Committee hears fast‑track plan to replace Chinese‑made state drones and expand VANTAS radar access; asks for detailed cost breakdown

The Appropriations Committee heard extended testimony on House Bill 1038, a two‑part proposal to replace certain state‑owned drones and to expand the VANTAS drone‑surveillance network’s access to federal radar data. Lawmakers did not vote on the bill; the committee asked the sponsor and the VANTAS partners to provide a detailed cost breakdown and to return with that material after floor session.

Representative Mike Nathie (District 30, Bismarck), sponsor of House Bill 1038, told the committee the bill responds to federal security guidance and to concerns about Chinese‑manufactured platforms. "The state owns 353 drones. Of those drones, 307 are manufactured by this Chinese manufacturer, DJI," Nathie said. He described a $15 million state‑funded replacement, training and disposal program, to be administered by the Northern Plains UAS Test Site, that would replace non‑NDAA‑compliant drones in state inventory with U.S.‑made or allied‑made platforms, fund training, catalog devices, and pay for secure disposal or resale.

The bill’s second component would provide $11 million to upgrade the VANTAS network and host a Federal Radar Data Enclave (a one‑year pathfinder), which witnesses said would allow VANTAS to expand coverage from the current roughly 3,000 square miles to tens of thousands more. Frank Mattis of Thales USA, VANTAS’ industry partner, said the $11 million is a bottoms‑up estimate to meet FAA requirements for handling controlled unclassified radar data and to bring security, personnel vetting and systems up to the FAA’s standards.

Mattis and Aaron Raessler, deputy executive director of the Northern Plains UAS Test Site, described program details and timing. Mattis said the $11 million estimate is roughly split across principal participants: Thales (about $5.5 million), the test site (about $3.5 million) and NDIT (about $3 million), with MITRE providing technical support. Raessler outlined technical and program tasks the money would cover: system design and critical design review, cybersecurity controls and documentation, FAA connectivity and validation tests, and an operational flight‑test campaign. He said the pathfinder would give access to FAA radar data that could extend VANTAS coverage to an estimated 56,000 square miles; he warned that building equivalent new infrastructure independently would cost substantially more (the witnesses estimated roughly $255 million).

Committee members pressed on several points: procurement and administration (Commerce will appropriate and the test site will administer), whether the test site needs additional staff or FTEs (the test site said it can proceed with existing staff but may request additional staff later), resale/value of replaced drones, and how the program would be sustained operationally. Representatives of Thales and the test site argued the program could produce licensing or data‑service revenue by offering VANTAS coverage to other states and commercial partners; they cited an agreement with Michigan as an example of early commercialization interest.

The committee did not act; it asked the sponsor and witnesses to provide a detailed, line‑item estimate (the committee asked specifically for the breakdown of the $11 million and the $15 million figures, and for assumptions about staffing and recurring costs). The vendors agreed to provide the information and the committee set an expedited return: the witnesses agreed to supply the requested cost details immediately after floor session, and the committee said it will reconvene the item when the information is delivered.

Ending: The committee deferred action pending the requested cost breakdown. Representative Nathie said the bill is time‑sensitive because a federal NDAA requirement takes effect in December 2025 and because federal action could trigger an earlier need; he and industry partners told the committee they want the state to be first in line for compliant equipment and VANTAS access if federal restrictions tighten.