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SB2807

Regular Session

Relating to motor vehicles, including automated motor vehicles; creating a criminal offense.

Critical
Medium Cost
Effective:2025-09-01
Enforcing Agencies

Texas Department of Motor Vehicles (TxDMV) • Department of Public Safety (DPS) • Texas Department of Licensing and Regulation (TDLR)

01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025.
  • Agency Rulemaking: TxDMV and DPS must adopt rules regarding application forms and emergency plans by December 1, 2025.
  • Compliance Deadline:
  • Independent Contractor Protections: Immediate (September 1, 2025).
  • AV Authorization & Criminal Penalties: Enforcement begins 90 days after TxDMV and DPS adopt their rules (Projected: March 1, 2026).

Immediate Action Plan

  • 1. Legal: Immediately revise standard Independent Contractor agreements to mandate safety technology, leveraging the new Chapter 644A protections.
  • 2. Operations: Draft the "Emergency Services Interaction Plan" now, focusing on towing and disablement protocols, to be ready for the December 2025 filing window.
  • 3. Compliance: Audit your fleet database to ensure all VINs and insurance certificates are centralized for the impending TxDMV application.
  • 4. Risk Management: Establish a protocol to ensure the "Fleet Support Specialist" line is staffed 24/7/365 whenever vehicles are active.

Operational Changes Required

Contracts

  • Independent Contractor Agreements (All Carriers): You must amend agreements to mandate safety improvements (cameras, speed limiters, lane departure software). Cite Chapter 644A, Transportation Code to shield your organization from employee misclassification claims based on these mandates.
  • Lease/Vendor Agreements (AV Operators): Master Service Agreements must explicitly define the "Authorization Holder." The law assigns liability for citations and regulatory compliance to this specific entity. Ambiguity here creates significant legal exposure.

Hiring/Training

  • Fleet Support Specialist: You must designate and train personnel to serve as "Fleet Support Specialists." These individuals must be accessible to law enforcement and first responders at all times the vehicle is in operation to facilitate towing or disablement.
  • First Responder Protocols: Your operations team must develop training materials or interaction guides for emergency services, detailing how to disable the Automated Driving System (ADS) externally.

Reporting & Record-Keeping

  • TxDMV Authorization: You must file an application listing all vehicle VINs, proof of insurance, and safety certifications before operations begin.
  • DPS Emergency Plan: You must submit a formal "Emergency Services Interaction Plan" to the Department of Public Safety. This document must detail towing protocols and fleet support contact methods.
  • 30-Day Update Rule: You must implement a trigger in your compliance software to notify TxDMV within 30 days of any change in material information (e.g., insurance carrier change, fleet additions/removals).

Fees & Costs

  • Criminal Liability: Operation without authorization is a Class B Misdemeanor. The penalty applies per day of operation, creating a compounding financial and criminal liability for corporate officers.
  • Insurance: AVs used for rideshare/delivery are classified as TNC vehicles for insurance purposes, requiring specific coverage limits under Insurance Code Subchapter B.

Strategic Ambiguities & Considerations

  • "Safe Operational Condition": The statute allows TxDMV to revoke authorization if a vehicle is not in "safe operational condition," but fails to define the metrics for this determination. Watch the rulemaking process for definitions of critical failure rates or accident thresholds.
  • Plan "Form and Manner": DPS has not yet specified the format for the Emergency Interaction Plan. We must monitor the Texas Register to determine if this requires proprietary technical disclosures or simple operational summaries.
  • Remote Support Location: The law implies, but does not explicitly state, that the Fleet Support Specialist can be remote. Rulemaking will confirm if a physical Texas presence is required.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 14, 2025
Passed Senate
Apr 30, 2025
Passed House
May 28, 2025
Signed
Jun 20, 2025
TopicsSafetyVehicles & TrafficVehicles & Traffic--generalCrimesCrimes--miscellaneousOccupational RegulationOccupational Regulation--other Trades & ProfessionsVehicles & Traffic--rules of RoadAdministrative Hearings, State Office ofMotor Vehicles, Texas Department ofPublic Safety CommissionTransportation, Texas Department of
03

Official Analysis

View HRO AnalysisView All Bill Documents

BILL ANALYSIS

Senate Research Center

S.B. 2807

89R19455 TYPED

By: Hagenbuch

Transportation

4/16/2025

As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Purpose of the legislation: to remove a serious impediment to the deployment of safety technology and practices to improve safety for motor carriers with independent contractors.

More and more motor carriers are deploying safety equipment, technologies, and operational practices to reduce accident exposure and improve their overall safety performance. And more and more shippers are seeking motor carrier partners with these safety improvements in their equipment. These technologies included lane departure warning systems, video-based onboard safety monitoring systems, automatic emergency braking systems, and air disc brakes. These protocols include using the data generated by the video-based onboard safety monitoring system for driver coaching.

Requiring safety devices, monitoring safety performance, and coaching drivers is all fine for motor carriers with employee drivers. But for motor carriers with independent contractors, that kind of involvement can be misconstrued as employer-like control and potentially turn those independent contractors into employee drivers. Those carriers face the unappealing choice of (1) enhancing safety, but taking on significantly more worker misclassification risk or (2) maintaining the classification moat to the potential detriment of the safety of the carrier's driver and the motoring public. From a public policy perspective, this should not be the case.

This narrow, targeted legislation eliminates that false choice by eliminating consideration of a motor carrier's use of safety improvements in determining the driver's classification as an independent contractor or an employee under state law. It allows the motor carrier to proceed with the deployment of safety technologies. That means a carrier with a mix of employee drivers and independent contractors can deploy safety improvements across the board.

The solution does not, however, change any test for determining a worker's status under state law. Nor does the legislation preclude application of any such test. Rather, it simply says that a carrier's pursuit of safety improvements, which are in the public's benefit, is not considered as part of any such test.

As proposed, S.B. 2807 amends current law relating to the considerations when determining whether an operator of a motor vehicle is an employee of a motor carrier or an independent contractor.

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subtitle F, Title 7, Transportation Code by adding Chapter 644A, as follows:

CHAPTER 664A. MOTOR CARRIER SAFETY IMPROVEMENT: EMPLOYMENT STATUS

Sec. 644A.001. DEFINITIONS. Defines "motor carrier" and "motor carrier safety improvement."

Sec. 644A.002. EMPLOYMENT STATUS. Prohibits the deployment, implementation, or use of a motor carrier safety improvement by or as required by a motor carrier or a related entity, including through contract, from being considered when determining whether the operator of a motor vehicle is an employee or joint employee of the motor carrier or an independent contractor for purposes of state law.

SECTION 2. Effective date: September 1, 2025.

Senate Authors

Sen. Brent HagenbuchRepublican · Primary Author

House Sponsor

Rep. Pat CurryRepublican · Primary Sponsor

Bill Text(with markup)

S.B. No. 2807

Showing first 50k characters.

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

AN ACT
relating to motor vehicles, including 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 operating the vehicle with Level 3
automation, Level 4 automation, or Level 5 automation by
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, regardless of whether the
system is limited to a specific operational design domain[; 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 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 3 automation" means a standard of
automation meeting the criteria for Level 3 specified in the SAE
International Standard J3016 (April 2021).
(9)  "Level 4 automation" means a standard of
automation meeting the criteria for Level 4 specified in the SAE
International Standard J3016 (April 2021).
(10)  "Level 5 automation" means a standard of
automation meeting the criteria for Level 5 specified in the SAE
International Standard J3016 (April 2021).
(11)  "Minimal risk condition" means a stable and
stopped condition to which a person or an automated driving system
may bring an automated motor vehicle to reduce the risk of a
collision when a given trip cannot or should not be continued.
(12)  "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
             [(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; EXEMPTION FROM
CERTAIN TRAFFIC OR MOTOR VEHICLE LAWS. (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.
(c)  The Public Safety Commission by rule may exempt from the
application of a specific traffic or motor vehicle law of this state
automated motor vehicles if the commission determines that the
exemption will not cause a risk to public safety.
       Sec. 545.453.  RULES. The board may adopt rules necessary to
administer this subchapter.
Sec. 545.454.  [OPERATOR OF AUTOMATED MOTOR] VEHICLE
OPERATORS. (a) When an automated driving system installed on a
motor vehicle is engaged, the automated driving system is the
operator of the vehicle, including for purposes of assessing
compliance with applicable traffic or motor vehicle laws.
(b)  When an automated driving system installed on an
automated motor vehicle is engaged,[:
             [(1)]  the owner of, or if the vehicle is operating
under an authorization issued by the department under Section
545.456, the authorization holder for, the automated motor vehicle
shall be issued any citation for a violation of traffic or motor
vehicle laws related to the vehicle [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)  the automated driving system is considered to be
licensed to operate the vehicle].
(c) [(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 motor vehicle equipped with an
automated driving system may operate in this state.  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)  Subject to Subsection (c), an [An] automated motor
vehicle may not operate on a highway or street in this state with
the automated driving system engaged unless the vehicle is:
             (1)  capable of operating in compliance with applicable
traffic and motor vehicle laws of this state, subject to this
subchapter;
             (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;
             (3)  equipped with an automated driving system in
compliance with applicable federal law, including [and] federal
motor vehicle safety standards;
             (4)  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;
(5)  registered and titled in accordance with the laws
of this state; and
(6) [(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 or federal
law, as applicable to the type and use of the vehicle.
(c)  In addition to satisfying the requirements of
Subsection (b), a person may not operate an automated motor vehicle
to transport property or passengers in furtherance of a commercial
enterprise on a highway or street in this state without a human
driver 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.
(d)  A person commits an offense if the person operates an
automated motor vehicle in violation of Subsection (c). 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.
(e)  For purposes of Subsection (d), each day the person
operates an automated motor vehicle in violation of Subsection (c)
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 to transport property or
passengers in furtherance of a commercial enterprise 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 vehicle is:
(A)  capable of operating in compliance with
applicable traffic and motor vehicle laws of this state, subject to
this subchapter;
(B)  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)  equipped with an automated driving system in
compliance with applicable federal law, including 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)  registered and titled in accordance with the
laws of this state; and
(F)  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 or federal
law, as applicable to the type and use of the vehicle; and
(3)  a certification acknowledging that the Department
of Public Safety has been provided the plan required by Section
545.455(c)(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
material 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) upon
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 VEHICLE
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 operating under an
authorization issued by the department under Section 545.456 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)  For purposes of Subsection (a), the operation of an
automated motor vehicle endangers the public when the operation has
resulted in or is likely to result in serious bodily injury as
defined by Section 1.07, Penal Code.
(c)  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 (d)(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.
(d)  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.
(e)  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.
(f)  A certification provided under Subsection (d) 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.
(g)  If the authorization holder fails to comply with
Subsection (d), the department shall:
(1)  issue a decision, as specified in the notice of
intent, that:
(A)  suspends, revokes, or cancels the
authorization issued under this subchapter for the vehicle; or
(B)  imposes restrictions on the operation of the
vehicle; and
(2)  notify the authorization holder of the decision
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
April 22, 2025

TO:
Honorable Robert Nichols, Chair, Senate Committee on Transportation
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
SB2807 by Hagenbuch (Relating to the considerations when determining whether an operator of a motor vehicle is an employee of a motor carrier or an independent contractor.), As Introduced

No significant fiscal implication to the State is anticipated.

It is assumed that any costs associated with the bill could be absorbed using existing resources.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.


Source Agencies:
405 Department of Public Safety
LBB Staff:
JMc, AAL, CSh, KVEL

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Quick Reference

Frequently Asked Questions

Common questions about SB2807

Q

What does Texas SB2807 do?

SB2807 establishes a mandatory licensing and regulatory regime for commercial automated motor vehicles (AVs), introducing criminal penalties for operation without TxDMV authorization. Simultaneously, it provides immediate statutory protection for all motor carriers, allowing companies to mandate safety technology in independent contractor agreements without risking worker misclassification. Implementation Timeline Effective Date: September 1, 2025.

Q

Who authored SB2807?

SB2807 was authored by Texas Senator Brent Hagenbuch during the Regular Session.

Q

When was SB2807 signed into law?

SB2807 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce SB2807?

SB2807 is enforced by Texas Department of Motor Vehicles (TxDMV), Department of Public Safety (DPS) and Texas Department of Licensing and Regulation (TDLR).

Q

How urgent is compliance with SB2807?

The compliance urgency for SB2807 is rated as "critical". Businesses and organizations should review the requirements and timeline to ensure timely compliance.

Q

What is the cost impact of SB2807?

The cost impact of SB2807 is estimated as "medium". This may vary based on industry and implementation requirements.

Q

What topics does SB2807 address?

SB2807 addresses topics including safety, vehicles & traffic, vehicles & traffic--general, crimes and crimes--miscellaneous.

Legislative data provided by LegiScanLast updated: November 25, 2025

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