Michigan has become the first state to pass comprehensive regulations for the testing, usage and sale of self-driving cars.

Four bills related to self-driving technology were signed by Michigan Gov. Rick Snyder at the Automotive Hall of Fame in Dearborn, placing the state in the position to become the future leader in the growth of the self-driving car industry.

Michigan's Laws For Self-Driving Cars

With the bills that Gov. Snyder has signed into law, the state now allows self-driving cars that have no steering wheels or brake pedals to be tested, even without a human in the vehicle's front seat. Michigan now also allows the usage of self-driving cars in ride-sharing services.

In addition, Michigan is now also allowing the sale of self-driving cars to the public, once the technology has been tested and certified.

Collectively, the new regulations effectively amend the Michigan Motor Vehicle requirements, along with another law that previously banned self-driving technology in the state.

The new laws also pave the way for the establishment of the Michigan Council on Future Mobility, which will function as an arm of the Michigan Department of Transportation. The council will craft recommendations for policies on self-driving car technology, and will also regulate the networks that connected vehicles operate in and the collection and sharing of traffic data, including those collected from crashes.

Among the companies that helped shape the bills that Gov. Snyder has signed into law are automobile manufacturers Ford, Toyota, Fiat Chrysler, and General Motors, alongside ride-sharing services Lyft and Uber and the perceived leader in the development of self-driving car technology, Google.

Michigan vs. Silicon Valley

The new laws look to re-establish Michigan as the state that would be the center of innovations in the automotive industry, at a time when most of the news is focused on self-driving technology being developed in Silicon Valley.

With the new regulations, Michigan propels itself in front of California, as laws there do not allow the usage of self-driving cars that do not have steering wheels and brake pedals, which include prototypes that have been created by Google.

A Wrinkle In Michigan's Self-Driving Laws

Not everything about the laws that were passed in Michigan are what self-driving technology proponents wanted though. Under the regulations, only motor vehicle manufacturers are given the permission to operate ride-sharing services using self-driving cars.

This is a problem because, as Uber and Lyft expect, people might no longer feel the need to buy cars in the future, as they will be using transportation services offered by them through self-driving cars.

For non-traditional automakers such as Uber, Lyft, and Google, to be able to test and deploy their self-driving cars, they would need to work with a traditional automobile manufacturer in creating the cars or seek approval from the NHTSA for their prototypes.