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SB 949

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, in sales and use tax, further providing for exclusions from tax; and establishing a fueling opportunities for the revitalization, growth and efficiency of steel tax credit.

2025-2026 Regular Session Introduced by Jay Costa and 8 co-sponsors

Maryland authorizes fully autonomous vehicles (SAE Level 4/5) on highways without a driver, with a regulatory framework, pre-operation plans, ADS-as-operator rules, and labeling.

Referred to Finance
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Bill Summary · SB 949

SB 949 — Vehicle Laws — Fully Autonomous Vehicles (Maryland)

Status & Key Dates
- Introduced: January 28, 2025 (Senators Love, Benson, Gile, Hettleman, Lam, Muse, Smith)
- Committee: Judicial Proceedings (hearing scheduled 3/05/2025 at 1:00 p.m.)
- Effective date (if enacted): October 1, 2025
- Companion bill: HB 1256

Purpose
- Authorizes and establishes a regulatory framework for operation of “fully autonomous vehicles” (FAVs) on Maryland highways without a human driver, by setting definitions, pre‑operation requirements, how Maryland vehicle law applies, and related administrative responsibilities.

Key definitions
- Automated driving system (ADS): hardware + software capable of performing the entire dynamic driving task on a sustained basis.
- Dynamic driving task: real‑time operational functions (steering, acceleration/deceleration, environment monitoring, object/event response, maneuver planning, signaling).
- Fully autonomous vehicle (FAV): motor vehicle equipped with an ADS designed to function without a human driver (includes SAE Level 4 or 5 systems).
- Minimal risk condition: a low‑risk state the vehicle achieves if it cannot safely continue the trip.

Major provisions
- Authorization: A FAV may operate on State highways without a human driver if it:
- Achieves a minimal risk condition upon ADS failure affecting its operational design domain;
- Can operate in accordance with Maryland Vehicle Law (unless MVA grants an exemption); and
- Bears the manufacturer’s certification label showing compliance with applicable Federal Motor Vehicle Safety Standards (including NHTSA exemptions where applicable).
- Pre‑operation filings:
- A person must submit a law enforcement interaction plan to the Motor Vehicle Administration (MVA) before operating a FAV without a human driver. The plan must explain:
- How to contact a fleet support specialist during operation,
- Procedures to safely remove/tow the vehicle from a highway,
- How to recognize whether the vehicle is operating autonomously,
- Any other manufacturer/owner/MVA‑required safety or hazard information.
- The vehicle owner must submit proof of required security (insurance) to MVA on the form provided.
- Titles/registration: Motor vehicle title and registration must identify the vehicle as a “fully autonomous vehicle.”
- Application of Maryland Vehicle Law:
- When ADS is engaged, the ADS is treated as the vehicle operator for purposes of the Maryland Vehicle Law, is deemed to satisfy electronically physical acts required of a driver, and is treated as licensed to operate the vehicle.
- A human may operate the FAV when ADS is disengaged; a person must take over if the ADS requests intervention.
- For crashes involving FAVs, reporting requirements under Title 20 apply and must be satisfied within 15 days (unless an extension is granted).
- Commercial use: Transportation network companies, for‑hire, and other ground passenger carriers may use FAVs; statutory provisions that apply only to human drivers do not apply to an ADS operator used by these companies.
- Preemption: State agencies and local political subdivisions may not prohibit operation of FAVs on highways under their jurisdiction.

Administration, enforcement & fiscal effects
- MVA: can implement the bill’s requirements using existing resources. MVA will receive and process law enforcement interaction plans and insurance proofs.
- Law enforcement: State and local agencies are expected to adapt enforcement procedures using existing resources.
- Fiscal impact: No material effect on State or local revenues; small business impact described as potentially meaningful (e.g., fleets, AV converters, insurers, maintenance/towing providers).
- Fiscal note prepared by Department of Legislative Services.

Who is affected
- Vehicle manufacturers and converters (to meet certification/labeling and ADS standards)
- Vehicle owners/operators and fleet operators (must file plans and proof of insurance)
- Transportation network and for‑hire companies (may deploy FAVs)
- MVA and state/local law enforcement (administration and enforcement responsibilities)
- Insurers and businesses involved in towing, maintenance, and support services

Procedural status & next steps
- Referred to Judicial Proceedings; hearing scheduled 3/05/2025 at 1:00 p.m. If passed by the legislature and signed, the law would take effect October 1, 2025.

Notes
- Bill references federal compliance (FMVSS and NHTSA exemptions) and relies on MVA rulemaking/administrative forms for implementation details.

Compiled from official sources — confirm details with the bill’s official record.

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