Michigan Becomes First State To Regulate Self-Driving Cars

Michigan Governor Rick Snyder signed a series of bills related to self-driving cars into law on Friday, making the state most-associated with the American auto industry the first to regulate autonomous vehicles.

Snyder actually signed four separate bills on Friday, each of which has an effect on the testing, development, and safety of driverless cars. The new laws amended the Michigan Motor Vehicle requirements and adjusted a preexisting law that effectively barred automated driving throughout the state.

One of the bills, SB 996, allows for the deployment of on-demand networks of self-driving cars, so long as they are operated by motor vehicle manufacturers. In other words, companies like Apple (NASDAQ:AAPL) Alphabet (NASDAQ:GOOGL) , and Uber won’t be able to send out driverless vehicles right now, but Michigan’s own Ford (NYSE:F) and General Motors (NYSE:GM) could (Also read: Forget Lawsuits, Uber Drivers' Days Are Numbered).

A spokesperson for the Michigan Department of Transportation would later clarify to Recode that the new law only allows carmakers to deploy on-demand networks, but tech companies like those mentioned could eventually be considered vehicle manufacturers if they meet certain requirements.

Nevertheless, companies like Google and Apple have made their concerns that the deck is stacked in favor of traditional carmakers quite clear. In fact, John Krafcik, the head of Google’s driverless car segment, penned a letter to the Michigan legislature earlier this year.

“While the current bill coming out of the Senate may be suitable for traditional motor vehicle manufacturers, we are concerned that ambiguities [in definitions] could be read to exclude other innovative AV (autonomous vehicle) technology companies such as Google from operating in the state,” he wrote.

Apple has also pointed out that traditional carmakers are allowed to test their autonomous vehicles on public roads without special permissions, whereas technology companies have to seek regulatory approval first.

The tides are clearly shifting in favor of driverless cars, but it’s obvious that the old-school automakers are not ready to give up their market share to the Googles and Apples of the world. In a state like Michigan, where Ford and GM presumably still hold significant lobbying power, it’s no surprise that self-driving car regulations would favor these companies.

Nevertheless, Michigan’s new laws are a step in the right direction. States are incredibly important to anything transportation-related, and hopefully Michigan’s action will get other states—and the federal government—motivated to pass their own laws soon.

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