Autonomous vehicles.

Senator Grayson's autonomous vehicle legislation redefines California's regulatory framework for self-driving cars, expanding oversight to include Level 2 automation while accelerating zero-emission requirements. The bill modifies the Vehicle Code's definition of autonomous vehicles to encompass systems capable of automated lane changes, while specifically excluding driver assistance features that cannot maintain sustained automated steering.

The legislation establishes new operational requirements and enforcement mechanisms. Manufacturers must equip autonomous vehicles produced after January 2028 with electronic systems to detect unattended children or pets and alert owners or emergency responders. The bill prohibits unauthorized modifications that enable autonomous functionality, imposing fines up to $10,000 and potential imprisonment for violations. Additionally, all autonomous vehicles with model year 2028 or later must be zero-emission vehicles to receive deployment permits, moving this requirement forward from the previous 2031 timeline.

To fund increased oversight, the bill creates the Autonomous Vehicle Regulatory Fund and authorizes the Department of Motor Vehicles to collect fees covering regulatory costs. The DMV must develop comprehensive regulations for training, testing, and enforcement, including potential special licensing requirements for autonomous vehicle operators. The department must hold public hearings before approving regulations for fully autonomous vehicles operating without human operators and provide 30-day notice before accepting applications under new rules.

The legislation maintains existing insurance requirements, mandating manufacturers secure $5 million in coverage through insurance, bonds, or self-insurance before testing vehicles on public roads. While local agencies may incur costs implementing new criminal provisions, the bill specifies these expenses do not require state reimbursement under California's Constitution.