As connected and automated transportation systems evolve, there is a growing need for federal and state authorities to revise existing laws and develop new statutes to address emerging cybersecurity and data privacy challenges. This study introduces a Retrieval-Augmented Generation (RAG) based Large Language Model (LLM) framework designed to support policymakers by extracting relevant legal content and generating accurate, inquiry-specific responses. The framework focuses on reducing hallucinations in LLMs by using a curated set of domain-specific questions to guide response generation. By incorporating retrieval mechanisms, the system enhances the factual grounding and specificity of its outputs. Our analysis shows that the proposed RAG-based LLM outperforms leading commercial LLMs across four evaluation metrics: AlignScore, ParaScore, BERTScore, and ROUGE, demonstrating its effectiveness in producing reliable and context-aware legal insights. This approach offers a scalable, AI-driven method for legislative analysis, supporting efforts to update legal frameworks in line with advancements in transportation technologies.