(a) For the purposes of this section:

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(1) “Fully autonomous vehicle” means a motor vehicle that is equipped with an automated driving system, designed to function without an operator and classified as level four or level five by SAE J3016;

(2) “Automated driving system” means the hardware and software that are collectively capable of performing the entire dynamic driving task on a sustained basis, regardless of whether the automated driving system is limited to a specific operational design domain;

(3) “Dynamic driving task” means the real-time operational and tactical functions required to operate a motor vehicle on highways, excluding the strategic functions such as trip scheduling and selection of destinations and waypoints;

(4) “Operational design domain” means a description of the operating domains in which an automated driving system is designed to function, including, but not limited to, geographic, roadway, environmental and speed limitations;

(5) “SAE J3016” means the “Taxonomy and Definitions for Terms Related to Driving Automation Systems for On-Road Motor Vehicles” published by SAE International in September 2016;

(6) “Operator” means the person who causes the automated driving system to engage while physically inside the fully autonomous vehicle;

(7) “Autonomous vehicle tester” means an autonomous vehicle manufacturer, institution of higher education, fleet service provider or automotive equipment or technology provider;

(8) “Fleet service provider” means a person or entity that owns or leases a fully autonomous vehicle and operates such fully autonomous vehicle for commercial or public use;

(9) “Autonomous vehicle manufacturer” means: (A) A person or entity that builds or sells fully autonomous vehicles; (B) a person or entity that installs automated driving systems in motor vehicles that are not originally built as fully autonomous vehicles; or (C) a person or entity that develops automated driving systems in fully autonomous vehicles or motor vehicles that are not originally built as fully autonomous vehicles;

(10) “Secretary” means the Secretary of the Office of Policy and Management; and

(11) “Highway”, “limited access highway” and “operator’s license” have the same meanings as defined in section 14-1.

(b) The Office of Policy and Management, in consultation with the Departments of Motor Vehicles, Transportation and Emergency Services and Public Protection, shall establish a pilot program for not more than four municipalities to allow autonomous vehicle testers to test fully autonomous vehicles on the highways of such municipalities. Municipalities shall apply to the Secretary of the Office of Policy Management in the manner and form directed by the secretary for inclusion in the pilot program. The secretary shall select at least one municipality with a population of at least one hundred twenty thousand, but not more than one hundred twenty-four thousand, and one municipality with a population of at least one hundred thousand, as enumerated in the 2010 federal decennial census.

(c) The chief elected official or chief executive officer of a municipality selected by the secretary shall select and enter into a written agreement with an autonomous vehicle tester or autonomous vehicle testers to test fully autonomous vehicles on the highways of the municipality. Such agreement shall, at a minimum: (1) Specify the locations and routes where such fully autonomous vehicles may operate; (2) prohibit the operation of such fully autonomous vehicles outside such locations and routes except in the case of an emergency; (3) identify each fully autonomous vehicle to be tested by vehicle identification number, make, year and model; and (4) specify the hours of operation of such fully autonomous vehicles.

(d) An autonomous vehicle tester shall not test a fully autonomous vehicle in a municipality unless:

(1) The operator is: (A) Physically inside the fully autonomous vehicle; (B) monitoring the operation of such fully autonomous vehicle; (C) capable of taking immediate manual control of such fully autonomous vehicle; (D) an employee, independent contractor or other person designated and trained by the autonomous vehicle tester concerning the capabilities and limitations of such fully autonomous vehicle; and (E) a holder of an operator’s license;

(2) The autonomous vehicle tester: (A) Registers each fully autonomous vehicle to be tested with the Commissioner of Motor Vehicles pursuant to section 14-12; and (B) submits to the commissioner, in a manner and form directed by the commissioner, proof of liability insurance, self-insurance or a surety bond of at least five million dollars for damages by reason of bodily injury, death or property damage caused by a fully autonomous vehicle; and

(3) The operator and autonomous vehicle tester: (A) Comply with any provision of the general statutes or any ordinance of a municipality concerning the operation of motor vehicles; (B) comply with standards established by the National Highway Traffic Safety Administration regarding fully autonomous vehicles; and (C) satisfy any other requirement as determined by the secretary, in consultation with the Commissioners of Motor Vehicles, Transportation and Emergency Services and Public Protection, as necessary to ensure the safe operation of such fully autonomous vehicle.

(e) No autonomous vehicle tester shall test a fully autonomous vehicle on any limited access highway.

(f) The secretary may immediately prohibit an operator or autonomous vehicle tester from testing a fully autonomous vehicle if the secretary, in consultation with the Commissioners of Motor Vehicles, Transportation and Emergency Services and Public Protection, determines that such testing poses a risk to public safety or that such operator or autonomous vehicle tester fails to comply with the provisions of this section or with the requirements of the pilot program.

(g) An autonomous vehicle tester that participates in the pilot program shall provide information to the secretary and the task force established pursuant to section 2 of public act 17-69* that the secretary and task force deem to be appropriate for measuring the performance of the pilot program. The autonomous vehicle tester may withhold any commercially valuable, confidential or proprietary information.

(h) Not later than July 1, 2020, and annually thereafter, the secretary shall submit a report to the joint standing committee of the General Assembly having cognizance of matters relating to transportation, in accordance with section 11-4a, concerning the implementation and progress of the pilot program.