SF4010

Purpose

This bill seeks to regulate the use of autonomous vehicles in Minnesota. It defines key terms, sets rules for when automated driving systems can operate (including driverless operation with official permission), requires safety and financial responsibilities, and creates rules for on‑demand autonomous vehicle networks. It also aims to create a uniform statewide framework by preempting conflicting local rules.

Key Definitions

• Automated driving system (ADS): the hardware and software capable of performing 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 (per SAE J3016).
• Dynamic driving task (DDT): real-time driving functions such as steering, acceleration, monitoring the road, object detection, planning, and signaling—not including trip planning or selecting destinations.
• Dynamic driving task fallback: the process by which a driver or ADS returns to a minimal risk condition after a failure or exit from the intended driving domain.
• Minimal risk condition (MRC): a safe state a vehicle can reach to reduce crash risk if the trip cannot be completed.
• First responder interaction plan: procedures for responders on how to interact with an autonomous vehicle, including communication and safety steps.
• Operational design domain (ODD): the specific conditions under which an ADS is designed to function (environment, geography, time of day, etc.).
• On-demand autonomous vehicle network: a software-enabled system that dispatches autonomous vehicles to transport passengers or goods.
• SAE J3016: the 2021 revision of the standard taxonomy for driving automation terms.
• First responder plans, vehicle inspections, signage requirements, and financial responsibility standards are all tied to these definitions.

Main Provisions

• Definitions added to law

  • Adds Subdivisions for Automated Driving System, Autonomous Vehicle, Dynamic Driving Task, and related terms to Minnesota Statutes.

• Operation without a human driver (driverless operation)

  • An autonomous vehicle may operate without a human driver only if: (a) it meets the ADS/vehicle requirements, (b) the operator has authorization from the commissioner, and (c) a first responder interaction plan is provided to the commissioner and the DPS.
  • Applications for driverless operation require identifying information for the applicant and the vehicle(s) and a statement certifying compliance with the ADS requirements and the first responder plan.
  • The commissioner must approve or deny a complete application within 30 days.
  • Authorizations do not expire on their own and remain active unless suspended, revoked, or canceled; updates must be provided within 30 days of material changes; failure to update can trigger suspension.
  • A human driver may still operate an autonomous vehicle if they are present and in control.

• Driver and licensure concepts

  • When the ADS is engaged with no human present, the ADS is treated as the driver for purposes of traffic laws; the operator can be cited if noncompliant.
  • An autonomous vehicle with authorization may be considered licensed to operate under state law if authorized.

• Collision and reporting

  • If a collision occurs, the human driver must follow existing reporting rules; an autonomous vehicle without a human driver must stay on the scene as required by law and report the collision as appropriate.

• Financial responsibility and insurance

  • Vehicle owners must carry proof of financial responsibility at least at a specified minimum.
  • Operators using the ADS must maintain financial responsibility of at least $1,000,000 for third‑party liability, with requirements to cover basic economic loss benefits and uninsured motorist benefits as applicable.
  • Financial responsibility can be satisfied by a lawfully issued insurance policy or eligible surplus lines policy, and is not automatically increased just because the vehicle uses an ADS.

• Dynamic driving task and safety basics

  • Reiterates that the ADS must perform the entire dynamic driving task and must fail to a minimal risk condition if it cannot complete the task or exits its operational domain.
  • Requires the vehicle to operate in compliance with Minnesota traffic and safety laws, unless an exemption is granted.
  • Federal certifications and safety standards (and any exemptions) must be acknowledged as applicable.

• On-demand autonomous vehicle networks

  • Such networks may transport passengers or goods in Minnesota if they meet the specified sections.
  • They cannot accept traditional street hail requests and must disclose fare methods in advance.
  • Must provide ride receipts listing origin, destination, time/distance, and total fare after rides.
  • Vehicles must display distinctive signage or emblems at all times while active.
  • Pre-service inspections are required, with annual inspections thereafter; inspection records must be kept for three years.
  • If wheelchair accessibility is not available, networks must direct riders to accessible providers when reasonably possible.

• Not a common carrier

  • On-demand networks are not considered common carriers, and Chapter 221’s provisions do not apply to these networks.

• Commercial autonomous vehicles and vehicle standards

  • Autonomous vehicles that are also commercial motor vehicles must follow CMV rules except for provisions that only apply to human drivers.
  • For CMVs, the ADS components may be treated as parts like a mirror for measurement purposes.

• Equipment standards for driverless operation

  • Vehicles designed to operate exclusively without a human driver are not subject to motor vehicle equipment laws that relate to human-driver operation.

• Governing authority and local preemption

  • State law governs autonomous vehicles, ADS, and on-demand networks.
  • Local ordinances conflicting with state law are preempted.
  • Local entities cannot impose extra licensing, permitting, taxes, or fees specific to autonomous operations (with limited airport-related allowances for fees and staging areas).

Significance and Expected Impacts

• Creates a statewide framework for driverless operation and autonomous vehicle networks.
• Establishes a clear license/authorization process for operating autonomous vehicles without a human driver.
• Sets financial responsibility requirements to address liability and protection for the public.
• Introduces standardized safety practices, including first responder interaction planning and routine vehicle inspections.
• Enables on-demand autonomous vehicle networks while maintaining consumer protections like fare disclosure and receipts.
• Preempts local laws to promote uniform statewide adoption, while permitting airport-specific considerations.

How It Changes Existing Law

• Adds new definitions and subdivisions to clarify ADS, autonomous vehicles, dynamic driving task, fallback, and related terms.
• Establishes a formal authorization regime for driverless operation, including plans for first responders and ongoing updates.
• Introduces a mandatory $1,000,000 minimum for third-party liability for autonomous vehicle operation.
• Creates specific rules for on-demand autonomous vehicle networks, including signage, inspections, and accessibility considerations.
• Preempts local control by mandating state-wide standards and limiting local licensing or surcharge authorities for autonomous operations.

Practical Considerations

• Companies aiming to deploy driverless autonomous vehicles must prepare an authorization package and a first responder interaction plan.
• Operators must ensure robust financial responsibility coverage and be ready for regulatory inspections and record-keeping.
• Local governments will need to align with the statewide framework rather than crafting separate autonomous vehicle rules.

Potential Areas for Further Oversight

• Details of the first responder interaction plan content and the exact process for plan approval.
• How “material changes” to operator information are defined and managed.
• Specifics on how the $1,000,000 financial responsibility floor interacts with different insurance products and state requirements.
• Implementation timelines and exemptions for airports or special jurisdictions.

Relevant Terms - automated driving system - autonomous vehicle - dynamic driving task - dynamic driving task fallback - minimal risk condition - first responder interaction plan - operational design domain - on-demand autonomous vehicle network - SAE J3016 - authorization to operate without a human driver - proof of financial responsibility - third-party liability - collision reporting - distinctive signage - vehicle inspections - not a common carrier - preemption - traffic and motor vehicle safety laws - commercial autonomous vehicle - wheelchair accessibility (and alternatives)