GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 2 HOUSE BILL 707 Committee Substitute Favorable 4/15/25 Short Title: Drones/Certain Vendor Purchases Prohibited. (Public) Sponsors: Referred to: April 3, 2025 *H707 -v-2* A BILL TO BE ENTITLED 1 AN ACT PROVIDING THA T THE STATE AND POLITICAL SUBDIVISIONS OF THE 2 STATE SHALL NOT PURCHASE ANY UNMANNED AI RCRAFT MANUFACTURED 3 OR ASSEMBLED BY CERT AIN FOREIGN VENDORS. 4 The General Assembly of North Carolina enacts: 5 SECTION 1. Article 3 of Chapter 143 of the General Statutes is amended by adding 6 a new section to read: 7 "§ 143-59.5. Purchase of unmanned aircraft from covered foreign entities. 8 (a) Neither the State nor any political subdivision of the State shall purchase or otherwise 9 acquire any unmanned aircraft manufactured or assembled by a covered foreign entity. No State 10 funds may be used in connection with the purchase or acquisition of any unmanned aircraft 11 manufactured or assembled by a covered foreign entity, including any State funds provided 12 through a contract, grant, or cooperative agreement. 13 (b) For purposes of this section, the following definitions shall apply: 14 (1) Covered foreign entity. – An individual, foreign government, or party that 15 meets one or more of the following criteria: 16 a. Is on the United States Consolidated Screening List or Entity List. 17 b. Is domiciled in the People's Republic of China or the Russian 18 Federation. 19 c. Is under the influence or control of the government of the People's 20 Republic of China or the Russian Federation. 21 d. Is a subsidiary or affiliate of an individual, government, or party of the 22 People's Republic of China or the Russian Federation. 23 (2) Unmanned aircraft. – Defined in G.S. 15A-300.1. 24 (c) A contract entered into in violation of this section is void." 25 SECTION 2. This act becomes effective July 1, 2027, and applies to unmanned 26 aircraft purchased or acquired on or after that date. 27