S.F. _____ Section 1. NEW SECTION . 321.514 Definitions. 1 As used in this section and sections 321.515 through 2 321.519, unless the context otherwise requires: 3 1. “Automated driving system” means the hardware and 4 software collectively capable of performing all dynamic driving 5 tasks on a sustained basis, regardless of whether the system is 6 limited to a specific operational design domain, if any. 7 2. “Conventional human driver” means a natural person 8 who manually controls the in-vehicle accelerating, braking, 9 steering, and transmission gear selection input devices in 10 order to operate a motor vehicle. 11 3. “Driverless-capable vehicle” means a system-equipped 12 vehicle capable of performing all dynamic driving tasks within 13 the automated driving system’s operational design domain, if 14 any, including but not limited to achievement of a minimal risk 15 condition without intervention or supervision by a conventional 16 human driver. 17 4. “Dynamic driving task” means any real-time operational 18 and tactical function required to operate a motor vehicle on 19 a highway in traffic within an automated driving system’s 20 specific operational design domain, if any. “Dynamic driving 21 task” does not include any strategic function such as trip 22 scheduling or the selection of destinations and waypoints. 23 5. “Minimal risk condition” means a reasonably safe state 24 to which an automated driving system brings a system-equipped 25 vehicle upon experiencing a performance-relevant failure of the 26 system that renders the system unable to perform any dynamic 27 driving task, including but not limited to bringing the vehicle 28 to a complete stop and activating the vehicle’s hazard lamps. 29 6. “On-demand driverless-capable vehicle network” means a 30 transportation service network that uses a software application 31 or other digital means to dispatch driverless-capable vehicles 32 for the purposes of transporting persons or goods, including 33 transportation for hire as defined in section 325A.1, and 34 public transportation. 35 -1- LSB 1793XC (5) 88 ns/rh 1/ 7

S.F. _____ 7. “Operational design domain” means a set of constraints 1 used to define the domain under which an automated driving 2 system is designed to properly operate, including but not 3 limited to types of highways, speed ranges, environmental 4 conditions such as weather or time of day, and other 5 constraints. 6 8. “System-equipped vehicle” means a motor vehicle equipped 7 with an automated driving system. 8 Sec. 2. NEW SECTION . 321.515 Operation. 9 1. A driverless-capable vehicle may operate on the public 10 highways of this state without a conventional human driver 11 physically present in the vehicle, if the vehicle meets all of 12 the following conditions: 13 a. The vehicle is capable of achieving a minimal risk 14 condition if a malfunction of the automated driving system 15 occurs that renders the system unable to perform any dynamic 16 driving task within the system’s intended operational design 17 domain, if any. 18 b. While in driverless operation, the vehicle is capable of 19 operating in compliance with the applicable traffic and motor 20 vehicle safety laws and regulations of this state that govern 21 the performance of dynamic driving tasks, unless an exemption 22 has been granted to the vehicle by the department. 23 c. The vehicle has been certified by the vehicle’s 24 manufacturer to be in compliance with all applicable federal 25 motor vehicle safety standards, except to the extent an 26 exemption has been granted for the vehicle under applicable 27 federal law or by the national highway traffic safety 28 administration. 29 2. a. The operation of a system-equipped vehicle capable 30 of performing all dynamic driving tasks within the automated 31 driving system’s operational design domain on the public 32 highways of this state while a conventional human driver is 33 present in the vehicle shall be lawful. Such operation is 34 subject to the provisions of this chapter, including the 35 -2- LSB 1793XC (5) 88 ns/rh 2/ 7

S.F. _____ requirement that the conventional human driver possess a 1 valid driver’s license pursuant to section 321.174. The 2 conventional human driver shall operate the system-equipped 3 vehicle according to the manufacturer’s requirements and 4 specifications, and shall regain manual control of the vehicle 5 when prompted by the automated driving system. 6 b. An automated driving system, while engaged, shall be 7 designed to operate within the system’s operational design 8 domain in compliance with the applicable traffic and motor 9 vehicle safety laws and regulations of this state that govern 10 the performance of dynamic driving tasks, unless an exemption 11 has been granted to the vehicle by the department. 12 3. Except as provided in this section, the motor vehicle 13 laws of this state shall not be construed to require a 14 conventional human driver to operate a driverless-capable 15 vehicle that is being operated by an automated driving system. 16 The automated driving system, while engaged, shall be deemed 17 to fulfill any physical acts required of a conventional human 18 driver to perform dynamic driving tasks. 19 Sec. 3. NEW SECTION . 321.516 Insurance. 20 Before a system-equipped vehicle is allowed to operate on 21 the public highways of this state, the owner shall submit to 22 the department proof of financial liability coverage for the 23 vehicle in a manner and form determined by the department. 24 Sec. 4. NEW SECTION . 321.517 Accidents. 25 In the event of an accident in which a system-equipped 26 vehicle is involved, the vehicle shall remain at the scene of 27 the accident and the operation of the vehicle shall otherwise 28 comply with sections 321.261 through 321.273 where applicable 29 and to the extent possible, and the vehicle’s owner or a person 30 on behalf of the vehicle’s owner shall promptly report the 31 accident to law enforcement authorities. If a system-equipped 32 vehicle fails to remain at the scene of an accident or the 33 operation of the vehicle fails to otherwise comply with 34 sections 321.261 through 321.273 where applicable and to the 35 -3- LSB 1793XC (5) 88 ns/rh 3/ 7

S.F. _____ extent possible as required by this section, the vehicle’s 1 failure shall be imputed to the vehicle’s owner, and the 2 vehicle’s owner may be charged and convicted of a violation of 3 sections 321.261 through 321.273, as applicable. 4 Sec. 5. NEW SECTION . 321.518 On-demand driverless-capable 5 vehicle network. 6 A person may operate an on-demand driverless-capable vehicle 7 network. An on-demand driverless-capable vehicle network may 8 be used to facilitate the transportation of persons or goods, 9 including transportation for hire as defined in section 325A.1, 10 and public transportation. An on-demand driverless-capable 11 vehicle network may connect passengers to driverless-capable 12 vehicles either exclusively or as part of a digital network 13 that also connects passengers to conventional human drivers 14 who provide transportation services, consistent with chapter 15 321N or any other applicable laws, in vehicles that are not 16 driverless-capable vehicles. 17 Sec. 6. NEW SECTION . 321.519 Authority. 18 1. Automated driving systems and system-equipped vehicles 19 shall be governed exclusively by sections 321.514 through 20 321.518, and this section. Automated driving systems and 21 system-equipped vehicles shall be regulated exclusively by the 22 department in accordance with sections 321.514 through 321.518. 23 2. A political subdivision of the state shall not impose 24 requirements, including but not limited to performance 25 standards, specific to the operation of system-equipped 26 vehicles, automated driving systems, or on-demand 27 driverless-capable vehicle networks that are in addition to 28 the requirements set forth under sections 321.514 through 29 321.518. A political subdivision of the state shall not 30 impose a tax on system-equipped vehicles, automated driving 31 systems, or on-demand driverless-capable vehicle networks 32 where such tax relates specifically to the operation of 33 system-equipped vehicles, automated driving systems, or 34 on-demand driverless-capable vehicle networks. 35 -4- LSB 1793XC (5) 88 ns/rh 4/ 7

S.F. _____ EXPLANATION 1 The inclusion of this explanation does not constitute agreement with 2 the explanation’s substance by the members of the general assembly. 3 This bill relates to automated driving systems (ADS). 4 OPERATION. The bill authorizes a driverless-capable vehicle 5 to operate on the public highways without a conventional 6 human driver physically present in the vehicle if the vehicle 7 meets certain conditions. First, the vehicle must be capable 8 of achieving a minimal risk condition if a malfunction of 9 the ADS occurs that renders the ADS unable to perform any 10 dynamic driving task within the ADS’s intended operational 11 design domain, if any. Second, while in driverless operation, 12 the vehicle must be capable of operating in compliance with 13 the applicable traffic and motor vehicle safety laws and 14 regulations of this state that govern the performance of 15 dynamic driving tasks, unless an exemption has been granted to 16 the vehicle by the department of transportation (DOT). Third, 17 the vehicle must be certified by the vehicle’s manufacturer 18 to be in compliance with all applicable federal motor vehicle 19 safety standards, except to the extent an exemption has been 20 granted for the vehicle under applicable federal law or by the 21 national highway traffic safety administration. 22 The bill provides that the operation of a system-equipped 23 vehicle capable of performing all dynamic driving tasks within 24 the ADS’s operational design domain on the public highways 25 while a conventional human driver is present in the vehicle 26 shall be lawful. Such operation is subject to the provisions 27 of Code chapter 321, including the requirement that the 28 conventional human driver possess a valid driver’s license. 29 The conventional human driver must operate the system-equipped 30 vehicle according to the manufacturer’s requirements and 31 specifications, and must regain manual control of the vehicle 32 when prompted by the ADS. 33 The bill provides that the motor vehicle laws of this state 34 shall not be construed to require a conventional human driver 35 -5- LSB 1793XC (5) 88 ns/rh 5/ 7

S.F. _____ to operate a driverless-capable vehicle that is being operated 1 by an ADS. The ADS, while engaged, is deemed to fulfill 2 any physical acts required of a conventional human driver to 3 perform dynamic driving tasks. 4 INSURANCE. The bill requires, before a system-equipped 5 vehicle is allowed to operate on the public highways, that 6 the owner submit to the DOT proof of financial liability 7 coverage for the vehicle in a manner and form determined by the 8 DOT. Under Code chapter 321, “financial liability coverage” 9 means an owner’s policy of liability insurance in the amounts 10 specified in Code section 321A.21, a bond filed with the 11 DOT, a certificate of deposit filed with the DOT, or a valid 12 certificate of self-insurance issued by the DOT. 13 ACCIDENTS. In the event of an accident in which a 14 system-equipped vehicle is involved, the bill requires 15 the vehicle to remain at the scene of the accident and the 16 operation of the vehicle to otherwise comply with Code sections 17 321.261 through 321.273 where applicable and to the extent 18 possible, and the vehicle’s owner or a person on behalf 19 of the vehicle’s owner to promptly report the accident to 20 law enforcement authorities. The bill provides that if a 21 system-equipped vehicle fails to remain at the scene of an 22 accident or the operation of the vehicle fails to otherwise 23 comply with Code sections 321.261 through 321.273 where 24 applicable and to the extent possible as required by the 25 bill, the vehicle’s failure shall be imputed to the vehicle’s 26 owner, and the vehicle’s owner may be charged and convicted 27 of a violation of Code sections 321.261 through 321.273, as 28 applicable. 29 NETWORKS. The bill authorizes a person to operate 30 an on-demand driverless-capable vehicle network. An 31 on-demand driverless-capable vehicle network may be used to 32 facilitate the transportation of persons or goods, including 33 transportation for hire and public transportation. An 34 on-demand driverless-capable vehicle network may connect 35 -6- LSB 1793XC (5) 88 ns/rh 6/ 7

S.F. _____ passengers to driverless-capable vehicles either exclusively or 1 as part of a digital network that also connects passengers to 2 conventional human drivers who provide transportation services 3 in vehicles that are not driverless-capable vehicles. 4 AUTHORITY. The bill specifies that automated driving 5 systems and system-equipped vehicles shall be governed 6 exclusively by the bill and regulated exclusively by the DOT. 7 The bill prohibits a political subdivision of the state 8 from imposing requirements, including but not limited 9 to performance standards, specific to the operation of 10 system-equipped vehicles, ADSs, or on-demand driverless-capable 11 vehicle networks that are in addition to the requirements 12 set forth under the bill. The bill also prohibits a 13 political subdivision of the state from imposing a tax on 14 system-equipped vehicles, ADSs, or on-demand driverless-capable 15 vehicle networks where such tax relates specifically to the 16 operation of system-equipped vehicles, ADSs, or on-demand 17 driverless-capable vehicle networks. 18 PENALTIES. Under Code section 321.482, it is a simple 19 misdemeanor for a person to do an act forbidden or to fail 20 to perform an act required by Code chapter 321, unless a 21 penalty is otherwise specified by law. A simple misdemeanor is 22 punishable by confinement for no more than 30 days or a fine of 23 at least $65 but not more than $625 or by both. 24 -7- LSB 1793XC (5) 88 ns/rh 7/ 7