Advanced driver assistance systems.

Removed the core insurance consumer protections: prohibition on insurers increasing premiums based on non-use of autonomous driving systems, prohibition on requiring use as a condition of coverage, prohibition on surcharges for non-users, private right of action for policyholders, $10,000 administrative penalties, and prior approval requirement for rate filings.

Added comprehensive Vehicle Code provisions (Section 38750) establishing a DMV application and approval process for operating autonomous vehicles on public roads, including safety requirements such as engage/disengage mechanisms, visual indicators, alert systems, 30-second pre-collision data recording retained for three years, and $5 million insurance or surety bond requirements.

Changed the voting requirement from a two-thirds majority (as a Proposition 103 amendment) to a simple majority vote, reflecting that the bill no longer amends insurance rate-setting provisions protected by Prop 103.

Added new Chapter 2 (Sections 38756-38759) prohibiting manufacturers from using software updates to remove, disable, or materially restrict a driver's ability to manually engage or disengage an advanced autonomous driving system that was available at original retail sale, or to require engagement as a condition of operation.

Added enforcement mechanism allowing the Attorney General, district attorney, or city attorney to bring civil actions with penalties up to $25,000 per violation. Each material software update deployed in violation constitutes a separate violation. Explicitly excluded from being an unlawful business practice under Section 17200 of the Business and Professions Code.

Added that starting January 1, 2030, driverless autonomous vehicles (model year 2031 or later, under 8,501 pounds) may only operate if they are zero-emission vehicles, to the extent authorized by federal law. DMV rulemaking for this provision cannot begin before January 1, 2027.

Added Section 12803.1 requiring the DMV to consider adding driver's license exam questions about the distinction between SAE Level 2 and higher levels of automation, legal liability when systems are engaged, and system limitations.

Defined 'advanced autonomous driving system' in the Vehicle Code as SAE Level 2 or Level 3 (narrower than the insurance code definition which covered Levels 2-5). Separately defined 'autonomous vehicle' in Section 38750 as meeting SAE Level 3, 4, or 5.

The entire Chapter 8.5 (Sections 1849.1-1849.3) added to the Insurance Code is deleted. This removed the 'Drive My Car Act' naming, its legislative findings, SAE level definitions, and the requirement that automobile manufacturers notify the Department of Insurance and automobile insurers of any software updates to vehicle models equipped with an advanced autonomous driving system.

The scope of definitions in Section 38750(a) is narrowed from applying to 'this division, chapter' to only 'this chapter.' Similarly, the severability clause (Section 38753) and federal preemption clause (Section 38750(g)) are changed from referencing 'division' to 'chapter,' limiting their reach.

The legislative findings in Section 38756(a) narrow the referenced SAE levels from 'Levels 2 to 5, inclusive' to just 'Level 2,' aligning the findings with the redefined scope of driver assistance systems rather than full autonomous vehicles.

Section 38757 is restructured to create two separate definitions: 'advanced driver assistance system' (Level 2 or Level 3) and 'autonomous technology' (Level 3, Level 4, or Level 5), replacing the single prior definition of 'advanced autonomous driving system' that covered Level 2 or Level 3.

Section 38758(a) adds new language requiring that a manufacturer of an advanced driver assistance system, or an automobile equipped with one, ensure a driver is able to disable or disengage either an advanced driver assistance system or autonomous technology as a condition of operating the vehicle under a condition in which manual operation was previously available.

New Section 1849.3 requires automobile manufacturers to notify the Department of Insurance and automobile insurers of any software updates to vehicle models equipped with an advanced autonomous driving system.

The definition of 'advanced autonomous driving system' was expanded to include SAE Level 2 (which performs steering and acceleration/deceleration but requires the human driver to monitor and remain responsible). A new standalone definition for SAE Level 2 was added. However, the insurance premium protections in Section 1849.3(b) still apply only to SAE Levels 3 through 5.

The legislative digest was updated to describe the new manufacturer notification requirement, signaling a broader regulatory role for the Department of Insurance beyond just policing insurer pricing behavior.