California Code of Regulations
Title 13 - Motor Vehicles
Division 1 - Department of Motor Vehicles
Chapter 1 - Department of Motor Vehicles
Article 3.7 - Testing of Autonomous Vehicles
Section 227.10 - Surety Bond

Universal Citation: 13 CA Code of Regs 227.10

Current through Register 2024 Notice Reg. No. 12, March 22, 2024

A manufacturer may satisfy the requirement of Vehicle Code section 38750(b)(3) to provide evidence of financial responsibility as a precondition of conducting testing of autonomous vehicles on public roads by giving the department an instrument evidencing the existence of a bond, as follows:

(a) The bond shall be issued by an admitted surety.

(b) The bond shall be in the penal amount of five million dollars ($5,000,000).

(c) The bond shall be conditioned that the surety shall be liable if the manufacturer, as principal, fails to pay any final judgment for damages for personal injury, death or property damage arising from an accident involving an autonomous vehicle operated by the manufacturer under Vehicle Code section 38750(b).

(d) The bond shall be subject to the Bond and Undertaking Law, Chapter 2 (commencing with Section 995.010), Title 14, Part 2, of the Code of Civil Procedure.

(e) The bond shall be considered a bond given as a condition of license or permit, shall be continuous in form, remain in full force and effect, and run concurrently with the manufacturer's authority to test vehicles on public roads under Vehicle Code section 38750 and any and all renewals or until cancellation or withdrawal of the surety from the bond.

(f) The bond shall be a bond, and not a deposit in lieu of bond.

(g) The bond shall be submitted to the department on the Autonomous Vehicle Manufacturer Surety Bond, form OL 317 (Rev. 7/2020), which is hereby incorporated by reference and has been approved by the California Attorney General under Government Code sections 11110 through 11113.

1. New section filed 5-19-2014; operative 9-16-2014 pursuant to Vehicle Code section 38750(f) (Register 2014, No. 21).
2. Editorial correction of subsection (b) (Register 2014, No. 23).
3. Change without regulatory effect amending form OL 317, Autonomous Vehicle Manufacturer Surety Bond (incorporated by reference), amending first paragraph and redesignating and amending former subsection (h) as subsection (g) filed 4-15-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 16).

Note: Authority cited: Sections 1651 and 38750, Vehicle Code. Reference: Section 995.010, Code of Civil Procedure; Sections 11110, 11111, 11112 and 11113, Government Code; and Section 38750, Vehicle Code.

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