Autonomous Trucks in California May Require Human On Board
Should autonomous vehicles have a human on board? It’s obviously an important question. Not only for safety but also the economics of it. There are millions of drivers that depend on the profession to earn their living. There is also the comfort factor of all of the other drivers on the roads at the same time driverless trucks may be using them.
California is bringing this issue up now with Assembly Bill 316 currently with Gov. Gavin Newsom for signature or veto that would require a human driver on board autonomous trucks for at least the next five years. It is expected that the bill will be vetoed with concern it would hurt innovation and competitiveness for the state. The bill passed the California Senate by an overwhelming majority of 36-2. If vetoed it is expected that the bill sponsor, Cecilia Anguiar-Curry (D-Winters), will move to override the veto with a two-thirds majority vote in the house and senate.
It should be no surprise that the Teamsters union is a significant proponent of the bill but this is likely something non-union drivers are watching closely as well. With the challenging freight market we have heard less about a driver shortage but it is still a large concern among trucking companies. With large numbers of baby boomers retiring every year, a challenging age requirement to drive interstate, and now a younger generation facing technology that could change the job landscape, the economic aspect may play a critical role in the governmental oversight on this issue.
Nathan is a CPA and has more than ten years of experience providing tax planning, consulting and compliance services to a number of privately held businesses and individuals in a variety of industries, with a special focus on the transportation and logistics industry. He actively communicates with clients and seeks ways to align their individual and business goals with available tax strategies to allow them to make well-informed decisions.
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