LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 3968

STATE OF NEW JERSEY

222nd LEGISLATURE

 

DATED: JUNE 25, 2026

 

 

SUMMARY

 

Synopsis:

Establishes fully autonomous vehicle pilot program.

Type of Impact:

Three-year increase in annual State expenditures; potential three-year increase in annual State revenues; potential three-year increase in annual local expenditures. 

Agencies Affected:

Department of Transportation; New Jersey Motor Vehicle Commission; Division of State Police; Office of the Attorney General; Office of Administrative Law; counties and municipalities. 

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 through Year 3

 

State Expenditure Increase

Indeterminate

 

Potential State Revenue Increase

Indeterminate

 

Potential Local Expenditure Increase

Indeterminate

 

 

·         The Office of Legislative Services (OLS) estimates that this bill may result in an indeterminate increase in State expenditures to the Department of Transportation and the Motor Vehicle Commission to establish, administer, and enforce a three-year fully autonomous vehicle pilot program.

 

·         Additionally, the OLS estimates that this bill may result in increased annual State revenues from application fees paid by autonomous vehicle testers and civil penalties imposed for failure to report certain cases.  The magnitude of the revenue increases is indeterminate because the bill leaves the application fee and civil penalty amounts to be determined by the department and does not specify the number of testers of vehicles that will take part in the pilot program.

 

·         Lastly, the OLS estimates that the bill may result in additional State and local costs associated with the deployment of smart infrastructure, including sensor-equipped roads, communication systems, and real-time traffic management technology.  The magnitude of this impact is indeterminate because the bill directs the department to identify funding sources and coordinate with counties and municipalities, but does not require a specific level of investment.

BILL DESCRIPTION

 

      The bill establishes a three-year pilot program to permit the operation of fully autonomous vehicles in the State under the supervision of the department, in consultation with the commission.  The bill requires the department to develop and administer an application and authorization process for autonomous vehicle testers, including review of safety certifications, law enforcement interaction plans, first responder interaction plans, proof of insurance or self-insurance, and payment of an application fee established by the department.  Application fees are to be used for operational expenses, maintenance, and implementation of the pilot program.

      The bill establishes a nine-member task force within the department to oversee the pilot program.  The task force is required to meet regularly, issue quarterly reports on program progress, solicit public feedback, make recommendations concerning State laws and regulations, and coordinate with the Division of State Police and the Office of the Attorney General in the Department of Law and Public Safety on safety-related matters. 

      The bill requires the Department of Transportation to collect crash and disengagement data from autonomous vehicle testers, publish crash information on the department’s website every other month, and transmit certain information to appropriate federal agencies.  The bill authorizes the department to impose civil penalties on testers that fail to comply with reporting requirements.            The bill also authorizes the department to suspend, revoke, or restrict a tester’s authorization when a fully autonomous vehicle is determined to pose a public safety risk and provides for administrative hearings regarding those actions.  The bill also requires the department to establish fully autonomous vehicle testing environments and coordinate with counties and municipalities to deploy smart infrastructure, including sensor-equipped roads, communication systems, and real-time traffic management technology.  The department is required to identify funding sources to support these activities.  Additionally, the bill establishes consumer disclosure requirements concerning partially automated driving systems and provides that violations of certain provisions of the bill constitute violations of the Consumer Fraud Act, enforceable by the Office of the Attorney General.

      Finally, the bill requires the department to submit a final report to the Governor and the Legislature within six months following completion of the pilot program evaluating the program’s effectiveness, safety outcomes, and recommendations for future legislation.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received. 

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that this bill may result in an indeterminate increase in State expenditures to the department and the commission to establish, administer, and enforce a three-year fully autonomous vehicle pilot program.  Some of the costs may include application review, authorization of testers, rulemaking, task force support, and preparation of the final report.  Notably, California’s FY 2013-2014 budget included an appropriation of $980,000 and two positions for start-up costs related to the implementation of their autonomous vehicle on public roads program. 

      Additionally, the OLS estimates that this bill may result in increased annual State revenues from application fees paid by autonomous vehicle testers and civil penalties imposed for failure to report certain cases.  The magnitude of the revenue increases is indeterminate because the bill leaves the application fee and civil penalty amounts to be determined by the department and does not specify the number of testers of vehicles that will take part in the pilot program. 

      Lastly, the OLS estimates that the bill may result in additional State and local costs associated with the deployment of smart infrastructure, including sensor-equipped roads, communication systems, and real-time traffic management technology.  The magnitude of this impact is indeterminate because the bill directs the department to identify funding sources and coordinate with counties and municipalities, but does not require a specific level of investment. 

 

 

Section:

Authorities, Utilities, Transportation and Communications

Analyst:

Michael D. Walker Jr. 

Associate Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).