Newsom Vetoes Bill to Require Drivers in Autonomous Trucks

Sept. 23, 2023, 3:46 AM UTC

California Gov. Gavin Newsom (D) vetoed legislation on Friday to require drivers in autonomous trucks, a major priority for the labor movement that views emerging driverless technologies as an existential threat to the jobs of union members.

Driverless trucks are not yet operating on state roads and it is not clear when the state might permit the testing of such vehicles. But autonomous vehicle manufacturers argued the bill (A.B. 316) would stifle the industry in California and send it elsewhere.

The debate placed Newsom in an awkward political position. The governor has long been an ally of the state’s tech industry and is eager to maintain California’s supremacy in the sector as the home of Silicon Valley.

But Newsom is also seeking to build his own national profile, emerging as a prominent defender of President Joe Biden and a possible future candidate for the presidency. Vetoing the bill, backed by the International Brotherhood of Teamsters, makes enemies within an influential constituency of the Democratic Party.

In a veto message to lawmakers, tucked into the bottom of a Friday night press release, Newsom said the bill is not needed and suggested that concerns about jobs as well as safety are best addressed by regulators, not legislation.

“Considering the longstanding commitment of my administration to addressing the present and future challenges for work and workers in California, and the existing regulatory framework that presently and sufficiently governs this particular technology, this bill is not needed at this time,” he wrote.

Advisers Opposed

The measure won bipartisan support among legislators, passing the state Assembly by a vote of 69-4 and the Senate by a vote of 36-2.

Backers picked up momentum over the summer from mounting criticism of the state’s oversight of autonomous taxi service in San Francisco, where city officials have raised concerns about driverless cars obstructing emergency vehicles and public transit.

Still, the state has been regulating autonomous passenger vehicles and light-duty vehicles for a decade and a top economic adviser to the governor had warned the measure would forfeit California’s potential role in the future of heavy-duty autonomous vehicles.

“A.B. 316 addresses autonomous trucking in a vacuum,” wrote Dee Dee Myers, director of the Governor’s Office of Business and Economic Development, in an Aug. 15 letter to lawmakers. “The bill fails to recognize that the federal government and nearly a dozen other states are moving forward with this technology. And many of those states are actively positioning themselves to lure away California-based companies and the investments and jobs they bring.”

The director of the California Department of Motor Vehicles, a Newsom appointee and former Cisco Systems Inc. executive, also argued against the bill, contending that the issue is best left to regulators rather than the legislature.

Jeff Farrah, executive director of the Autonomous Vehicle Industry Association, welcomed the veto.

“As a result, California’s safety experts can continue to evaluate autonomous vehicle technology and consider appropriate regulatory action,” he said.

No Forgetting, Teamsters Say

The Teamsters argue there are hundreds of thousands of jobs in jeopardy in California because of the technology and that the state’s actions of autonomous trucks will influence the rest of the country.

The union had ratcheted up pressure on the governor to sign the bill and its leaders have made clear that a veto would be a betrayal they will not forgive or forget. Newsom is serving in his second term that ends in January 2027.

“If Gov. Newsom doesn’t sign the bill, then we fight him,” said Teamsters President Sean O’Brien during a visit Sept. 19 to Sacramento, where he rallied supporters of the measure. “We make sure we hold him accountable. If our members aren’t doing their jobs, what happens to them? They get terminated. If he’s not going to do his job, we’re going to make sure that we expose him for what he is, make certain that he doesn’t get another opportunity anywhere in politics to hurt working people.”

Draft Rules Pending

The bill, authored by Assembly Speaker Pro Tem Cecilia Aguiar-Curry (D), would require autonomous vehicles with a gross vehicle weight over 10,000 pounds to include a “safety operator.” The operator would be required to have all the certifications required to drive the vehicle, regardless of whether it is in automated mode.

Under the measure, if the state DMV ever approves testing of autonomous trucks, the agency would be required to report back to the legislature on vehicle performance, public safety, and effects on employment in the transportation industry.

That report would be required at least five years after the start of testing, but no sooner than 2029.

The state DMV has held meetings as recently as July to discuss rules for autonomous trucks. But it is unclear when the department might release draft rules, much less begin licensing vehicles to operate on the open road.

To contact the reporter on this story: Andrew Oxford in Sacramento at aoxford@bloombergindustry.com

To contact the editor responsible for this story: Bill Swindell at bswindell@bloombergindustry.com

Learn more about Bloomberg Law or Log In to keep reading:

See Breaking News in Context

Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.

Already a subscriber?

Log in to keep reading or access research tools and resources.