WeVote

Bill

WeVote Research Nonpartisan
Bill Summary · HB 707

HB 707 — Drones / Certain Vendor Purchases Prohibited (Summary)

Status: Committee Substitute Favorable (Reptd. Fav. Com. Substitute). Effective date in bill: applies to purchases on or after July 1, 2027.

Main purpose

Prevent the State of North Carolina and its political subdivisions from purchasing or acquiring unmanned aircraft (drones) that are manufactured or assembled by certain foreign vendors identified as potential national‑security risks.

Key provisions

  • Prohibition: Neither the State nor any political subdivision may purchase, acquire, or use State funds to procure any unmanned aircraft manufactured or assembled by a “covered foreign entity.” State funds include monies provided through contracts, grants, or cooperative agreements.
  • Void contracts: A contract entered into in violation of the prohibition is void (included in the committee substitute).
  • Definitions:
    • Covered foreign entity — an individual, foreign government, or party meeting any of these criteria:
    • Listed on the U.S. Consolidated Screening List or the U.S. Department of Commerce Entity List; or
    • Domiciled in the People’s Republic of China (PRC) or the Russian Federation; or
    • Under the influence or control of the governments of the PRC or Russian Federation; or
    • A subsidiary or affiliate of an individual, government, or party of the PRC or Russian Federation.
    • Unmanned aircraft — in the committee substitute, is defined by reference to G.S. 15A‑300.1 (i.e., statutory definition of unmanned aircraft). (An earlier draft limited coverage to “small unmanned aircraft systems” weighing under 55 pounds; the substitute broadens scope to all unmanned aircraft.)

Who is affected

  • State agencies, public universities, local governments, law enforcement, first‑responder units, and any political subdivision that buys or receives State funds for unmanned aircraft.
  • Vendors and contractors supplying unmanned aircraft to the State or local governments.
  • Procurement officers and grant administrators responsible for vendor vetting and contract compliance.

Implementation and timeline

  • Applies to purchases or acquisitions made on or after July 1, 2027.
  • Requires agencies to screen prospective drone vendors against U.S. federal lists and the statutory criteria above to ensure compliance; noncompliant procurements risk being voided.

Potential impacts and considerations

  • Procurement: agencies will need procedures to vet manufacturers/assemblers and document compliance; this may increase administrative burden.
  • Supply chain: may limit available vendors, potentially raising costs or creating delays if widely used manufacturers fall within the covered criteria.
  • Legal risk: contracts awarded in violation are void, creating contractual and operational exposure.
  • Coordination: agencies will likely rely on federal lists (Consolidated Screening List, Entity List) and legal counsel to interpret “under influence or control” and affiliate/subsidiary relationships.

Note: The bill evolved from an initial draft focused on small UAS (<55 lbs) to a committee substitute that covers all unmanned aircraft and explicitly voids violating contracts.

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

Sign in to ask a question.