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HB 5329

AN ACT RELATING TO TAXATION -- CIGARETTE AND OTHER TOBACCO PRODUCTS TAX

2025 Regular Session Introduced by Jackie Baginski and 5 co-sponsors

Michigan bans public entities from buying drones whose software is from sanctioned or restricted foreign firms; starts one year after enactment, only if HB 5330 passes.

02/25/2025 Committee recommended measure be held for further study
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Bill Summary · HB 5329

Summary — HB 5329 (House Introduced Bill)

Title: State management: funds; use of state funds for purchase of certain drones; prohibit. (Tie bar with HB 5330)

Introduced: March 14, 2025 (Rep. Josh Schriver)
Status: Read and referred to committee; electronically reproduced 12/02/2025. Companion Senate bills: SB 1655, SB 35.

Purpose / Intent

HB 5329 would restrict Michigan public entities from using public funds to purchase or acquire drones whose software was made, manufactured, or developed (in whole or in part) by entities identified on certain U.S. federal restricted/sanctioned lists. The goal is to align state drone procurement with existing federal restrictions intended to address national security risks associated with foreign-linked unmanned aircraft systems (UAS) software.

Key provisions

  • Amends the Management and Budget Act (1984 PA 431) by adding section 261g (MCL citation added by the bill).
  • Prohibits a public entity, beginning one year after the effective date of the amendatory act that adds this section, from contracting to purchase/acquire a drone that includes software made, manufactured, or developed in whole or part by entities listed on any of the following:
    • The list published under section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act for FY2021 (Public Law 116-283).
    • The Chinese Military-Industrial Complex Sanction List published under 31 CFR part 586.
    • 15 CFR part 744, Supplement No. 4 (Commerce Department’s Entity List supplement).
  • Provides that, except as noted, a public entity is subject to the same restrictions and prohibitions that apply to the federal government for purchase/acquisition of drones.
  • Exemption: the section does not apply to a public entity that is acting in compliance with section 16 of the Unmanned Aircraft Systems Act (2016 PA 436, MCL 259.316).
  • Defines “public entity” by reference to section 1 of 1968 PA 317 (MCL 15.321).
  • Conditional enactment: the amendatory act would not take effect unless HB 5330 of the 103rd Legislature is enacted.

Who is affected

  • Primary: Michigan public entities (as statutorily defined) — e.g., state agencies, local governments, and other public bodies when using public funds for drone procurement.
  • Secondary: drone vendors, manufacturers, and software developers that supply UAS to Michigan public entities; contractors will face certification/verification/eligibility requirements tied to the listed federal restrictions.

Practical impact and implementation notes

  • Effective timing: restrictions begin one year after the amendatory act’s effective date, but only if companion HB 5330 is enacted.
  • Implementation will likely require procurement offices to vet software origins, confirm vendor compliance with federal entity/sanctions lists, and potentially disqualify certain foreign-linked suppliers.
  • Could limit available suppliers and require alternative sourcing or additional compliance/bid documentation for drone purchases.

Procedural / Legislative status

  • Introduced March 14, 2025; read and referred to the House Transportation (or Transportation and Infrastructure) committee. Electronically reproduced 12/02/2025. The bill is tied to HB 5330 for its effective operation.

Compiled from official sources — confirm details with the bill’s official record.

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