That's a problem in general with the definitions of levels. Almost all traffic laws in the US are state laws, and drivers (the person in the driver's seat) have to follow the rules of the road, including paying attention. No car company can change that, so in most places, even if a car can do all the driving on its own, it would still be level 2 since you'd still have to pay attention. As for level 3, it's not up to a car company to say that under certain conditions, a person doesn't have to pay attention. And state laws would have to define specific circumstances under which a car could be considered level 3. As it stands now, a police officer can't tell whether my car has Autopilot or Dream Drive or FSD or anything else, much less whether it's activated. That would make it hard for a car to allow me not to pay attention in some situations since there's no way of telling that I'm allowed. I can't see the police ignoring potential violations on the grounds that it's possible that the car is level 3.