Purpose

This bill would study and shape how commercial autonomous vehicle operations could work in Minnesota. It creates an advisory board to analyze the potential effects on workers, businesses, safety, taxes, and transportation, and it would establish a permit process before any commercial autonomous vehicles can operate in the state. The bill also requires safety rules, public input, and a final decision-supported recommendation by a set deadline.

Key Definitions

• Autonomous vehicle: a vehicle with technology that meets Level 3, 4, or 5 driving automation per SAE J3016 (as updated in April 2021).
• Commercial autonomous vehicle operations: using autonomous vehicles for business purposes, including transporting passengers or goods.
• Advisory board: a group called the Commercial Autonomous Vehicle Operations Labor and Small Business Impact Advisory Board that studies and advises on permit decisions.
• Human safety operator: a properly licensed person who sits in the driver seat and can monitor and take control of the vehicle if needed.
• Transportation network company: a company involved in arranging rides or transportation services (as defined elsewhere in law).

Main Provisions and What They Do

• Prohibition on operations until study and permit process

  • Commercial autonomous vehicle operations are prohibited in Minnesota until the advisory board completes its study and the commissioner creates a permit process.
  • No company may operate autonomous vehicles for commercial purposes without a permit from the commissioner.

• Permit process

  • The commissioner must create a permit process based on the advisory board’s study and recommendations.
  • Each permit applicant must receive an individual evaluation conducted by the advisory board.

• Advisory board

  • The board is made up of state officials (like the commissioners of Transportation, Public Safety, Commerce, and the Attorney General), legislators, and representatives from various groups (driver workers, rideshare drivers, disability community, municipalities, consumer rights, and an autonomous vehicle company).
  • The commissioners or their designees act as co-chairs.
  • The Department of Transportation provides staff and technical support.

• Advisory board study requirements

  • An independent research institution with rideshare labor economics expertise must conduct a comprehensive review of commercial autonomous vehicle operations.
  • The study will look at many factors, including:
  • Short- and long-term effects on rideshare and commercial drivers, including job displacement and reemployment options.
  • Impacts on transportation network company drivers and related businesses.
  • Minnesota’s finances, tax revenue changes, accessibility for people with disabilities, and impacts on liability in crashes.
  • Algorithmic management (including required public notification for any changes to the algorithm that could affect interactions with other vehicles or pedestrians).
  • Impacts on cities and state infrastructure, and congestion.
  • Development of a separate certification process not controlled by the AV industry.
  • Potential interference with first responders.
  • The ability of autonomous vehicles to navigate city streets.
  • The board must hold public hearings under the Open Meeting Law and collect public comment for at least 30 days after preliminary findings.
  • By February 1, 2027, the board must publish a final report with recommendations on whether commercial autonomous vehicle operations should be allowed in Minnesota and what the permit requirements should be.

• Permit applicant evaluation (region-specific)

  • For each region where an applicant seeks to operate, the board must assess:
  • Economic impacts on rideshare and commercial drivers.
  • Reemployment pathways for displaced workers.
  • Impacts on businesses serving rideshare and commercial drivers.
  • Tax revenue and broader financial impacts.
  • Accessibility supports for people with disabilities.
  • Liability in crashes.
  • Algorithmic management and public notification requirements for algorithm changes.
  • Financial and infrastructure impacts.
  • Potential interference with first responders.
  • How well autonomous vehicles can navigate and the potential for congestion.
  • The board then provides a nonbinding recommendation to the commissioner on whether to approve the application.

• Human safety operator requirement

  • Any approved permit must require that an autonomous vehicle cannot transport passengers or goods unless a human safety operator is present and able to monitor and take over if needed (including the ability to stop or take manual control).
  • Autonomous vehicles and safety operators must meet all applicable local, state, and federal requirements.

• Sunset and severability

  • If parts of the law are found invalid, the rest remains in effect. The study and report timeline is set to conclude by February 1, 2027 (or later if the report is released after that date).

Significant Changes to Existing Law

• Creates a formal, state-led process to study and regulate commercial autonomous vehicle operations in Minnesota before any operation is allowed.
• Establishes a broad, multi-stakeholder advisory board with explicit regional, labor, business, disability, and consumer representation.
• Introduces a mandatory permit system with detailed, region-specific evaluation criteria for applicants.
• Requires a mandatory human safety operator in all autonomous vehicle operations approved under the permit.
• Mandates public hearings and a comprehensive final report to guide future policy on whether and how commercial autonomous vehicles should operate in Minnesota.
• Adds requirements related to algorithm transparency (public notification of algorithm changes) and accessibility for people with disabilities.
• Sets a defined expiration/ review point for the advisory process tied to the final report.

Potential Impacts and Considerations

• Worker protection and transition: attention to rideshare and commercial drivers, potential reemployment pathways, and displacement concerns.
• Local government and infrastructure: evaluation of congestion and city-level impacts, with regional permit considerations.
• Public safety and transparency: emphasis on a human safety operator and algorithm transparency.
• Economic and tax effects: analysis of potential changes to tax revenue and business ecosystems serving drivers and fleets.
• Public input: formal opportunities for hearings and comment before decisions.

Relevant Terms - autonomous vehicle - Level 3, Level 4, Level 5 (SAE J3016) - commercial autonomous vehicle operations - advisory board - human safety operator - transportation network company - rideshare drivers - algorithmic management - public notification - permits / permit process - Open Meeting Law - accessibility for people with disabilities - first responders - economic impacts - liability - congestion - independent research institution - final report - Minnesota Department of Transportation