SECTION 1. The General Laws are hereby amended by inserting after Chapter 90, Section 62 the following sections:

Section 63. Definitions applicable to Secs. 63 to 63F

(a) The following words, as used in Sections 63 to 63F, inclusive, shall have the following meanings:

(1) “Automated driving system” means a combination of hardware and software that has the capability to perform driving tasks by controlling and combining braking, throttle, and steering functionality without the active physical control or monitoring by a human driver.

(2) “Autonomous vehicle” means any motor vehicle as defined in section one of this chapter equipped with an automated driving system that has been integrated into that vehicle, where the automated driving system performs all driving tasks and monitors the driving environment without the expectation that a human driver will be available to respond appropriately to a request to intervene.  An autonomous vehicle does not include a vehicle that merely is equipped with one or more collision avoidance systems, including, but not limited to, electronic blind spot assistance, automated emergency braking systems, park assist, adaptive cruise control, lane keep assist, lane departure warning, traffic jam and queuing assist, or other similar systems that enhance safety or provide driver assistance, but are not capable, collectively or singularly, of driving the vehicle without the active control or monitoring of a human driver.

(3) “Level three vehicle” means any motor vehicle as defined in section one of this chapter equipped with an automated driving system that has been integrated into that vehicle, where the automated driving system performs all driving tasks and monitors the driving environment with the expectation that a human driver will be available to respond appropriately to a request to intervene.  A level three vehicle does not include a vehicle that merely is equipped with one or more collision avoidance systems, including, but not limited to, electronic blind spot assistance, automated emergency braking systems, park assist, adaptive cruise control, lane keep assist, lane departure warning, traffic jam and queuing assist, or other similar systems that enhance safety or provide driver assistance, but are not capable, collectively or singularly, of driving the vehicle without the active control or monitoring of a human driver.

(3) The term “zero emission vehicle” (or “ZEV”) means any passenger car or light duty truck that produces zero emissions of any criteria pollutants under any and all possible operational modes and conditions. Incorporation of a fuel fired heater shall not preclude a vehicle from being certified as a ZEV provided the fuel fired heater cannot be operated at ambient temperatures above 40°F and the heater is demonstrated to have zero evaporative emissions under any and all possible operational modes and conditions. In addition, zero emission vehicle or "ZEV," means any ZEV placed in service in compliance with the California Project pursuant to the requirements of the Master Memorandum of Agreement adopted by the California Air Resources Board March 29, 1996.

(4) The term “public transit” shall include any train, passenger bus, passenger ferry boat, water shuttle or other equipment used in public transportation owned by, or operated under the authority of a regional transit authority as set forth in section 3 of chapter 161B, the Massachusetts Bay Transportation Authority, the Massachusetts Port Authority, or the Massachusetts Department of Transportation.

(5) “Department” means the Massachusetts Department of Transportation.

(6) “Registrar” means the Registrar of Motor Vehicles.

(7) An “operator” is the person or entity providing use of a level three or autonomous vehicle commercially, publicly, or privately.  Operators include, but are not limited to, the following: commercial passenger transportation service companies, commercial freight service companies, transit authorities, academic or research institutions developing automated driving systems, and individual owners or lessors of privately owned autonomous vehicles.

(8) A “passenger” of a level three or autonomous vehicle is any person physically present in an autonomous vehicle while the autonomous vehicle’s automated driving system is engaged.

(9) A “manufacturer” of an autonomous vehicle is:

(a) The person or entity that originally manufactures a vehicle and equips an automated driving system on the originally completed vehicle; or

(b) In the case of a vehicle not originally equipped with an automated driving system by the vehicle manufacturer, the person or entity that modifies the vehicle by installing an automated driving system to convert it to an autonomous vehicle after the vehicle was originally manufactured.

(10) “Testing” means analysis and evaluation of level three or autonomous vehicles by a manufacturer, an operator, or an expert third party engaged by a manufacturer or operator.

(11) “Deployment” means use of autonomous vehicles by members of the public who may but need not be employees or agents of manufacturers or operators of autonomous vehicles.

Section 63A. Autonomous vehicle policy and regulatory authority

(a) It shall be the policy of the commonwealth of Massachusetts to promote the integration of autonomous vehicles into the commonwealth for the purpose of improving the transportation system and encouraging economic development, and to allow autonomous vehicles on the public ways of the commonwealth subject to such restrictions as are necessary to ensure protection of the commonwealth’s people and environment, adequate funding of the commonwealth’s transportation infrastructure, and compliance with state and federal laws.

(b) The Department is hereby authorized in accordance with the provisions of chapter thirty A to promulgate such rules as are necessary to carry out its duties under Sections 63 through 63F of this chapter and in accordance with the purpose set forth in subsection (a) of this section.  In promulgating any such regulations, the Department shall seek to protect the commonwealth’s most impacted and disadvantaged communities and ensure equal protection and the equitable distribution of the benefits and costs associated with the introduction of autonomous vehicles.

Section 63B. Level three and autonomous vehicles allowed

(a) A level three vehicle may be tested on public ways within the commonwealth only if the level three vehicle:

(1) Has a failure alert system to notify the passenger when a system failure is detected;

(2) Meets the federal motor vehicle safety standards for its model year and all other applicable safety standards and performance requirements established by state and federal law;

(3) Relies on the most recent version of all software used as part of its automated driving system and such software has been updated to the latest available version within thirty days of the release of any such updated version;

(4) is a zero-emissions vehicle, unless the vehicle has a maximum design loaded weight of more than or equal to eight thousand five hundred pounds;

(5) is clearly marked as an autonomous vehicle in a manner approved by the Registrar; and

(6) Has a system that captures and stores such data as the Department deems necessary through rules promulgated in accordance with the provisions of chapter thirty A, after consultation with the Registrar.  Any such system must be open-source and based on common standards, with an operating system that has been made public so that components performing the same function can be readily substituted or provided by multiple providers.  The data captured and stored by such system shall include, but not be limited to, real-time distance traveled and real-time number of passengers.  Data relating to real-time distance traveled and real-time number of passengers shall be stored, with the capability of being cross-referenced, for a reasonable time period as established by the Department, provided that such period shall not exceed eighteen months.  Data relating to safety shall be stored for a reasonable time period after the vehicle has been removed from services, established by the Department, provided that such period shall not exceed eighteen months.

In issuing any regulations setting requirements for data collection from autonomous vehicles, the Department shall take all necessary steps:

(A) To protect the privacy of individuals including, but not limited to, the operators and passengers of autonomous vehicles; and

(B) To ensure the security of the data-collection system, the resistance of the system to tampering, and the accuracy of the data captured and stored by the system.

Such steps shall include limiting the availability of any sensitive data to the public.

(b) An autonomous vehicle may be tested or deployed on public ways within the commonwealth only if the autonomous vehicle:

(1) Has a mechanism that is readily accessible to passengers, that does not rely on wireless connectivity, and that, if engaged, forces the vehicle to expediently come to the closest safe stop and allow passengers to exit.

(2) Has a failure alert system to notify the passenger when a system failure is detected;

(3) Meets the federal motor vehicle safety standards for its model year and all other applicable safety standards and performance requirements established by state and federal law;

(4) Relies on the most recent version of all software used as part of its automated driving system and such software has been updated to the latest available version within thirty days of the release of any such updated version;

(5) is a zero-emissions vehicle, unless the vehicle has a maximum design loaded weight of more than or equal to eight thousand five hundred pounds; and

(6) is clearly marked as an autonomous vehicle in a manner approved by the Registrar; and

(7) Has a system that captures and stores such data as the Department deems necessary through rules promulgated in accordance with the provisions of chapter thirty A, after consultation with the Registrar.  Any such system must be open-source and based on common standards, with an operating system that has been made public so that components performing the same function can be readily substituted or provided by multiple providers.  The data captured and stored by such system shall include, but not be limited to, real-time distance traveled and real-time number of passengers.  Data relating to real-time distance traveled and real-time number of passengers shall be stored, with the capability of being cross-referenced, for a reasonable time period as established by the Department, provided that such period shall not exceed eighteen months.  Data relating to safety shall be stored permanently.

In issuing any regulations setting requirements for data collection from autonomous vehicles, the Department shall take all necessary steps:

(A) To protect the privacy of individuals including, but not limited to, the operators and passengers of autonomous vehicles; and

(B) To ensure the security of the data-collection system, the resistance of the system to tampering, and the accuracy of the data captured and stored by the system.

Such steps shall include limiting the availability of any sensitive data to the public.

Section 63C. Level three and autonomous vehicle testing and deployment

(a) A manufacturer or operator may test level three or autonomous vehicles on the public ways of the commonwealth or may test, deploy, or sell or lease for deployment autonomous vehicles for use on the public ways of the commonwealth only if the manufacturer or operator has been certified by the Registrar.

(b) A manufacturer or operator may apply to the Registrar for certification under this section. The application shall be in the form prescribed by the Registrar in consultation with the Department. The application shall establish that:

(1) The level three vehicle or autonomous vehicle and the automated driving system meet all applicable requirements of section 63b of this chapter; and

(2) The level three vehicle or autonomous vehicle shall be operated only in accordance with Section 63D of this chapter.

(c) The Registrar, in consultation with the Department, shall promulgate rules in accordance with the provisions of chapter thirty A, for the testing of level three vehicles and the testing, deployment, and sale or leasing for deployment of autonomous vehicles. The rules shall establish standards for equipment used in and for the performance of level three and autonomous vehicles that the Department determines are necessary to ensure the safe operation of such vehicles on the public ways of the commonwealth and set inspection requirements specific to such vehicles. The rules shall include a waiver for autonomous vehicles of such inspection requirements as the Registrar deems appropriate in accordance with section seven A of chapter ninety. The rules shall also provide for sharing of the data captured and stored in accordance with Section 63B(a)(5), including providing the public with open access to such data, subject to such safeguards as the Registrar deems necessary for the protection of privacy. The rules may include, but need not be limited to, the following:

(1) The establishment of a pilot program for testing level three or autonomous vehicles, or the phased integration and deployment of autonomous vehicles;

(2) Limits on the number of level three or autonomous vehicles that may be tested or, in the case of autonomous vehicles, deployed at any given time on the public ways of the commonwealth;

(3) Special license requirements relating to the testing or deployment of autonomous vehicles appropriate to the class of vehicle based on weight rating or number of passengers; and

(4) Criteria for revocation, suspension, or denial of an application or certification under this section.

(d) A manufacturer or operator shall submit proof of liability insurance with an application made under this section.  Such insurance shall provide coverage in an amount to be established by the Registrar.

(e) The Registrar may certify a manufacturer or operator under this section only if the Registrar determines that the level three or autonomous vehicles covered by the certification are safe to operate on the public ways of the commonwealth.  Such determination shall include at a minimum a finding that the level three or autonomous vehicles covered by the certification are in compliance with all federal standards and regulations including, but not limited to, the Performance Guidance set forth by the National Highway Traffic Safety Administration and applicable Federal Motor Vehicle Safety Standards.

(f) The Registrar by rule shall establish fees for applications made under this section. The fees shall be in amounts adequate to pay all administrative costs incurred by the department in administering this part.

Section 63D. Operation of level three and autonomous vehicles

(a) A level three vehicle from a certified manufacturer may be tested on the public ways of the commonwealth, but only if a passenger with the proper license for the type of motor vehicle being tested is present and is adequately trained to pilot and monitor the vehicle as a fallback-ready human driver.

(b) If the Registrar should provide by rule that autonomous vehicles may be tested or deployed on the public ways of the commonwealth without a passenger present, no autonomous vehicle, other than freight or emergency vehicles, may travel more than one mile continuously without a passenger present in the vehicle.

(c) Notwithstanding sections seventeen and eighteen of chapter ninety of the General Laws, or any general or special law, or regulation to the contrary, the speed limit for autonomous vehicles shall be twenty-five miles per hour on public ways in a thickly settled or business district, as defined in section one of said chapter ninety, fifteen miles per hour within a duly established school zone when children are present, and the same as the prevailing speed limit on all other public ways.

(d) Notwithstanding the other provisions of this chapter, any municipality with a population density greater than or equal to four thousand five hundred people per square mile shall have the power to limit autonomous vehicles to only motor vehicles providing public transportation as set forth in section one of chapter one hundred fifty nine A, transportation network vehicles as set forth in section one of chapter one hundred fifty nine A½ provided that for purposes of this subsection, “driver” shall include the operator of an autonomous vehicle, or vehicles carrying an average of 1.8 or more passengers per vehicle mile traveled as calculated on a monthly basis per vehicle or fleet of commonly-owned vehicles.  Any such limitation need not apply to an entire municipality but may be applied to any geographic area or areas within a municipality, as the municipality deems suitable.

(e) Whoever violates subsection sections 63A through 63D of this chapter shall be subject to a fine of not more than five hundred dollars for a first violation, one thousand dollars for a second violation, and $2,500 for every violation thereafter.  Any person who receives a citation for violating any provision of these sections may contest such citation pursuant to section three of chapter ninety C.

Section 63E. Road usage charge on autonomous vehicles

(a) A road usage charge is imposed on autonomous vehicles that operate on the public ways within this state pursuant to this Chapter.

(b) The Department shall, in accordance with the provisions of chapter thirty A, promulgate rules regarding the computation, assessment, and collection of the road usage charge on autonomous vehicles.

(c) In promulgating rules regarding the computation of the road usage charge on autonomous vehicles, the Department shall:

(1) Establish a base per-mile rate on autonomous vehicles of no less than 2.5 cents per mile, provided that the minimum rate imposed under this paragraph shall be adjusted at the beginning of each calendar year, by the percentage, if any, by which the consumer price index, as defined in section 1 of the Internal Revenue Code, pursuant to 26 U.S.C. section 1, for the preceding year exceeds the consumer price index for the calendar year that ends before such preceding year;

(2) Allow for a reduction in the base per-mile rate on autonomous vehicles owned and operated by the commonwealth or by any city or town within the commonwealth;

(3) Allow for reductions in the base per-mile rate on autonomous vehicles for each passenger in an autonomous vehicle per mile;

(4) Allow for reductions in the base per-mile rate on autonomous vehicles for each mile traveled during off-peak travel hours as defined by the Department;

(5) Allow for reductions in the base per-mile rate on autonomous vehicles for each mile traveled in specified geographic areas where no or few public transit options are available;

(6) Allow for reductions in the base per-mile rate on autonomous vehicles for operators whose personal income, as documented by tax returns or other credible evidence, falls below a threshold established by regulation;

(7) Impose an increased per-mile rate on autonomous vehicles for each mile traveled without a passenger;

(8) Impose an increased per-mile rate or a tiered system of increased per-mile rates on autonomous vehicles with a weight greater than or equal to four thousand pounds (taking into account any motor vehicle fuels excise tax paid for vehicles over eight thousand five hundred pounds);

(9) Impose an increased per-mile rate on autonomous vehicles for each mile traveled between eight am and eight pm within a severe congestion zone as designated by the Department through rules promulgated under this chapter; and

(10) Create such exemptions as are necessary to ensure that the road usage charge is reasonably related to the services provided by the Department, including, but not limited to, exempting travel on private property and out-of-state travel.

Section 63F. Allocation of road usage charge revenue

(a) All road usage charge revenue collected from autonomous vehicles pursuant to Section 63E shall be credited to the commonwealth Transportation Fund.

SECTION 2. This act shall take effect upon its passage.