Pub. 16 2017-2018 Issue 2

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 3 , 2 0 1 7 10 new jersey auto retailer T he automobile has been in existence for more than 100 years. The franchise dealer community has faithfully served consumers for nearly as long, even as a complex collection of legislative, legal and regulatory requirements has piled up around us and governs much of our day-to-day business. Now, dealers are faced with unintended consequences as legislators try to figure out how to regulate cutting edge autonomous vehicle technology. How do you regulate something that is still a work-in-progress? Right now, the federal government reg- ulates the design and manufacturing of vehicles and individual states regulate the sale, distribution, licensing, repair and op- eration of the vehicles within their borders. What happens when the unique design of an autonomous vehicle ( federal domain ) is directly linked to how the vehicle is oper- ated ( State domain )? Federal oversight has lagged far behind the development of autonomous vehicle tech- nology. In fact, the National Highway Traffic Safety Administration ( NHTSA ) just released its guidelines for self-driv- ing cars in the Fall of 2016. Filling the vacuum left by federal inaction, several states, including Arizona, California, Michigan, Nevada, and others began writing their own rules and each takes a different approach to ensuring public safety. Now Congress wants to replace that patchwork of rules and regulations with one national guideline. It’s this intertwined regulatory backdrop that complicates efforts to legislate auton- omous vehicles. If done incorrectly, legisla- tion could have unintended consequences that extend far beyond its stated scope. Just look at what nearly happened when the Safely Ensuring Lives Future Deployment and Research In Vehicle Evolution Act ( SELF DRIVE Act ) was first debated. In early July, the Digital Commerce and Consumer Protection Subcommit tee approved an overly broad proposal that would have preempted a variety of state franchise and licensing laws related to driver education and training, safety and emissions inspections, traffic rules, and how motor vehicles are sold, serviced, registered, insured, and adver tised. Thankfully, the House Energy and Com- merce Committee clarified Congress’ intent NOT to jeopardize state motor vehicle franchise and licensing laws when it passed the SELF DRIVE Act on July 27, 2017. The bill is now awaiting consideration by the full House. The original language of the bill failed to recognize the distinct roles that each level of government has in the regulation Autonomous Vehicles Create A Federal-State Legislative Conundrum