This bill prohibits subsidiaries of foreign-owned companies from performing security screening at commercial airports and establishes additional requirements for private screening companies.

The Transportation Security Administration (TSA) must not:

• contract with private screening companies that are U.S. subsidiaries of foreign companies or have compromised covert security testing,
• permit the screening to be performed by a subcontractor, or
• provide funding to any company that provides screening services at an airport in excess of the required amount.

Private screening companies must:

• provide the right of first refusal to federal or private sector employees who are performing screening at an airport when a contract is awarded; and
• report to the TSA regarding security breaches, retention rates of employees, adverse employment actions, and customer complaints.

The TSA must use Government Accountability Office (GAO) guidance to compare the costs of overseeing private companies with using federal employees for screening, enhance monitoring of the performance of private screening companies, and require companies to train employees on handling sensitive information.

Each airport must notify passengers if screening is conducted by a contractor and provide contact information for reporting complaints.

The GAO must conduct annual covert testing of airports that use private screening companies.

The TSA must establish a process for confidentially reporting deficiencies, waste, or vulnerabilities with respect to private screening services. The companies must not retaliate against individuals who report this information, refuse to engage in illegal activities, or testify during government proceedings.