Committee hears plan to replace Chinese‑made state drones, fund FAA radar data pathfinder for VANTAS

Representative Mike Nathie introduced House Bill 1038 in the Senate Committee on Industry and Business, seeking state funds to replace Chinese‑manufactured drones in state agency fleets and to fund a one‑year FAA radar data “pathfinder” to integrate federal radar into North Dakota’s VANTAS unmanned‑aircraft infrastructure.

Why it matters: Supporters said the bill addresses a national‑security concern — that many state drones are made by a single Chinese manufacturer (DJI) and may contain components or remote links that federal agencies have flagged as risks. The second portion of the bill is time‑sensitive, supporters said, because the FAA has invited North Dakota to test a federal radar data enclave that could expand VANTAS coverage statewide and set a replicable national model for integrating drones into the National Airspace System.

Key provisions and costs Representative Nathie described two primary sections: a replacement grant and support program for state agencies to replace Chinese‑manufactured drones, and an $11,000,000 appropriation to pay for an FAA radar data pathfinder to bring federal radar data into the VANTAS system. Representative Nathie told the committee the replacement portion includes $15,000,000 for replacement, training and disposal; a reporting requirement and inventory of existing drones; and administration by the Northern Plains UAS test site, which the bill would use as a subject‑matter expert and administrator. The bill’s language also encourages agencies to consolidate drones for shared use where feasible.

Testimony and technical context Frank Mattis of Thales USA described the VANTAS program as “the first of its kind program anywhere in the world,” saying the state has used VANTAS to build infrastructure enabling beyond‑visual‑line‑of‑sight flight and operations across broad regions of North Dakota. Mattis said access to FAA radar data would expand VANTAS coverage from about 3,000 square miles today to approximately 56,000 square miles, and that the $11,000,000 pathfinder is intended to fund one year of testing and security upgrades to host national‑security radar data.

Trevor Woods, executive director of the Northern Plains UAS Test Site, and Deputy Executive Director Erin Raesler described the test site’s role as program administrator and said the test site already uses a rigorous onboarding process for aircraft that fly on the network. They told the committee the test site would vet operators and coordinate procurement, training and disposal; Raesler said the pathfinder would require federal‑level security controls and background checks for personnel who touch the radar data.

Several state and industry witnesses emphasized the inventory and timing details. Representative Nathie said the state inventory lists 353 drones, of which 307 are manufactured by DJI. Committee members asked whether software patches or other mitigations could reduce risk; witnesses said software fixes are imperfect, that components may be embedded in hardware and that replacing non‑NDAA‑compliant models is the more reliable long‑term solution.

Opposition and concerns A DJI representative appeared in opposition and argued the company’s products dominate the market because they are inexpensive and user friendly. The representative urged caution about mandating replacement without consideration of civilian uses and small users; DJI said many civilian users and institutions of higher education could be adversely affected if replacements are required broadly.

Committee discussion and timing Witnesses and the Governor’s office emphasized urgency for the pathfinder portion, saying FAA timing makes the one‑year appropriation time sensitive; supporters asked that the bill not be delayed by substantive amendments to section 1, and committee members discussed splitting the bill so the pathfinder funding could move forward without final action on the drone‑replacement details.

Outcome and next steps The committee took testimony from multiple agencies, vendors and industry stakeholders and did not record a formal committee vote on HB1038 at the hearing. Members suggested further follow‑up and staff work; supporters asked the committee to advance the pathfinder appropriation quickly to meet FAA timelines.

Ending: The hearing closed with committee members scheduling follow‑up discussions on the bill’s two sections and how to address timing and amendment concerns.