FISCAL NOTE
Date Requested: February 16, 2026
Time Requested: 04:13 PM |
| Agency: |
Homeland Security, Department of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 2140 |
Introduced |
HB5552 |
|
|---|
| CBD Subject: |
Counties; Public Safety |
|---|
|
FUND(S):
General And Special
Sources of Revenue:
Other Fund Both General and Special
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The proposed legislation strictly prohibits West Virginia public entities from
purchasing, acquiring, or operating small unmanned aircraft systems (drones under 55
pounds) manufactured or assembled by a "Covered Foreign Entity".
Covered Foreign Entities: This includes any individual, government, or party domiciled
in or controlled by the People's Republic of China or the Russian Federation.
Funding: Public entities may not use state funds (including grants or cooperative
agreements) in connection with these restricted drones.
Operational Deadline: Public entities must cease operating all non-compliant drones on
or after May 1, 2029.
Waiver Authority: The Secretary of the Department of Homeland Security may waive these
restrictions for exigent circumstances, Counter Unmanned Aircraft Systems, or criminal
investigative purposes.
Grant Replacement Program: Subject to appropriation, a drone replacement grant program
will be created within the Department of Homeland Security. Impacted agencies can trade
in non-compliant drones to receive funds to acquire compliant systems, such as those
with DIU Blue sUAS or AUVSI Green UAS certifications. Applications will be processed on
a first-come, first-served basis.
We do not know what counties, cities and municipalities have drones
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2026
Increase/Decrease
(use"-") |
2027
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The actual fiscal impact of this bill is unknown. There will be a grant portion and
then most agencies will probably need an improvement to assist them in purchasing the
replacements.
On average, a compliant Blue sUAS drone costs 3 to 10 times more than its DJI
counterpart.
I reviewed 30 drones within DHS and looking at the numbers, to replace those drones
with equivalent items that originally cost roughly $290,000 will require an estimated
$700,000+ in new procurement.
The bill establishes a drone replacement grant program to help agencies acquire
compliant systems and training. However, it explicitly states that funds shall be
provided based upon the drone's "current purchase value".Drone technology depreciates
incredibly fast. By the time agencies trade in their equipment before the May 1, 2029
deadline, the "current purchase value" of that original $290k investment will be a
fraction of what was paid.
If the grant program only pays out the depreciated value of the existing DJI drones,
state agencies will be left with an unfunded mandate of hundreds of thousands of
dollars to bridge the gap to the $701,500 needed for compliant replacements.
Memorandum
Several undefined terms in the proposed bill:
Current Purchase Value: It is unclear whether this term dictates the original purchase
price paid by the agency, the current retail price to buy the drone new today, or the
depreciated fair-market value of the used asset.
End of Life Status: To be eligible for replacement funds, a drone "must not have
reached its end of life". The bill does not define if this refers to the physical
lifespan of the unit, a state accounting schedule, or the foreign manufacturer's
official software support timeline. Older models like the Fire Marshal's 10 Mavic 2s
risk total funding ineligibility if the manufacturer marks them obsolete.
Grant Funding: Because funds are allocated on a "first-come, first-served basis,"
agencies that are slower to submit their required applications and training plans may
be legally mandated to ground their fleets by 2029 with zero financial recourse if the
appropriated funds run out.
Person submitting Fiscal Note: Bryan D Arthur
Email Address: bryan.d.arthur@wv.gov