HOUSE BILL NO. 5332

A bill to amend 2016 PA 436, entitled

"Unmanned aircraft systems act,"

(MCL 259.301 to 259.331) by adding section 6.

the people of the state of michigan enact:

Sec. 6. (1) The department shall, on appropriation, establish and maintain a registry of unmanned aircraft that are operated by public entities in this state. The department shall post a publicly accessible version of the registry containing the information described in subsection (2)(a) and (d) on the department's website.

(2) A public entity shall, for each unmanned aircraft the public entity intends to operate, submit to the department on a form provided by the department all of the following information for inclusion in the registry:

(a) The name of the public entity.

(b) The name and contact information of each operator of the unmanned aircraft.

(c) Sufficient information to identify the unmanned aircraft, including, but not limited to, the Federal Aviation Administration-required remote ID for the unmanned aircraft.

(d) A statement describing the intended use of the unmanned aircraft by the public entity.

(3) The department shall, on or before February 1 of each year, prepare and submit to the legislature a report outlining the activities of public entities with respect to the operation of unmanned aircraft in this state.

(4) Subject to subsection (5), the department shall adopt regulations to establish both of the following:

(a) A list of countries, businesses, and entities from which, except as otherwise provided in this section, a public entity shall not purchase or acquire an unmanned aircraft or other equipment or service relating to the operation of an unmanned aircraft.

(b) A list of unmanned aircraft and other related equipment or services that a public entity shall not operate, purchase, or acquire.

(5) The department shall create and update the lists established pursuant to subsection (4) to include, without alteration by the department, all of the following:

(a) A country, business, or entity identified on any of the following lists:

(i) The list published by the Secretary of Defense of the United States Department of Defense pursuant to section 1260H of the William M. (Mac) Thornberry national defense authorization act for fiscal year 2021, Public Law 116-283, including any amendments or subsequent federal law establishing such a list.

(ii) The United Sates Department of Treasury's Chinese Military-Industrial Complex Sanction List published under 31 CFR part 586.

(iii) The United States Department of Commerce Bureau of Industry and Security's Entity List published as 15 CFR part 744, supplement 4.

(b) Any unmanned aircraft or other equipment or service relating to the operation of an unmanned aircraft sold, manufactured, or distributed by an entity identified on any of the lists described in subdivision (a).

(c) Any hardware, software, vendor, or service prohibited from being used by a public entity in this state by any other state statute or rule.

(6) A public entity may purchase or acquire an unmanned aircraft or other equipment or service relating to the operation of an unmanned aircraft from a business or entity that is identified on the lists established under subsection (4) if all of the following apply:

(a) Any photograph, image, recording, or other information collected from the purchase, acquisition, or operation of the unmanned aircraft or other equipment or service relating to the operation of the unmanned aircraft is stored and maintained exclusively within the United States and is not accessible to any third party.

(b) Before the purchase or acquisition of the unmanned aircraft or other equipment or service relating to the operation of the unmanned aircraft, the public entity has determined that the policies of the business or entity comply with subdivision (a).

(c) The purchase or acquisition complies with all requirements of federal law, including, but not limited to, any restrictions on the use of federal funds.

(7) This section does not apply to a small unmanned aircraft system procured, purchased, operated, or deployed in compliance with section 16.

(8) As used in this section:

(a) "Public entity" means that term as defined in section 1 of 1968 PA 317, MCL 15.321.

(b) "Third party" includes, but is not limited to, a person that is domiciled in a foreign country or has its principal place of business in, or is organized under the laws of, a foreign country. Third party does not include a governmental entity of the United States.

Enacting section 1. This amendatory act does not take effect unless House Bill No. 5330 (request no. H03696'25) of the 103rd Legislature is enacted into law.