Monitoring the Session

SB 2425

Nichols’ Driverless Car Rules Carve Out Whole Ride-Hail Companies

Did not pass

Verdict: Smells

SmellsReviewed
Sen. Robert NicholsRSenate 3
Why it's charged
Carve-out

THE TEXT

“This section does not apply to a transportation network company that uses automated motor vehicles to provide digitally prearranged rides through the company's digital network.”

Bill text, introduced version (I)

The exemption is written for the whole ride-hail company once it uses any driverless cars, not just for the driverless rides, so the company's human-driver side could also escape this section. That is a favor to one kind of business inside a general self-driving bill.

Carve-out

Reviewed · Nov 1, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the regulation of automated motor vehicles; creating a criminal offense.

Caption from analyzed text · version I.

Summary

Use driverless cars and the whole company is out of this section. Cities can’t add rules.

The bill rewrites Texas rules for self-driving cars so that any company running them without a human driver must get a no-expiration authorization from the Texas Department of Motor Vehicles and file an emergency-response plan with the Department of Public Safety. It touches self-driving car operators, ride-hail companies, police and fire responders, and cities, which are barred from imposing a franchise or other rules on self-driving cars. On the ground, driverless operation without that authorization becomes a Class B misdemeanor offense counted per vehicle per day, the authorization holder gets the traffic tickets, and ride-hail companies may use driverless cars with some of their usual rules waived.

Labels

Labels: CREATES AN OFFENSE. The caption of the graded version (introduced) reads: “relating to the regulation of automated motor vehicles; creating a criminal offense.”GOT HALFWAY. Passed the Senate on Apr 16, 2025. Died in the House: voted out of the Delivery of Government Efficiency committee 9-0, no floor vote.

Receipt

The receipt

89R-SB2425 · 2025-03-13

SOLD BY

+ 1 coauthor

ITEM

relating to the regulation of automated motor vehicles; creating a criminal offense.

WHAT IT DOES

Use driverless cars and the whole company is out of this section. Cities can’t add rules.

The bill rewrites Texas rules for self-driving cars so that any company running them without a human driver must get a no-expiration authorization from the Texas Department of Motor Vehicles and file an emergency-response plan with the Department of Public Safety. It touches self-driving car operators, ride-hail companies, police and fire responders, and cities, which are barred from imposing a franchise or other rules on self-driving cars. On the ground, driverless operation without that authorization becomes a Class B misdemeanor offense counted per vehicle per day, the authorization holder gets the traffic tickets, and ride-hail companies may use driverless cars with some of their usual rules waived.

CHARGES

[x] CARVE-OUTanalysis confidence 50%

THE TEXT

“This section does not apply to a transportation network company that uses automated motor vehicles to provide digitally prearranged rides through the company's digital network.”

Bill text, introduced version (I)

The exemption is written for the whole ride-hail company once it uses any driverless cars, not just for the driverless rides, so the company's human-driver side could also escape this section. That is a favor to one kind of business inside a general self-driving bill.

TOTAL

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · April 29, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

  1. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to Transportation
  5. Scheduled for public hearing on . . .
  6. Considered in public hearing
  7. Testimony taken in committee
  8. Vote taken in committee
  9. Reported favorably as substituted
  10. Committee report printed and distributed
  11. Placed on intent calendar
  12. Co-author authorized
  13. Rules suspended-Regular order of business
  14. Read 2nd time
  15. Vote recorded in Journal
  16. Amendment(s) offered FA1 Nichols
  17. Amended
  18. Vote recorded in Journal
  19. Passed to engrossment as amended
  20. Vote recorded in Journal
  21. Three day rule suspended
  22. Record vote
  23. Read 3rd time
  24. Passed
  25. Record vote
  26. Reported engrossed
  27. Received from the Senate
  28. Read first time
  29. Referred to Delivery of Government Efficiency
  30. Scheduled for public hearing on . . .
  31. Considered in public hearing
  32. Testimony taken/registration(s) recorded in committee
  33. Left pending in committee
  34. Considered in formal meeting
  35. Reported favorably w/o amendment(s)
  36. Comte report filed with Committee Coordinator
  37. Committee report distributed
  38. Committee report sent to Calendars
  39. Considered in Calendars
  40. Placed on General State Calendar
FILED UNDER

No verified beat found.

SIGNED FOR BY

Senate · 30 yea · 1 nay

Sources

Senate: Final passage · Apr 16, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 2, 2024 to Mar 25, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

James I Perkins$25,000.00
Advanced Drainage Systems Inc. PAC$10,000.00

Advanced Drainage Systems Inc. PAC

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 2 other sitting lawmakers.

Derived recipient stock · Dec 5, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Dec 5, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100965387.

Texas REALTORS Political Action Committee$10,000.00

Texas REALTORS Political Action Committee

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Dec 5, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100965387.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Advanced Drainage Systems Inc. PAC

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 2 other sitting lawmakers.

Derived recipient stock · Dec 5, 2024 to Oct 22, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Dec 5, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100965387.

×

Texas REALTORS Political Action Committee

$10,000.00

Cash
$10,000.00
Paid by others
$0.00
Total
$10,000.00

Also funds 140 other sitting lawmakers.

Derived recipient stock · Jul 2, 2024 to Oct 24, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · on Dec 5, 2024. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 100965387.

Votes3

Senate Apr 16, 2025

Yea
30
Nay
1
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

The bill was read third time and was passed by the following vote: Yeas 30, Nays 1. (Same as previous roll call)

Published stock of positions for this vote, except where marked derived.

  • Yea: 30 (published)
  • Nay: 1 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Apr 16, 2025

Yea
30
Nay
1
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

Senator Nichols moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that CSSB 2425 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 30, Nays 1.

Published stock of positions for this vote, except where marked derived.

  • Yea: 30 (published)
  • Nay: 1 (published)
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate Apr 16, 2025

Yea
Not printed
Nay
Not printed
Present, not voting
Not printed
Absent
Not printed
Excused
Not printed
Names

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

CSSB 2425 as amended was passed to engrossment by a viva voce vote.

Published stock of positions for this vote, except where marked derived.

  • Yea: Not printed
  • Nay: Not printed
  • Present, not voting: Not printed
  • Absent: Not printed
  • Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Witnesses39
For
26
Against
3
On
10
Names

For

  • AAA Texas1 registration
  • Alliance for Automotive Innovation1 registration
  • Autonomous Vehicle Industry Association1 registration
  • City of Fort Worth1 registration
  • City of Houston1 registration
  • Farm & City1 registration
  • Farm&City1 registration
  • Ford Motor Company1 registration
  • General Motors, LLC1 registration
  • GM1 registration
  • Kodiak1 registration
  • Kodiak Robotics1 registration
  • Self1 registration
  • Sheriff Association of Texas1 registration
  • Stack AV1 registration
  • TechNet1 registration
  • Texas Public Policy Foundation2 registrations
  • Texas Trucking Association1 registration
  • TORC Robotics1 registration
  • Uber Technologies, Inc.2 registrations
  • Vision Zero Texas1 registration
  • Waymo2 registrations
  • Zoox1 registration

Against

  • Self; Texas TURF, Texans for Toll-free Highways, We the People - Liberty in Action1 registration
  • Teamsters Local 7451 registration
  • Texas TURF and Texans for Toll Free Highways1 registration

On

  • Autonomous Vehicle Industry Association1 registration
  • Bot Auto1 registration
  • Stack AV1 registration
  • Tesla1 registration
  • Tesla, Inc.1 registration
  • Texas Department of Licensing and Regulation1 registration
  • Texas Trial Lawyers Association1 registration
  • TX Dept of Motor Vehicles1 registration
  • TX Dept. of Motor Vehicles1 registration
  • Volkswagen ADMT1 registration
Sources

39 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No significant fiscal implication to the State is anticipated.

LBB estimate · fiscal note version E · source

Sources

Fiscal note · version E · April 29, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas Senate · Filed Mar 13, 2025

05/26/2025 H Placed on General State Calendar

Texas Legislature Online · Introduced · Senate Committee Report · Engrossed · House Committee Report

Data snapshot Nov 1, 2026 at 2:11 PM CST. Grades, charges, quotes and corrections follow the published record.

Coauthors
Sponsors

House committee · Delivery of Government Efficiency · Committee vote 9 aye, 0 nay, 4 absent · Out of committee

Senate committee · Transportation · Committee vote 8 aye, 0 nay, 1 absent · Out of committee

Subjects

Civil Remedies & Liabilities

Vehicles & Traffic--General

Vehicles & Traffic--Rules of Road

Vehicles & Traffic--Vehicle Registration

COMPUTERS & SOFTWARE

VEHICLES FOR HIRE

ADMINISTRATIVE HEARINGS, STATE OFFICE OF

MOTOR VEHICLES, TEXAS DEPARTMENT OF

PUBLIC SAFETY COMMISSION

PUBLIC SAFETY, DEPARTMENT OF

Text

The text as introduced · 2,889 words

89R16277 JRR-F

By: Nichols
S.B. No. 2425

A BILL TO BE ENTITLED

AN ACT

relating to the regulation of automated motor vehicles; creating a

criminal offense.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter J, Chapter 545, Transportation Code,

is amended to read as follows:

SUBCHAPTER J. OPERATION OF AUTOMATED MOTOR VEHICLES

Sec. 545.451. DEFINITIONS. In this subchapter:

(1) "Automated driving system" means hardware and

software that, when installed on a motor vehicle and engaged, are

collectively capable of performing[ , without any intervention or

supervision by a human operator:

[ (A) all aspects of ] the [ entire ] dynamic driving

task for the vehicle on a sustained basis[ ; and

[ (B) any fallback maneuvers necessary to respond

to a failure of the system ].

(2) "Automated motor vehicle" means a motor vehicle on

which an automated driving system is installed that is:

(A) designed to enable either driverless

operation under routine or normal operating conditions within the

system's operational design domain or operation by a human driver;

and

(B) capable of being operated with Level 4

automation or Level 5 automation .

(3) "Authorization holder" means a person granted

authorization by the department under Section 545.456 to operate

one or more automated motor vehicles.

(4) "Board" means the board of the Texas Department of

Motor Vehicles.

(5) "Department," notwithstanding Section 541.002,

means the Texas Department of Motor Vehicles.

(6) "Dynamic [ "Entire dynamic ] driving task" means the

real-time operational and tactical functions required to operate

[ aspects of operating ] a vehicle. The term:

(A) includes:

(i) operational functions [ aspects ],

including steering, braking, accelerating, and monitoring the

vehicle and the roadway; and

(ii) tactical functions [ aspects ],

including responding to events, determining when to change lanes,

turning, and using signals[ , and other related actions ]; and

(B) does not include strategic aspects,

including determining destinations or waypoints.

(7) [ (4) ] "Human driver [ operator ]" means a natural

person in an automated motor vehicle who controls all or part of the

[ entire ] dynamic driving task.

(8) "Level 4 automation" means a standard of

automation meeting the criteria for Level 4 specified in the

Society of Automotive Engineers International Standard J3016

(April 2021).

(9) "Level 5 automation" means a standard of

automation meeting the criteria for Level 5 specified in the

Society of Automotive Engineers International Standard J3016

(April 2021).

(10) "Minimal risk condition" means a stable and

stopped condition of an automated motor vehicle at a position with

an acceptable risk given the situation when the decision is taken to

enter the condition or, if an acceptable risk is not attainable, the

position with the lowest risk.

(11) "Operational design domain" means operating

conditions under which an automated driving system or feature of

the system is specifically designed to function, including

environmental, geographical, and time-of-day restrictions and the

requisite presence or absence of certain traffic or roadway

characteristics.

(12) [ (5) ] "Owner" has the meaning assigned by Section

502.001.

Sec. 545.452. PROHIBITIONS ON [ EXCLUSIVE ] REGULATION OF THE

OPERATION OF AUTOMATED MOTOR VEHICLES OR [ AND ] AUTOMATED DRIVING

SYSTEMS BY STATE AGENCY OR POLITICAL SUBDIVISION . (a) A state

agency may not impose a regulation that discriminates against

[ Unless otherwise provided by this subchapter, the operation of

automated motor vehicles, including any commercial use, and

automated driving systems are governed exclusively by ]:

(1) a person operating an automated motor vehicle

[ this subchapter ]; or [ and ]

(2) an automated motor vehicle relative to other types

of motor vehicles or with respect to road usage [ Section 547.618 ].

(b) A political subdivision of this state [ or a state

agency ] may not impose a franchise or other regulation related to

the operation of an automated motor vehicle or automated driving

system.

Sec. 545.453. RULES. The board may adopt rules necessary to

administer this subchapter.

Sec. 545.454. OPERATOR OF AUTOMATED MOTOR VEHICLE. (a)

When an automated driving system installed on an automated [ a ]

motor vehicle is engaged , [ :

[ (1) ] the authorization holder for [ owner of ] the

automated motor vehicle:

(1) [ driving system ] is considered the operator of the

[ automated motor ] vehicle [ solely ] for the purpose of assessing

compliance with applicable traffic or motor vehicle laws,

regardless of whether the person is physically present in the

vehicle while the vehicle is operating; and

(2) shall be issued any citation for a violation of

traffic or motor vehicle laws related to [ the automated driving

system is considered to be licensed to operate ] the vehicle.

(b) Notwithstanding any other law, neither a licensed human

driver nor a license issued under Chapter 521 or 522 [ operator ] is

[ not ] required to operate an automated [ a ] motor vehicle if the [ an ]

automated driving system installed on the vehicle is engaged.

Sec. 545.455 [ 545.454 ]. AUTOMATED MOTOR VEHICLE

OPERATION ; OFFENSE . (a) Any vehicle equipped with an automated

driving system may operate in this state, provided that an [ An ]

automated motor vehicle may operate in this state with the

automated driving system engaged, regardless of whether a human

driver [ operator ] is physically present in the automated motor

vehicle.

(b) A person may not operate an [ An ] automated motor vehicle

[ may not operate ] on a highway or street in this state without a

human driver [ with the automated driving system engaged ] unless :

(1) the person receives and maintains authorization to

operate automated motor vehicles from the department under Section

545.456; and

(2) the Department of Public Safety has been provided,

in the form and manner prescribed by rule of the Public Safety

Commission, a plan specifying how a person who provides

firefighting, law enforcement, ambulance, medical, or other

emergency services should interact with the automated motor vehicle

during the provision of those services, including:

(A) how to communicate with a fleet support

specialist who is available during the period in which the vehicle

is in operation;

(B) how to safely remove the vehicle from the

roadway and safely tow the vehicle;

(C) how to recognize whether the vehicle is being

operated with the automated driving system engaged; and

(D) any additional information the person or the

manufacturer of the vehicle or the automated driving system

considers necessary regarding hazardous conditions or public

safety risks associated with the operation of the vehicle.

(c) A person commits an offense if the person operates an

automated motor vehicle in violation of Subsection (b). An offense

under this subsection is a Class B misdemeanor. If a corporation, an

association, a limited liability company, or another business

entity is convicted of an offense under this subsection, the entity

shall be punished in accordance with Section 12.51, Penal Code.

(d) For purposes of Subsection (c), each day the person

operates an automated motor vehicle in violation of Subsection (b)

constitutes a separate offense and each vehicle operated by the

person in violation of Subsection (b) constitutes a separate

offense.

Sec. 545.456. AUTHORIZATION TO OPERATE AUTOMATED MOTOR

VEHICLE. (a) The board by rule shall prescribe the form and manner

by which a person may apply to the department for authorization to

operate automated motor vehicles on highways and streets in this

state without a human driver.

(b) The rules adopted under Subsection (a) must require a

person to provide the following to the department:

(1) a written statement by the person that includes:

(A) the person's contact information; and

(B) vehicle descriptive information as

prescribed by the department;

(2) a written statement by the person or the

manufacturer of the vehicle or the automated driving system

acknowledging that each automated motor [ the ] vehicle is:

(A) [ (1) ] capable of operating in compliance

with applicable traffic and motor vehicle laws of this state,

subject to this subchapter;

(B) [ (2) ] equipped with a recording device, as

defined by Section 547.615(a), installed by the manufacturer of the

automated motor vehicle or automated driving system;

(C) [ (3) ] equipped with an automated driving

system in compliance with applicable federal law , including [ and ]

federal motor vehicle safety standards;

(D) capable of achieving a minimal risk condition

if a failure of the automated driving system occurs that renders the

system unable to perform the dynamic driving task relevant to its

intended operational design domain;

(E) [ (4) ] registered and titled in accordance

with the laws of this state; and

(F) [ (5) ] covered by motor vehicle liability

coverage or self-insurance in an amount equal to or greater than the

amount of coverage that is required under the laws of this state ;

and

(3) a certification acknowledging that the Department

of Public Safety has been provided the plan required by Section

545.455(b)(2).

(c) On receipt of an application under this section and

verifying that the application complies with the rules adopted

under Subsection (a), including satisfying the requirements

described by Subsection (b), the department shall approve the

application and issue a unique operating number to the applicant

authorizing the operation of automated motor vehicles on highways

and streets in this state without a human driver.

(d) An authorization issued by the department under this

section does not expire and remains active unless suspended,

revoked, or canceled by the department.

(e) The person issued an authorization under this section

shall provide to the department in the form and manner prescribed by

the department an update to a document described by Subsection

(b)(1), (2), or (3) not later than the 30th day after the date

information in the document changes.

(f) The department may immediately suspend, revoke, or

cancel the authorization issued under this section if the

authorization holder fails to comply with:

(1) Subsection (e); or

(2) department requests for an updated or current

document described by Subsection (b)(1), (2), or (3).

(g) The department shall promptly rescind a suspension,

revocation, or cancellation imposed under Subsection (f) on

receiving the updated or current document as requested by the

department.

(h) A determination under Subsection (f) is not a contested

case under Chapter 2001, Government Code .

Sec. 545.457 [ 545.455 ]. DUTIES FOLLOWING COLLISION

INVOLVING AUTOMATED MOTOR VEHICLE. In the event of a collision

involving an automated motor vehicle, the automated motor vehicle ,

a person on behalf of the automated motor vehicle, or any human

driver [ operator ] of the automated motor vehicle shall comply with

Chapter 550.

Sec. 545.458. APPLICABILITY OF COMMERCIAL MOTOR VEHICLES

LAWS TO AUTOMATED MOTOR VEHICLE. (a) In this section, "commercial

motor vehicle" has the meaning assigned by Section 644.001.

(b) An automated motor vehicle that is a commercial motor

vehicle shall operate in accordance with Subtitle F and any other

applicable laws or regulations of this state or a political

subdivision of this state governing the operation of a commercial

motor vehicle, except that any provision of a commercial motor

vehicle law that by its nature reasonably applies only to a human

driver does not apply to an automated motor vehicle operating with

the automated driving system engaged.

Sec. 545.459. ENFORCEMENT. (a) If the department

determines that an automated motor vehicle is not in safe

operational condition and the operation of the vehicle on a highway

or street in this state endangers the public, the department shall

provide to the authorization holder for the vehicle a notice of

intent to:

(1) suspend, revoke, or cancel the authorization

issued under this subchapter for the vehicle; or

(2) impose restrictions on the operation of the

vehicle.

(b) A notice of intent under Subsection (a) must:

(1) include a summary of the department's

determination and evidence supporting the determination;

(2) provide the authorization holder with a reasonable

period to:

(A) correct the issues identified in the

department's determination; and

(B) provide to the department the certification

described by Subsection (c)(2); and

(3) specify which enforcement actions described by

Subsections (a)(1) and (2) the department will take if the

authorization holder fails to complete the actions described by

Subdivision (2) within the specified period.

(c) Before the expiration of the period specified in a

notice of intent provided under Subsection (a), the authorization

holder shall:

(1) ensure the issues identified by the department in

the notice are corrected; and

(2) provide to the department, in the form and manner

prescribed by the department, a certification acknowledging that

the issues identified by the department in the notice have been

corrected.

(d) The department may extend the period specified in a

notice provided under Subsection (a) on a written request for an

extension that the department determines is reasonable.

(e) A certification provided under Subsection (c) must

include an explanation of how the issues identified by the

department in the notice of intent have been corrected, such as

identifying specific adjustments made to the automated driving

system or operational measures implemented.

(f) If the authorization holder fails to comply with

Subsection (c) or the department determines that the certification

provided to the department under that subsection is inaccurate, the

department shall:

(1) as specified in the notice of intent:

(A) suspend, revoke, or cancel the authorization

issued under this subchapter for the vehicle; or

(B) impose restrictions on the operation of the

vehicle; and

(2) notify the authorization holder of the action

taken by the department under Subdivision (1).

(g) The department shall promptly rescind a suspension,

revocation, or cancellation imposed under Subsection (f) or remove

a restriction imposed under that subsection if:

(1) the authorization holder subsequently takes the

actions required by Subsections (c)(1) and (2); and

(2) the department does not determine that the

certification provided under Subdivision (1) is inaccurate.

(h) An authorization holder aggrieved by an action of the

department under Subsection (f) may submit a written request for a

hearing not later than the 10th day after the date of the

department's action under that subsection. The department shall

set a hearing not later than the fifth day after the date an

authorization holder requests a hearing under this subsection and

provide the authorization holder notice of the hearing and the

opportunity to present evidence at the hearing. A hearing under

this subsection must be conducted by an administrative law judge of

the State Office of Administrative Hearings. Chapter 2001,

Government Code, applies to a proceeding under this subsection.

(i) Except as provided by Section 545.456, this section

provides the exclusive means by which the department may:

(1) suspend, revoke, or cancel an authorization issued

under this subchapter for an automated motor vehicle; or

(2) otherwise restrict the operation of an automated

motor vehicle.

[ Sec. 545.456. VEHICLE CLASSIFICATION. An owner as defined

by Section 502.001(31) may identify the vehicle to the department

as an automated motor vehicle or an automated driving system. ]

SECTION 2. Section 2402.001, Occupations Code, is amended

by amending Subdivision (1) and adding Subdivision (1-a) to read as

follows:

(1) "Automated driving system" and "automated motor

vehicle" have the meanings assigned by Section 545.451,

Transportation Code.

(1-a) "Department" means the Texas Department of

Licensing and Regulation.

SECTION 3. Subchapter A, Chapter 2402, Occupations Code, is

amended by adding Section 2402.005 to read as follows:

Sec. 2402.005. APPLICABILITY TO AUTOMATED MOTOR VEHICLES.

(a) A transportation network company holding a permit under this

chapter may use automated motor vehicles to provide digitally

prearranged rides through the company's digital network.

(b) A reference in this chapter or a rule adopted under this

chapter to a "driver" includes an automated motor vehicle, except

that a provision of this chapter or a rule adopted under this

chapter that by its nature reasonably applies only to a human driver

does not apply to an automated motor vehicle operating with the

automated driving system engaged.

SECTION 4. Section 2402.111, Occupations Code, is amended

by adding Subsection (d) to read as follows:

(d) Notwithstanding Subsection (a)(2)(A), an automated

motor vehicle that is used to provide digitally prearranged rides

is not required to have four doors.

SECTION 5. Section 2402.113, Occupations Code, is amended

by adding Subsection (e) to read as follows:

(e) This section does not apply to a transportation network

company that uses automated motor vehicles to provide digitally

prearranged rides through the company's digital network.

SECTION 6. (a) Not later than December 1, 2025:

(1) the board of the Texas Department of Motor

Vehicles shall adopt the rules required by Subchapter J, Chapter

545, Transportation Code, as amended by this Act; and

(2) the Public Safety Commission shall adopt the rule

required by Section 545.455(b)(2), Transportation Code, as added by

this Act.

(b) A person is not required to comply with Subchapter J,

Chapter 545, Transportation Code, as amended by this Act, until the

90th day after the effective date of rules adopted by the Public

Safety Commission and the board of the Texas Department of Motor

Vehicles under Subsection (a) of this section.

SECTION 7. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.