ASSEMBLY COMMITTEE SUBSTITUTE FOR
ASSEMBLY, No. 3968
STATE OF NEW JERSEY
222nd LEGISLATURE
ADOPTED JUNE 1, 2026
Sponsored by:
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
Assemblyman CLINTON CALABRESE
District 36 (Bergen and Passaic)
Assemblyman WILLIAM F. MOEN, JR.
District 5 (Camden and Gloucester)
Co-Sponsored by:
Assemblyman Singh
SYNOPSIS
Establishes fully autonomous vehicle pilot program.
CURRENT VERSION OF TEXT
Substitute as adopted by the Assembly Science, Innovation and Technology Committee.
An Act establishing a fully autonomous vehicle pilot program and supplementing Title 27 of the Revised Statutes.
Be It Enactedby the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Authorization holder" means a person authorized by the department to operate a fully autonomous vehicle pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
"Automated driving system" means a combination of hardware and software systems within a motor vehicle that are collectively capable of performing the entire dynamic driving task on a sustained basis, regardless of whether the dynamic driving task is limited to a specific operational design domain.
"Autonomous vehicle manufacturer" means a person or entity that builds or sells fully autonomous vehicles; a person or entity that installs automated driving systems in motor vehicles that are not originally built as fully autonomous vehicles; or a person or entity that develops automated driving systems in fully autonomous vehicles or in motor vehicles that are not originally built as fully autonomous vehicles.
"Autonomous vehicle tester" means an autonomous vehicle manufacturer, institution of higher education, fleet service specialist, or automotive equipment or technology provider that tests the autonomous vehicle's operation and performance across urban, suburban, rural, and highway settings and under varied weather and traffic conditions.
"Chief administrator" means the Chief Administrator of the New Jersey Motor Vehicle Commission.
"Closed testbed" means a closed facility with infrastructure simulating real-world traffic control and road conditions for autonomous vehicle testing that is not connected to live transportation systems.
"Commission" means the New Jersey Motor Vehicle Commission.
"Commissioner" means the Commissioner of Transportation.
"DDT fallback" means the response by a human driver or an automated driving system to either perform the DDT or achieve a minimal risk condition after the occurrence of a DDT performance-relevant system failure or upon operational design domain exit.
"Department" means the Department of Transportation.
"Dynamic driving task" or "DDT" means all real-time operational and tactical functions required to operate a motor vehicle, including, at a minimum, monitoring of the environment, steering, acceleration, braking, and obstacle avoidance.
"First responder interaction plan" means a document of procedures directing first responders on how to interact with a fully autonomous vehicle, which document describes, at minimum:
a. how to communicate with a fleet service specialist who is available during the times the fully autonomous vehicle is in operation;
b. how to safely remove the fully autonomous vehicle from the roadway, including, but not limited to, steps to safely tow the vehicle;
c. how to recognize whether the fully autonomous vehicle is in autonomous mode; and
d. any additional information the autonomous vehicle manufacturer, or the manufacturer of the automated driving system, deems necessary regarding hazardous conditions or public safety risks associated with the operation of the autonomous vehicle.
"Fleet service specialist" means a person or entity that owns or leases a fully autonomous vehicle and operates the fully autonomous vehicle for commercial or public use.
"Fully autonomous vehicle" means a motor vehicle that is equipped with an automated driving system and designed to function without a human driver and has a level of automation that is classified as a level four automation or level five automation as defined in SAE J3016.
"Human driver" means the individual seated in the driver's seat of a fully autonomous vehicle who controls all or part of the DDT.
"Law enforcement interaction plan" means a document directing a fully autonomous vehicle on how to alert law enforcement agencies, or other emergency response agencies, if the fully autonomous vehicle is involved in a collision with another vehicle or object.
"Minimal risk condition" means a condition to which a person, a human driver, or an automated driving system may bring a vehicle after performing the DDT fallback to reduce the risk of a crash when a given trip cannot or should not be completed.
"Open-road testbed" means a testbed equipped with sensing, computing, and connected motor vehicle technologies that can communicate with, and monitor the operations of, fully autonomous vehicles and their interaction with other motor vehicles and road users.
"Operational design domain" means any operating conditions under which an automated driving system is specifically designed to function, including, but not limited to, environmental, geographical, and time-of-day restrictions, and the requisite presence or absence of certain traffic or roadway characteristics.
"Person" includes natural persons, firms, copartnerships, associations, and corporations.
"Pilot program" means the fully autonomous vehicle pilot program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
"Urban area" means a place designated by the United States Census Bureau as having a population of 5,000 or more within boundaries to be fixed by responsible State and local officials in cooperation with each other, subject to approval by the Secretary of Transportation of the United States. At a minimum, the boundaries shall encompass the entire place designated by the United States Census Bureau.
2. a. The Department of Transportation, in consultation with the New Jersey Motor Vehicle Commission, shall establish a three-year pilot program to allow autonomous vehicle testers to operate fully autonomous vehicles in the State, including in closed testbeds and open-road testbeds. A fully autonomous vehicle shall not be tested or operated in the State unless the autonomous vehicle tester has been authorized by the department to participate in the pilot program and complies with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). In addition, a fully autonomous vehicle shall not be tested or operated under the pilot program if the vehicle requires a person, pursuant to either federal or State law, to possess a commercial driver license.
b. An autonomous vehicle tester shall apply to the department for approval to participate in the pilot program, in a form and manner determined by the department. At a minimum, the application shall include a law enforcement interaction plan, which shall be reviewed and approved by the department prior to the autonomous vehicle tester partaking in the pilot program. Each autonomous vehicle tester shall pay an application fee to the department, in an amount to be determined by the department, which shall be used by the department for operational expenses, maintenance, and the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. The pilot program shall be overseen by a task force composed of nine members as follows: a public safety official, a transportation expert, an autonomous vehicle developer, an automobile insurance industry representative, a consumer advocate, a motor vehicle dealer representative operating in the State, a representative of the department, and two representatives of the commission. The task force members shall be appointed by the department, in consultation with the commission. The task force shall:
(1) report the status of the pilot program to the department and the commission on a quarterly basis;
(2) solicit public feedback concerning the pilot program;
(3) assist the department and the commission by suggesting changes to State laws related to fully autonomous vehicles, including those related to collisions, cyberattacks against autonomous vehicle manufacturers and fully autonomous vehicles, major operational disruptions concerning fully autonomous vehicles, and liability for any fully autonomous vehicle collisions that may occur during the pilot program; and
(4) coordinate with the New Jersey Division of State Police and the Office of the Attorney General to develop guidelines regarding pedestrian and driver security and safety.
d. An autonomous vehicle tester shall not deploy a fully autonomous vehicle in the State unless:
(1) the person is:
(a) seated in the driver's seat of the fully autonomous vehicle;
(b) monitoring the operation of the fully autonomous vehicle;
(c) capable of taking immediate manual control of the fully autonomous vehicle;
(d) an employee, independent contractor, or other person designated and trained by the autonomous vehicle tester concerning the capabilities and limitations of the fully autonomous vehicle;
(e) not under the influence of drugs or alcohol; and
(f) a holder of a valid basic driver's license or other appropriate license, as determined by the commission;
(2) the autonomous vehicle tester registers each fully autonomous vehicle to be operated with the commission and submits to the commission, in a manner and form determined by the commission, proof of liability insurance, self-insurance, or a surety bond of at least $5,000,000 for damages by reason of bodily injury, death, or property damage caused by the fully autonomous vehicle; and
(3) the human driver and the autonomous vehicle tester:
(a) comply with the applicable provisions of Title 39 of the Revised Statutes and any other applicable laws, rules, and regulations of this State concerning the operation of a motor vehicle;
(b) comply with the standards established by the National Highway Traffic Safety Administration regarding fully autonomous vehicles; and
(c) satisfy any other requirement as determined by the commissioner, in consultation with the chief administrator, as necessary to ensure the safe operation of fully autonomous vehicles in the State.
e. Notwithstanding paragraph (1) of subsection d. of this section, an autonomous vehicle tester may operate a fully autonomous vehicle without a human driver. However, the autonomous vehicle tester shall demonstrate to the department that the autonomous vehicle manufacturer has:
(1) conducted testing of the fully autonomous vehicle within the proposed operational design domain for a minimum of 50,000 miles and provided the department with an assessment supporting the autonomous vehicle manufacturer's safety claims; and
(2) completed the required minimum of 50,000 miles on public roadways in the State without major incident throughout the intended operational design domain with a human driver physically located in the driver's seat or, if the fully autonomous vehicle was involved in a major incident while completing the 50,000 mile requirement, the fully autonomous vehicle was not at fault for the major incident.
f. When the automated driving system installed on a vehicle is engaged:
(1) the automated driving system shall be considered the human driver of the vehicle for the purpose of assessing compliance with applicable traffic or motor vehicle laws and shall be capable of performing all physical acts required by a human driver of a vehicle; and
(2) the automated driving system shall be considered licensed to operate the vehicle.
g. In addition to satisfying the requirements of this section, a person shall not operate a fully autonomous vehicle on the public roads of this State to transport property or passengers in furtherance of a commercial enterprise without a human driver unless:
(1) the person receives and maintains authorization to operate fully autonomous vehicles from the department pursuant to subsection b. of this section; and
(2) the person has provided the New Jersey Division of State Police with a first responder interaction plan.
However, pursuant to subsection a. of this section, nothing in this subsection shall be construed to permit the testing or operation under the pilot program of a fully autonomous vehicle that requires a person, pursuant to federal or State law, to possess a commercial driver license.
h. Upon receipt of an application pursuant to subsection b. of this section that is complete and accurate, the department shall approve the application and thereby authorize the applicant to operate a fully autonomous vehicle pursuant to this section. This authorization shall not expire unless suspended or revoked by the department. However, prior to receiving this authorization, a person shall provide to the department:
(1) the name, address, and principal contact information for the person applying for authorization;
(2) the vehicle information for the fully autonomous vehicle used for operations; and
(3) a written statement certifying that each fully autonomous vehicle complies with subsection d. of this section.
i. The authorization holder shall provide to the department an update to the information required pursuant to subsection h. of this section no later than 30 days after the information materially changes. The commissioner may immediately suspend or revoke the authorization if the authorization holder fails to comply with this subsection. The commissioner shall promptly rescind the suspension or revocation upon receiving the updated information.
j. The commissioner may immediately prohibit a human driver or autonomous vehicle tester from operating a fully autonomous vehicle if the commissioner determines that the operation of a fully autonomous vehicle by the human driver or autonomous vehicle tester poses a risk to public safety or that the human driver or autonomous vehicle tester fails to comply with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
k. The commissioner shall establish guidelines that prohibit the operation of fully autonomous vehicles in the event of extreme weather, emergency service situations, power outages, and any other circumstances as determined by the commissioner.
l. An autonomous vehicle tester that participates in the pilot program shall provide information to the commissioner that the commissioner deems to be appropriate for measuring the performance of the pilot program. The autonomous vehicle tester may withhold any commercially valuable, confidential, or proprietary information. However, the withholding of such information shall not impede the department's ability to measure the performance of the pilot program.
3. a. If the commissioner determines that the fully autonomous vehicle operated by an authorization holder is not in safe operational condition and poses a risk to public safety, the commissioner shall provide the authorization holder for the vehicle with a notice of intent to:
(1) suspend or revoke the authorization; or
(2) impose restrictions on the operation of the vehicle.
b. For the purposes of this section, the operation of a fully autonomous vehicle shall be deemed a risk to public safety when the operation creates a substantial risk of death or has caused death, serious permanent disfigurement, or protracted loss or impairment of the function of any bodily member or organ.
c. The notice of intent issued pursuant to subsection a. of this section shall:
(1) summarize the commissioner's determination and supporting evidence for the determination;
(2) provide the authorization holder with a reasonable period of time to:
(a) correct the issues identified in the commissioner's determination; and
(b) provide to the commissioner the certification required by subsection d. of this section; and
(3) specify which enforcement actions the commissioner will take if the authorization holder fails to provide the required certification within the specified time period. During this period, the authorization holder may not operate the autonomous vehicle.
d. Before the time period specified in a notice of intent expires, the authorization holder shall:
(1) correct the issues identified by the commissioner in the notice; and
(2) provide to the commissioner a certification acknowledging that the issues identified by the commissioner in the notice have been corrected along with an explanation of how the issues have been corrected, such as identifying any operational measures that were implemented.
e. The commissioner may extend the period specified in a notice of intent upon a written request for an extension if the commissioner determines that the extension request is reasonable.
f. If the authorization holder fails to comply with subsection d. of this section, the commissioner shall:
(1) issue a decision, as specified in the notice of intent, that suspends or revokes the authorization, or that imposes restrictions on the operation of the vehicle; and
(2) notify the authorization holder of the decision issued by the commissioner.
g. Within 10 days of receiving notice of a decision issued by the commissioner pursuant to subsection f. of this section, an authorization holder may submit a written request to the commissioner for review of the decision. Within 10 days of the commissioner receiving such a request, the commissioner shall review the decision and issue a final determination to the authorization holder either upholding or rescinding the decision.
h. If the commissioner issues a final determination that upholds the decision, an authorization holder may submit a written request for a hearing. The request shall be submitted within 10 days of the commissioner upholding the commissioner's decision. The commissioner shall set a hearing within 10 days of the hearing request and provide the authorization holder, the autonomous vehicle manufacturer, and the manufacturer of the automated driving system the opportunity to present evidence at the hearing. The hearing shall be conducted by an administrative law judge of the Office of Administrative Law and shall be conducted within 30 days of the commissioner's final determination upholding the commissioner's decision. If a hearing is not held during this period, the authorization issued shall be automatically reinstated or the restriction imposed automatically removed, as applicable.
i. The commissioner shall
promptly rescind a suspension or revocation, or remove a restriction, if the
authorization holder takes the necessary actions, as verified by the
commissioner, to comply with subsection d. of this section.
4. A fully autonomous vehicle operated under the pilot program shall:
a. be equipped with a redundant safety system to ensure a controlled stop in case of system failure and technology that ensures appropriate motor vehicle control;
b. allow the human driver or emergency responders to override autonomous functions through manual controls of an emergency stop mechanism and allow human drivers to take control at any time through various methods, including, but not limited to, use of the brake, the accelerator pedal, or steering wheel;
c. alert human drivers when the fully autonomous vehicle technology has been disengaged and the human driver is required to take control of the motor vehicle;
d. retain data recordings beginning 30 seconds before a collision and be capable of capturing operational data such as speed, steering, braking, sensor inputs, and system failures;
e. be equipped with crash-avoidance systems, including a camera system and two distinct sensing modalities that are capable of detecting and tracking obstacles in the event of failure of the camera system so that the automated driving system can avoid obstacles while bringing the vehicle to a minimal risk condition, which systems shall be capable of pedestrian detection, automatic emergency braking, and lane keep assist systems;
f. comply with posted speed limits and emit artificial noise for pedestrian safety;
g. meet industry cybersecurity standards to prevent unauthorized access or hacking and ensure that all data is encrypted for privacy protection;
h. bear a marker that is visible to other drivers and pedestrians to indicate the motor vehicle is a fully autonomous vehicle;
i. be capable of achieving a minimal risk condition or, when operated by a human driver, issue a request for the autonomous vehicle tester to intervene in the event the automated driving system fails such that the automated driving system is unable to perform the entire dynamic driving task relevant to its intended operational design domain;
j. be covered by motor vehicle liability coverage or self-insurance in an amount equal to or greater than the amount of coverage required under the laws of this State, and proof of such insurance is submitted to the commission, in a manner and form determined by the commission;
k. comply with any applicable provision of Title 39 of the Revised Statutes or any other applicable law of this State concerning the operation of motor vehicles;
l. comply with the standards established by the National Highway Traffic Safety Administration regarding fully autonomous vehicles;
m. when required by federal law, bear the required manufacturer's certification label indicating that, at the time of its manufacture, the vehicle was certified to comply with all applicable Federal Motor Vehicle Safety Standards, including reference to any exemption granted by the National Highway Traffic Safety Administration; and
n. satisfy any other requirements determined by the commissioner, in consultation with the chief administrator, as necessary to ensure the safe operation of fully autonomous vehicles in the State.
5. a. An autonomous vehicle tester shall report a crash involving any of its fully autonomous vehicles to the department no later than five calendar days after receiving notice of a crash if:
(1) the crash occurred on a publicly-accessible road in the State;
(2) the automated driving system in the fully autonomous vehicle was engaged for any amount of time beginning 30 seconds prior to the commencement of the crash through the conclusion of the crash;
(3) the crash resulted in a fatality, any individual being transported to a hospital for medical treatment, an airbag deployment, or impact with a pedestrian; and
(4) the notice of the crash is received at least 10 calendar days after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. The report required by subsection a. of this section shall contain all applicable information required by the Third Amended Standing General Order 2021-01 issued by the National Highway Traffic Safety Administration and shall be submitted in a format consistent with the requirements of the order.
c. The department shall compile and post on the department's Internet website the crash data submitted pursuant to subsection a. of this section and update this data every other month. The department shall transmit this data to the National Highway Traffic Safety Administration and the National Transportation Safety Board every other month. The department shall not publish any proprietary business information, including trade secrets or personally identifying information, when posting the data on the department's Internet website.
d. An autonomous vehicle tester that fails to report a crash pursuant to subsection a. of this section to the department shall be liable to the department for a civil penalty, in an amount to be determined by the department, per violation per day.
6. A fully autonomous vehicle operated under the pilot program shall not operate in a school zone, a construction zone, or an area with high rates of pedestrian collisions, as determined by the department.
7. a. A motor vehicle dealer or manufacturer that sells, leases, or otherwise transfers a new passenger vehicle that is equipped with a partial automated driving system shall provide the buyer, lessee, or transferee, at or before the time of sale, lease, or transfer, a written disclosure that:
(1) identifies each partial automated driving system feature installed on the vehicle by its official name; and
(2) describes in clear and conspicuous language the function, capabilities, and limitations of each partial automated driving system feature, including the requirement for the driver to remain attentive and in control of the vehicle at all times.
b. A manufacturer or dealer shall not use marketing materials, labels, advertisements, or representations that imply or would lead a reasonable person to believe that a partial automated driving system feature renders the vehicle capable of fully autonomous operation or negates the need for a responsible driver.
c. A violation of this section shall be considered a violation of the New Jersey consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.), and shall be subject to enforcement by the Attorney General.
8. a. The department shall establish new fully autonomous vehicle testing environments, including closed testbeds and open-road testbeds, and shall also make use of any existing autonomous vehicle testing environments.
b. The department shall identify funding sources to invest in and shall coordinate with counties and municipalities to deploy smart infrastructure for fully autonomous vehicles, including sensor-equipped roads, communication systems, and real-time traffic management technology.
9. Fully autonomous vehicles operating as autocabs or taxis, as those terms are defined in R.S.48:16-1, shall only be permitted to operate on designated highways, pursuant to those provisions of State law governing the operation of taxis that can reasonably apply to the operation of fully autonomous vehicles with the automated driving system engaged. Such vehicles shall be identifiable as fully autonomous vehicles, shall be continuously monitored through data reporting, and shall have communication systems for emergency overrides by law enforcement or other emergency responders.
10. In the absence of a human driver, the autonomous vehicle tester shall be liable for:
a. any property damages sustained due to improper operation of a fully autonomous vehicle;
b. traffic law violations, including, but not limited to, improper operations of a fully autonomous vehicle that illegally block access on streets, illegally park on or otherwise block sidewalks or bicycle lanes, violate anti-idling regulations, and illegally pass stop signs or intersection red-lights; and
c. crash injuries or fatalities sustained due to improper operation of a fully autonomous vehicle.
11. No later than six months after the completion of the three-year pilot program, the department shall submit to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature a report that evaluates the pilot program and includes recommendations for the safe integration of fully autonomous vehicles on the highways of this State.
12. a. Unless otherwise provided in P.L. , c. (C. ) (pending before the Legislature as this bill), and notwithstanding any other provision of law to the contrary, fully autonomous vehicles and automated driving systems shall be governed exclusively by P.L. , c. (C. ) (pending before the Legislature as this bill). The department shall be the sole and exclusive State agency that may implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. No State agency, political subdivision, municipality, or local entity may prohibit the operation of fully autonomous vehicles or automated driving systems or otherwise enact or keep in force rules or ordinances that would impose taxes, fees, or other requirements specific to the operation of fully autonomous vehicles or automated driving systems in addition to the requirements of P.L. , c. (C. ) (pending before the Legislature as this bill).
13. The department shall adopt, in consultation with the commission, and pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations strictly necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
14. This act shall take effect immediately and shall expire upon the submission of the report required pursuant to section 11 of P.L. , c. (C. ) (pending before the Legislature as this bill).