Must not accept traditional street hail and must disclose fare details before rides.
  • Requires electronic receipts listing origin, destination, time, distance, and fare after rides.
  • Vehicles must display distinctive signage at all times while active.
  • Vehicles must pass inspections (initial and annual) with records kept for three years.
  • Must provide wheelchair-accessible options where reasonably available; otherwise, direct users to accessible providers.
  • Not considered a common carrier.

• Commercial AV operation (Section 15)

  • AVs that are also commercial motor vehicles follow CMV rules, with adjustments where those rules rely on human-driver-specific provisions.
  • ADS can be treated as a mirror-like device for width measurement in certain CMV contexts.

• AV equipment standards (Section 16)

  • AVs designed to operate exclusively without a human driver may be exempt from certain traditional motor vehicle equipment laws that assume a human driver.

• Controlling authority and local preemption (Section 17)

  • State law governs AVs, ADS, and on-demand networks; local ordinances conflicting with state law are preempted.
  • Local entities cannot impose special licenses, permits, taxes, or fees specific to AV/on-demand networks beyond state rules.
  • Airports may impose reasonable facility-related fees but must not treat AV networks differently from other ride services; airports may designate staging areas for AV pickups.

• Summary impact

  • Creates a comprehensive state framework to regulate ADS/AVs, including the ability to operate without a human driver only with explicit state authorization and safety plans.
  • Establishes financial responsibility standards and incident reporting requirements.
  • Sets rules for on-demand AV networks, including fare transparency, accessibility considerations, and inspections.
  • Preempts local control in favor of uniform state regulation, with limited airport-specific allowances.

Notable Changes to Existing Law

• Introduction of new statutory definitions and sections to govern ADS/AVs (169.011 expansions; new sections 169.251–169.257).
• Shifts liability/driver concept: ADS may be the driver for legal purposes when no human is present.
• New requirements for first responder interaction plans and minimal risk conditions.
• Mandates financial responsibility minimums specifically tied to AVs.
• Creates an on-demand AV network framework with consumer disclosure, signage, and accessibility obligations.
• Establishes preemption of local ordinances and licensing regimes for AVs and on-demand networks, with limited airport-related authority.
• Sets equipment standards and exemptions for AVs designed to operate without a human driver.

Potential Impacts and Who Is Affected

• AV owners/operators: Must obtain state authorization for driverless operation, maintain financial responsibility, and comply with safety and reporting requirements.
• AV network operators (on-demand): Face new commercial framework, fare transparency, accessibility obligations, and inspection requirements; not treated as common carriers.
• Local governments: Preempted from imposing AV-specific licensing or special taxes/fees; standard traffic enforcement remains.
• Public safety and first responders: Must use the first responder interaction plan to communicate with AVs and safely manage incidents.
• General public: Increased safety and accountability measures; clearer disclosure of ride costs and accessibility options.

Relevant Terms

• Automated driving system
• Autonomous vehicle
• Dynamic driving task
• Dynamic driving task fallback
• First responder interaction plan
• Minimal risk condition
• Ondemand autonomous vehicle network
• Operational design domain
• SAE J3016
• Human driver
• Financial responsibility
• Minimum liability limit ($1,000,000 CSL)
• Not a common carrier
• Vehicle inspections
• Signage/emblem requirement
• Wheelchair accessibility
• Preemption of local ordinances
• Airport-related regulatory allowances

Relevant Terms - Automated driving system - Autonomous vehicle - Dynamic driving task - Minimal risk condition - First responder interaction plan - Ondemand autonomous vehicle network - Operational design domain - SAE J3016 - Human driver - Financial responsibility - Insurance minimums - Not a common carrier - Vehicle inspections - Accessibility (wheelchair) - Preemption - Airport fees and staging areas