HF4112

Purpose and Goals

• Establish a statewide framework for the operation, safety, accountability, and oversight of autonomous vehicles (AVs), automated driving systems (ADS), and on-demand AV networks in Minnesota.
• Define key terms and set safety and financial responsibility requirements, while clarifying how AVs interact with existing traffic laws.
• Centralize regulatory authority at the state level and limit local rules and licensing for AVs, with certain provisions for airports and general taxes.

Key Definitions Added to Minnesota Statutes

• Automated driving system: hardware and software capable of performing the entire dynamic driving task on a sustained basis.
• Autonomous vehicle: a motor vehicle with an ADS designed to function at SAE J3016 level 4 or 5.
• Dynamic driving task: real-time driving functions such as steering, acceleration, environment monitoring, maneuver planning, and signaling—excluding trip planning and destination choice.
• Dynamic driving task fallback: what happens when ADS or human drivers must take over to return to a minimal risk condition.
• First responder interaction plan: procedures for how first responders should interact with an AV, including communication with fleet support, safe removal, mode recognition, and additional safety information.
• Human driver: a natural person with a valid license who can control all or part of the dynamic driving task.
• Minimal risk condition: a safe state an AV or human driver can reach when the dynamic driving task cannot be completed safely.
• Ondemand autonomous vehicle network: a software-enabled network that dispatches AVs for passengers or goods, including for-hire services.
• Operational design domain: the specific operating conditions under which the ADS is designed to function (environment, geography, time of day, traffic, etc.).
• SAE J3016: the 2021 revision of the standard taxonomy for driving automation systems.

Main Provisions and What the Bill Seeks to Accomplish

• Section 11: Operating autonomous vehicles on public roads

  • AVs must meet requirements before operating with ADS engaged.
  • If ADS fails to perform the dynamic driving task, the vehicle must reach a minimal risk condition.
  • AVs must comply with Minnesota traffic laws when reasonably possible, unless an exemption is granted.
  • Federal certification labels (when required by law) must be present, showing compliance with federal safety standards and any NHTSA exemptions.
  • Owners/operators must have proof of financial responsibility (insurance) for the AV.
  • Authorization is required to operate AVs without a human driver, including submission of an application with vehicle information and a written statement certifying compliance and a first responder plan. Applications are to be reviewed within 30 days; incomplete or inaccurate applications can be denied within 30 days; authorizations do not expire unless suspended or canceled.

• Section 11 (continued): Human drivers can still operate AVs

  • Nothing prevents a human driver from taking control of an AV that has controls enabling manual takeover.

• Section 12: Collisions involving autonomous vehicles

  • If a human driver is present, follow standard crash reporting requirements.
  • An AV without a human driver must remain at the scene as required by law.
  • The AV operator authorized to operate without a human driver must report crashes in line with existing reporting rules.

• Section 13: Financial responsibility requirements

  • AV owners must maintain proof of financial responsibility equivalent to standard motor vehicle requirements.
  • If the ADS is engaged and the vehicle operates without a human driver, the liability minimum is $1,000,000 for third-party liability.
  • PIP and uninsured motorist benefits requirements apply as applicable, and policies may be coordinated with other coverages to meet these requirements.
  • Insurance can come from a Minnesota-licensed insurer or an eligible surplus lines insurer.
  • The financial responsibility requirement does not raise other insurance requirements merely due to AV use.

• Section 14: Ondemand autonomous vehicle networks

  • ONV networks may transport passengers or goods if they meet applicable sections (169.251 to 169.257).
  • They cannot accept traditional street hail requests.
  • Must not park unlawfully for longer than needed to pick up or drop off.
  • Must disclose fare and fare calculation method on the network’s site or app before a ride starts.
  • Must provide an electronic receipt after a ride, detailing origin, destination, time, distance, and fare.
  • Vehicles must display distinctive signage or emblem at all times when active.
  • Vehicles must be inspected before service and then annually; network must keep inspection records for three years.
  • If wheelchair-accessible vehicles are not available, the network must direct requests to providers offering such service.

• Section 15: Operation of commercial AVs

  • AVs that are also commercial motor vehicles must follow CMV laws, except where those laws concern human drivers.
  • Vehicle dimensions related to CMVs (e.g., width) recognize the ADS configuration.

• Section 16: AV equipment standards

  • AVs designed to operate exclusively without a human driver for all trips are not subject to certain Minnesota motor vehicle equipment laws that are meant for human drivers.

• Section 17: Controlling authority and local regulation

  • AVs, ADS, and ONV networks are governed exclusively by state law; local ordinances conflicting with state law are preempted.
  • Local entities cannot impose additional AV-specific requirements, licenses, permits, or taxes for ONV networks.
  • Airports may impose reasonable fees and designate staging locations for AVs, as long as those are reasonably equivalent to other passenger services.
  • This section does not exempt AV networks from general taxes or from enforcing traffic and road rules.

Notable Changes to Existing Law

• Adds comprehensive, codified definitions for ADS, AVs, dynamic driving task, and related concepts to Minnesota Statutes.
• Creates a framework for authorizing AVs to operate without a human driver, including application processes, safety requirements, and ongoing updates.
• Establishes a formal requirement for financial responsibility and a minimum liability limit for AVs.
• Establishes specific rules for on-demand AV networks, including fare disclosure, receipts, signage, inspections, and accessibility obligations where feasible.
• Clarifies how AVs interact with existing collisions reporting, and how ADS-equipped vehicles should be treated under current traffic laws when operating without a driver.
• Preempts local ordinances and restricts local licensing, permitting, or special taxes for AV operations, with limited airport-specific allowances.

Significant Operational Concepts Emphasized

• Minimal risk condition as a safety objective when the dynamic driving task cannot be completed safely.
• First responder interaction planning to ensure responders can engage with AVs safely.
• Operational design domain to limit ADS operation to defined conditions.
• Distinguishing autonomous (no human driver) operation from traditional vehicle operation, while allowing human takeover if desired.

Relevant Terms - Automated driving system - Autonomous vehicle - Dynamic driving task - Dynamic driving task fallback - First responder interaction plan - Human driver - Minimal risk condition - Ondemand autonomous vehicle network - Operational design domain - SAE J3016 - Authorization (to operate without a human driver) - Financial responsibility / insurance - Collision reporting - Not a common carrier - Preemption of local regulation - Wheelchair accessibility (as applicable) - Inspection and signage requirements - Commercial autonomous vehicles (CMV context)