ASSEMBLY SCIENCE, INNOVATION AND TECHNOLOGY COMMITTEE

STATEMENT TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 3968

STATE OF NEW JERSEY

DATED:  JUNE 1, 2026

      The Assembly Science, Innovation and Technology Committee reports favorably an Assembly Committee Substitute for Assembly Bill No. 3968.

      This committee substitute requires the Department of Transportation (department), in consultation with the New Jersey Motor Vehicle Commission (commission), to establish a three-year pilot program to allow fully autonomous vehicle testers (testers) to operate fully autonomous vehicles (AVs) in the State, including in closed testbeds and open-road testbeds.  However, an AV that is tested or operated in the State:  (1) may only be tested and operated by a tester that has been authorized by the department to participate in the pilot program, complies with the provisions of the substitute, and meets certain conditions outlined in the substitute; and (2) may not be of a motor vehicle type that requires a person, pursuant to either federal or State law, to possess a commercial driver license.  Under the substitute, the pilot program is to be overseen by a task force composed of nine members, as outlined in the substitute, to be appointed by the department in consultation with the commission.  The task force is required to carry out certain tasks enumerated in the substitute.

      To participate in the pilot program, a tester is required to apply to the department for approval.  At a minimum, the application is to include certain criteria outlined in the substitute, including an application fee, in an amount determined by the department, which fee is to be used by the department for operational expenses, maintenance, and the implementation of the pilot program.  The tester is also required to register each AV to be operated with the commission and submit to the commission certain insurance information outlined in the substitute.  The substitute also permits a tester to operate an AV without a human driver if the tester demonstrates certain information to the department, as outlined in the substitute.  However, in the absence of a human driver, the tester is to be liable for any property damages sustained due to improper operation of an AV, traffic law violations, and crash injuries or fatalities sustained due to improper operation of an AV.

      Upon receipt of an application that is complete and accurate, the department is to approve the application and thereby authorize the applicant to operate an AV.  This authorization is not to expire unless suspended or revoked by the department.  However, prior to receiving this authorization, a person is required to provide the department with certain information outlined in the substitute.  If an authorization holder does not provide the department with an update to the information required for an application within 30 days after the information materially changes, then the Commissioner of the Department of Transportation (commissioner) may immediately suspend or revoke the authorization of the authorization holder.  However, the commissioner is to promptly rescind the suspension or revocation upon receiving the updated information.

      A tester that participates in the pilot program is required to provide information to the commissioner that the commissioner deems appropriate for measuring the performance of the pilot program.  The tester may withhold any commercially valuable, confidential, or proprietary information.  However, the withholding of such information is not to impede the department’s ability to measure the performance of the pilot program.

      Under the substitute, when the automated driving system installed on a vehicle is engaged, the automated driving system is to be considered the human driver of the vehicle for the purpose of assessing compliance with applicable traffic or motor vehicle laws, is to be capable of performing all physical acts required by a human driver of a vehicle, and is to be considered licensed to operate the vehicle.  In addition, a person is not to operate an AV on the public roads of this State to transport property or passengers in furtherance of a commercial enterprise without a human driver unless certain criteria outlined in the substitute are met.

      The commissioner may immediately prohibit a human driver or tester from operating an AV if the commissioner determines that the operation of an AV by the human driver or tester poses a risk to public safety or that the human driver or tester fails to comply with the provisions of the substitute.  The commissioner is also required to establish guidelines that prohibit the operation of AVs in the event of extreme weather, emergency service situations, power outages, and any other circumstances as determined by the commissioner.

      If the commissioner determines that the AV operated by an authorization holder is not in safe operational condition and poses a risk to public safety, the commissioner is to provide the authorization holder for the vehicle with a notice of intent to suspend or revoke the authorization or impose restrictions on the operation of the vehicle.  The operation of an AV is to 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.  The substitute establishes certain requirements for the information to be included in the notice of intent, procedures for how an authorization holder may respond to and remedy a notice of intent, guidelines for how the commissioner is to reach a decision regarding issues identified in the notice of intent, and means for an authorization holder to appeal such decisions.

      Under the pilot program, an AV is required to:  (1) be equipped with certain safety features and technology; (2) 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; (3) alert human drivers when the AV technology has been disengaged and the human driver is required to take control of the motor vehicle; (4) retain data recordings beginning 30 seconds before a collision and be capable of capturing certain operational data; (5) be equipped with crash-avoidance systems that utilize certain technology; (6) comply with posted speed limits and emit artificial noise for pedestrian safety; (7) meet certain industry cybersecurity standards; (8) bear a marker that is visible to other drivers and pedestrians to indicate the motor vehicle is an AV; (9) be capable of achieving a minimal risk condition or, when operated by a human driver, requesting the tester to intervene in certain circumstances; (10) have certain insurance coverage; (11) comply with applicable federal and State laws and standards; (12) bear the required manufacturer’s certification label, when required by federal law; and (13) satisfy certain other requirements determined by the commissioner in consultation with the Chief Administrator of the New Jersey Motor Vehicle Commission.

      A tester is required to report a crash involving any of its AVs to the department no later than five calendar days after receiving notice of a crash in certain situations specified in the substitute.  As outlined in the substitute, the report is to contain certain information and to be posted and regularly updated on the department’s Internet website.  The department is required to transmit this data to the National Highway Traffic Safety Administration and the National Transportation Safety Board every other month.  However, the department is not to publish any proprietary business information, including trade secrets or personally identifying information, when posting the data on the department’s Internet website.  A tester that fails to report a crash to the department is to be liable to the department for a civil penalty, in an amount to be determined by the department, per violation per day.

      An AV operated under the pilot program is not to operate in a school zone, a construction zone, or an area with high rates of pedestrian collisions, as determined by the department.

      The substitute also establishes certain disclosure requirements and other marketing restrictions for 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.  A violation of these provisions of the substitute is to be considered a violation of the New Jersey consumer fraud act and is to be subject to enforcement by the Attorney General.

      The department is to establish new AV testing environments, including closed testbeds and open-road testbeds, and is to also make use of any existing AV testing environments.  The department is to identify funding sources to invest in and is to coordinate with counties and municipalities to deploy smart infrastructure for AVs, including sensor-equipped roads, communication systems, and real-time traffic management technology.

      Under the substitute, AVs operating as autocabs or taxis may only operate on designated highways, pursuant to those provisions of State law governing the operation of taxis that can reasonably apply to the operation of AVs with the automated driving system engaged.  Such vehicles are to be identifiable as AVs, are to be continuously monitored through data reporting, and are to have communication systems for emergency overrides by law enforcement or other emergency responders.

      No later than six months after completion of the three-year pilot program, the department is to submit to the Governor and to the Legislature a report that evaluates the pilot program and includes recommendations for the safe integration of AVs on the highways of this State.

      Finally, under the substitute, unless otherwise provided for, AVs and automated driving systems are to be governed exclusively by the provisions of the substitute.  No State agency, political subdivision, municipality, or local entity may prohibit the operation of AVs 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 AVs or automated driving systems in addition to the requirements of the substitute.