SB1417 - 572R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 28-9701, Arizona Revised Statutes, is amended to read:

START_STATUTE28-9701. Definitions

In this chapter, unless the context otherwise requires:

1. "Distinct roadway participant" means a vehicle type, including a motorcycle, whose size, acceleration, lane position or visibility profile materially differs from a passenger motor vehicle and that requires specialized automated driving system detection and response.

2. "Fallback-ready user" means a human driver who is physically present in an autonomous vehicle and who is capable of assuming manual control when presented with a request to intervene from the automated driving system.

3. "Near-miss event" means an incident involving an autonomous vehicle during in which a collision was narrowly avoided as identified by a post-encroachment time of less than two seconds or hard braking to avoid impact with a vulnerable road user or distinct roadway participant.

1. 4. "On-demand autonomous vehicle network" means a passenger transportation network that uses a digital network or software application to connect passengers to fully autonomous vehicles for transportation, exclusively or in addition to other vehicles, including transportation for hire and transportation for compensation.

2. 5. "Request to intervene" means a notification by an automated driving system to a human driver fallback-ready user that the human driver should promptly begin or resume performance of part or all of the dynamic driving task.

6. "Vulnerable road user" means any person who is using the roadway and not in a motor vehicle, including a pedestrian or bicyclist. END_STATUTE

Sec. 2. Section 28-9702, Arizona Revised Statutes, is amended to read:

START_STATUTE28-9702. Operation of autonomous vehicles; quarterly report

A. Except as otherwise provided in this chapter, the operation of autonomous vehicles with or without a human driver is subject to all applicable federal and state laws.

B. A person may operate an autonomous vehicle with the automated driving system engaged on public roads in this state only:

1. With a licensed human driver who is able to resume part or all of the dynamic driving task or respond to a request to intervene, if any.

2. after approval by the department of the autonomous vehicle's operational design domain and service area, including detailed scenario validation data that address detection and interaction with vulnerable road users and distinct roadway participants.

C. A fully autonomous vehicle may operate on public roads without a human driver only if a person submits both all of the following:

1. A law enforcement interaction plan to the department of transportation and the department of public safety that is consistent with and addresses all of the elements in the law enforcement protocol that was issued by the department of public safety on May 14, 2018, before beginning the operation or if the operation has already begun, within sixty days after September 29, 2021.

2. A written statement to the department of transportation acknowledging that ACKNOWLEDGES all of the following:

(a) When required by federal law, the fully autonomous vehicle is equipped with an automated driving system that is in compliance with all applicable federal laws and federal motor vehicle safety standards, including SAE J3016 and 49 code of federal regulations part 571, and bears the required certification labels including reference to any exemption granted by the national highway traffic safety administration under applicable federal law.

(b) If a failure of the automated driving system occurs that renders that system unable to perform the entire dynamic driving task relevant to its intended operational design domain pursuant to section 28-9709, including the ability to safely stop or disengage, the fully autonomous vehicle will achieve a minimal risk condition.

(c) The fully autonomous vehicle is capable of complying with all applicable traffic and motor vehicle safety laws of this state and that the person who submits the written statement for the fully autonomous vehicle may be issued a traffic citation or other applicable penalty if the vehicle fails to comply with traffic or motor vehicle laws.

(d) The fully autonomous vehicle meets all applicable certificate of title, registration, licensing and insurance requirements of this title.

(e) The fully autonomous vehicle bears a manufacturer or operator identifier issued by the department pursuant to section 28-9709.

3. Valid proof of an active liability insurance policy or proof of financial responsibility in an amount not less than $5,000,000 per occurrence.

4. notification of any software or mapping update that materially changes operational behavior of the autonomous vehicle within ten days of any update. The manufacturer or operator shall provide an updated written statement as required pursuant to paragraph 2 of this subsection that the autonomous vehicle remains compliant with safety standards.

5. to both the department of transportation and the department of public safety A quarterly safety performance report that must include:

(a) The total number of miles driven by the fully autonomous vehicle in this state.

(b) The number and type of collisions, including any collisions involving vulnerable road users and distinct roadway participants.

(d) Any software or map updates affecting detection algorithms and boundary logic.

D. If a person fails to submit a law enforcement interaction plan or statement prescribed by subsection C of this section, the department may immediately issue a cease and desist letter prohibiting the operation of a fully autonomous vehicle on public roads of this state until the person submits the law enforcement interaction plan and or statement.

E. When engaged, the manufacturer or operator that is designated in the department's registry of the automated driving system is considered the driver or operator of the autonomous vehicle for the purpose of assessing compliance with applicable traffic or motor vehicle laws and is both:

1. Deemed to satisfy electronically all physical acts required by a driver or operator of the vehicle.

2. Exempt from the requirements of chapter 8 of this title.

F. Notwithstanding any other law, a licensed human driver is not required to operate a fully autonomous vehicle that is operated in compliance with this chapter.

G. This chapter does not prohibit or restrict a licensed human driver from driving a fully autonomous vehicle equipped with controls that allow for the human driver to control all or part of the dynamic driving task. END_STATUTE

Sec. 3. Section 28-9703, Arizona Revised Statutes, is amended to read:

START_STATUTE28-9703. Department of public safety; law enforcement protocols; law enforcement interaction plan; rules

a. The department of public safety, in coordination with other relevant law enforcement agencies and the department of transportation, shall maintain a law enforcement protocol for fully autonomous vehicles. The protocol shall include guidelines for persons who operate fully autonomous vehicles to provide information to law enforcement agencies and other first responders on how to interact with fully autonomous vehicles in emergency and traffic enforcement situations, including how to provide contact information for insurance and citation purposes and any other information needed to ensure the safe operation of fully autonomous vehicles in this state. The department of public safety may issue a revised law enforcement protocol after providing advance notice to and an opportunity for comment from persons that have submitted statements pursuant to section 28-9702, subsection C, paragraph 2.

b. The department of transportation, in consultation with the department of public safety, shall adopt rules necessary to implement this article. Rules adopted pursuant to this section must:

1. Define required safety data reporting formats.

2. Specify the structure for independent third-party performance audits.

3. Establish standards for fully autonomous fleet identification and emergency responder access.

c. The department of transportation shall enter into a memorandum of understanding with the department of public safety regarding enforcement of this article, collision investigations and public data reporting requirements. END_STATUTE

Sec. 4. Section 28-9707, Arizona Revised Statutes, is amended to read:

START_STATUTE28-9707. Traffic or motor vehicle laws; autonomous vehicles

a. Except as otherwise provided by this chapter, a traffic or motor vehicle law of this state may not prohibit the operation of an autonomous vehicle or require a human driver to operate a fully autonomous vehicle with the automated driving system engaged, if the fully autonomous vehicle is operated in compliance with this chapter.

b. Notwithstanding subsection A of this section, a city or town may regulate AUTONOMOUS vehicle staging areas and parking zones and construction detours affecting autonomous vehicles.

c. The department shall issue guidance to cities and towns for integrating autonomous vehicle operations with municipal traffic control and emergency response plans. END_STATUTE

Sec. 5. Section 28-9708, Arizona Revised Statutes, is amended to read:

START_STATUTE28-9708. Enforcement; violation; civil penalty

A. Except as provided in section 28-9702 and subsection G of this section, this section provides the exclusive means by which the department may:

1. Suspend, revoke or cancel the registration of an autonomous vehicle for reasons related to safety.

2. Otherwise restrict the operation of an autonomous vehicle for reasons related to safety.

B. If the department has information, data or other evidence indicating that an autonomous vehicle is likely not in safe mechanical condition and likely to endanger persons on the highway, the department may issue a request for relevant information to the owner and the person who submitted the statement required by section 28-9702 for the autonomous vehicle.

C. The owner or the person who submitted the statement required by section 28-9702 shall respond to a request for information submitted under subsection B of this section within a reasonable time specified by the department. The response may be in the form of documents, a meeting with the department, a demonstration or any other reasonable form or combination of forms.

D. After considering and evaluating all responses provided pursuant to subsections B and C of this section, if the department determines based on data, information or other evidence that an autonomous vehicle is not in safe mechanical condition and endangers persons on the highway, the department may send the vehicle owner and the person who submitted the statement required by section 28-9702 for the autonomous vehicle a notice of intent to suspend the registration or impose restrictions on the operation of the autonomous vehicle. The notice shall include:

1. A description of the department's reasons and evidence supporting the determination.

2. A statement that a certification of correction or adjustment shall be submitted within a specified time and that the certification shall include an explanation of how the issues identified by the department in the notice have been addressed, such as identifying adjustments made to the automated driving system or operational measures implemented.

E. If the owner or person who submitted the statement required by section 28-9702 for the autonomous vehicle that is the subject of a notice of intent to suspend or restrict operation fails to submit the certification required by subsection D of this section within the time specified or the department finds that the certification is not true and accurate, the department shall notify the person and owner that the registration for that autonomous vehicle has been suspended or restricted as specified in the notice. If the person or owner later submits the required certification, the department shall remove the suspension or restriction on receipt of the certification. If the department finds that the certification was intentionally falsified or an intentional obstruction of an investigation occurred, the department shall refer a violation OF this subsection to the department of public safety for criminal investigation.

F. A person who disputes the department's finding may request a hearing within ten days after the date of the notice of intent to suspend or restrict operation issued under subsection D of this section. A hearing requested under this subsection shall be held not more than sixty days after the submission of a request for a hearing. A decision to uphold the determination of the department is subject to judicial review pursuant to title 12, chapter 7, article 6.

G. This section does not apply to a vehicle that is subject to chapter 14 of this title and does not affect the applicability or enforcement of chapter 14 of this title or federal laws applicable to commercial motor vehicles as defined in section 28-5201.

h. A manufacturer or operator that violates this article or any rule adopted pursuant to this article is subject to a civil penalty of not more than $25,000 per violation. Each day a violation occurs shall constitute a separate violation. the department shall deposit, PURSUANT to sections 35-146 and 35-147, civil penalty in the autonomous vehicle safety fund established by section 28-9712. END_STATUTE

Sec. 6. Title 28, chapter 32, article 1, Arizona Revised Statutes, is amended by adding sections 28-9709, 28-9710, 28-9711 and 28-9712, to read:

START_STATUTE28-9709. Operational design domains; service areas; requirements; manufacturer or operator identifier

A. a person shall submit for approval by the department Operational design domains and service areas for each INITIAL submission and for each material change, including software updates, and must include all of the following:

1. Maps showing proposed GEOGRAPHIC operating areas.

2. Maximum speed capabilities within each geographic area.

3. Weather tolerances that can impact safe operations, including dust storms, rain and bright sunlight.

4. TRAFFIC density limits or lane restrictions and shALL INCLUDE Allowances for lane filtering motorcycles, bike lanes and traffic control devices.

5. System behavior FOR UNPROTECTED left turns, AT four-way stops and AT signaled INTERSECTIONS.

6. Emergency fallback CAPAbilities.

B. The department shall evaluate and APPROVE operational design domains and service areas using the following criteria:

1. Identification of roadway classifications that the autonomous vehicle or fully autonomous vehicle can operate in.

2. SPECIFICATION of ENVIRONMENTAL limitations for the AUTONOMOUS vehicle or fully autonomous vehicle, including PRECIPITATION, lighting, temperature and visibility.

3. Description of disengagement THRESHOLDS and fallback behaviors.

4. Disclosure of GEOGRAPHIC boundaries of intended OPERATION.

5. Documentation of OPERATIONAL restrictions relating to school zones, construction areas and vulnerable road users and distinct roadway participants.

C. a person may alter service areas with a formal submission pursuant to subsection A of this section and on approval by the department of the new service area.

D. on approval of the operational design domains and service areas, the department shall issue a manufacturer or operator identifier. The form and size of the Manufacturer or operator identifier shall be prescribed by the department in rule. The Manufacturer or operator identifier shall be placed on the AUTONOMOUS vehicle or fully autonomous vehicle in a CLEARLY visible position as prescribed by the department in rule. END_STATUTE

START_STATUTE28-9710. Data retention and access

A. Each autonomous vehicle and fully AUTONOMOUS vehicle operating in this state shall continuously record operational data sufficient to reconstruct events that occur not more than thirty seconds before and after a collision or near-miss event occurs.

b. Operational data required pursuant to this section shall be stored in a secure, tamper-resistant system and retained for not less than twelve months after the OCCURRENCE of a collision or for the duration of any investigation or litigation, whichever is longer.

c. on request, a manufacturer or operator shall provide the department of public safety and the department of transportation, or any other authorized agencies, with access to the automatic driving system's collision data records and mapping versions and to other relevant logs.

d. Data collected pursuant to this section is confidential and may be disclosed only to:

1. law enforcement agencies for investigations into any collisions involving autonomous vehicles or fully autonomous vehicles.

2. Courts of competent jurisdiction pursuant to a duly issued subpoena.

3. The department for regulatory compliance review.

E. this section does not limit a party's right to obtain automated driving system data through lawful discovery procedures for a civil or criminal proceeding. END_STATUTE

START_STATUTE28-9711. Vulnerable road users and distinct roadway participants; performance tests; rules

A. each fully autonomous vehicle operating without a human driver shall demonstrate compliance with department-certified performance tests for interactions with vulnerable road users and distinct roadway participants, including:

1. Motorcycle detection and classification under lowlight and occlusion conditions.

2. Prediction and response to oncoming motorcycles during an unprotected left turn.

3. Overtaking and lane sharing behavior when encountering bicycles.

4. pedestrian detection at crosswalks, alleys and driveways.

b. The department shall establish by rule the test procedures and validation criteria for the performance tests required pursuant to subsection A of this section. test procedures and validation criteria shall use standardized surrogate safety measures, including post-encroachment times, time to collision and hard-braking frequency.

C. a person may not expand a fully autonomous vehicle service area in this state unless the person completes and publishes vulnerability-specific scenarios validation results that are reviewed by an independent third-party safety assessor that is recognized by the department. END_STATUTE

START_STATUTE28-9712. Autonomous vehicle safety fund; use of fund monies

A. The autonomous vehicle safety fund is established consisting of civil penalties collected pursuant to section 28-9708 and legislative appropriations. The department shall administer the fund. Monies in the fund are subject to LEGISLATIVE appropriation.

B. The department shall use the monies in the fund to:

1. Administer safety testing and reporting programs.

2. Conduct independent audits of autonomous vehicle performance data. The INDEPENDENT audits required by this paragraph shall be conducted annually or on significant deviation from operational design parameters and include:

(a) Collision history and autonomous vehicle behavior immediately PRECEDING a collision.

(b) System disengagement logs.

(d) Speed and acceleration metrics.

(e) System DIAGNOSTIC data indicating SENSOR failures or computational errors.

(f) Human takeover requests and fall-back user events, if applicable.

(g) Performance data collected during unusual ENVIRONMENTAL CONDITIONS and weather events.

3. Support public education on autonomous vehicle safety for riders and pedestrians.

4. Provide grants to law enforcement officers and first responders for autonomous vehicle training and equipment. END_STATUTE

Sec. 7. Effective date

This act is effective from and after December 31, 2026.

Sec. 8. Severability

If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision of application, and to this end the provisions of this act are severable.