[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3862 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 3862

   To amend title 18, United States Code, to prevent certain frauds 
   involving aircraft or space vehicle parts, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 8, 2000

 Mr. McCollum introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
   To amend title 18, United States Code, to prevent certain frauds 
   involving aircraft or space vehicle parts, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Aircraft Safety Act of 2000''.

SEC. 2. PREVENTION OF FRAUDS INVOLVING AIRCRAFT OR SPACE VEHICLE PARTS 
              IN INTERSTATE OR FOREIGN COMMERCE.

    (a) Definitions.--Section 31 of title 18, United States Code, is 
amended by striking all after the section heading and inserting the 
following:
    ``(a) As used in this chapter--
            ``(1) the term `aircraft' means a civil, military, or 
        public contrivance invented, used, or designed to navigate, 
        fly, or travel in the air;
            ``(2) the term `aviation quality', with respect to a part 
        of an aircraft or space vehicle, means the quality of having 
        been manufactured, constructed, produced, maintained, repaired, 
        overhauled, rebuilt, reconditioned, or restored in conformity 
        with applicable standards specified by law (including 
        applicable regulations);
            ``(3) the term `destructive substance' means an explosive 
        substance, flammable material, infernal machine, or other 
        chemical, mechanical, or radioactive device or matter of a 
        combustible, contaminative, corrosive, or explosive nature;
            ``(4) the term `in flight' means--
                    ``(A) any time from the moment at which all the 
                external doors of an aircraft are closed following 
                embarkation until the moment when any such door is 
                opened for disembarkation; and
                    ``(B) in the case of a forced landing, until 
                competent authorities take over the responsibility for 
                the aircraft and the persons and property on board;
            ``(5) the term `in service' means--
                    ``(A) any time from the beginning of preflight 
                preparation of an aircraft by ground personnel or by 
                the crew for a specific flight until 24 hours after any 
                landing; and
                    ``(B) in any event includes the entire period 
                during which the aircraft is in flight;
            ``(6) the term `motor vehicle' means every description of 
        carriage or other contrivance propelled or drawn by mechanical 
        power and used for commercial purposes on the highways in the 
        transportation of passengers, passengers and property, or 
        property or cargo;
            ``(7) the term `part' means a frame, assembly, component, 
        appliance, engine, propeller, material, part, spare part, 
        piece, section, or related integral or auxiliary equipment;
            ``(8) the term `space vehicle' means a man-made device, 
        either manned or unmanned, designed for operation beyond the 
        Earth's atmosphere;
            ``(9) the term `State' means a State of the United States, 
        the District of Columbia, and any commonwealth, territory, or 
        possession of the United States; and
            ``(10) the term `used for commercial purposes' means the 
        carriage of persons or property for any fare, fee, rate, charge 
        or other consideration, or directly or indirectly in connection 
        with any business, or other undertaking intended for profit.
    ``(b) In this chapter, the terms `aircraft engine', `air navigation 
facility', `appliance', `civil aircraft', `foreign air commerce', 
`interstate air commerce', `landing area', `overseas air commerce', 
`propeller', `spare part', and `special aircraft jurisdiction of the 
United States' have the meanings given those terms in sections 40102(a) 
and 46501 of title 49.''.
    (b) Aircraft or Space Vehicle Parts Fraud.--
            (1) In general.--Chapter 2 of title 18, United States Code, 
        is amended by adding at the end the following:
``Sec. 38. Fraud involving aircraft or space vehicle parts in 
              interstate or foreign commerce
    ``(a) Whoever, in or affecting interstate or foreign commerce, 
knowingly and with the intent to defraud--
            ``(1)(A) falsifies or conceals a material fact;
            ``(B) makes any materially fraudulent representation; or
            ``(C) makes or uses any materially false writing, entry, 
        certification, document, record, data plate, label, or 
        electronic communication;
        concerning any aircraft or space vehicle part;
            ``(2) exports from or imports or introduces into the United 
        States, sells, trades, installs on or in any aircraft or space 
        vehicle any aircraft or space vehicle part using or by means of 
        a fraudulent representation, document, record, certification, 
        depiction, data plate, label, or electronic communication; or
            ``(3) attempts or conspires to commit an offense described 
        in paragraph (1) or (2);
shall be punished as provided in subsection (b).
    ``(b) The punishment for an offense under subsection (a) is as 
follows:
            ``(1) If the offense relates to the aviation quality of a 
        part and the part is installed in an aircraft or space vehicle, 
        a fine of not more than $500,000, imprisonment for not more 
        than 10 years, or both.
            ``(2) If, by reason of the failure of the part to operate 
        as represented, the part to which the offense is related is the 
        proximate cause of a malfunction or failure that results in 
        serious bodily injury (as defined in section 1365), a fine of 
        not more than $1,000,000, imprisonment for not more than 20 
        years, or both.
            ``(3) If, by reason of the failure of the part to operate 
        as represented, the part to which the offense is related is the 
        proximate cause of a malfunction or failure that results in the 
        death of any person, a fine of not more than $1,000,000, 
        imprisonment for any term of years or life, or both.
            ``(4) In the case of an offense under subsection (a) not 
        described in paragraph (1), (2), or (3), a fine under this 
        title, imprisonment for not more than 5 years, or both.
            ``(5) If the offense is committed by an organization, a 
        fine of not more than--
                    ``(A) $10,000,000 in the case of an offense 
                described in paragraph (1) or (4); and
                    ``(B) $20,000,000 in the case of an offense 
                described under paragraph (2) or (3).
    ``(c)(1) The district courts of the United States shall have 
jurisdiction to prevent and restrain violations of this section by 
issuing appropriate orders, including--
            ``(A) ordering a person (convicted of an offense under this 
        section) to divest any interest, direct or indirect, in any 
        enterprise used to commit or facilitate the commission of the 
        offense, or to destroy, or to mutilate and sell as scrap, 
        aircraft material or part inventories or stocks;
            ``(B) imposing reasonable restrictions on the future 
        activities or investments of any such person, including 
        prohibiting engagement in the same type of endeavor as used to 
        commit the offense; and
            ``(C) ordering the dissolution or reorganization of any 
        enterprise knowingly used to commit or facilitate the 
        commission of an offense under this section making due 
        provisions for the rights and interests of innocent persons.
    ``(2) Pending final determination of a proceeding brought under 
this section, the court may enter such restraining orders or 
prohibitions, or take such other actions (including the acceptance of 
satisfactory performance bonds) as the court deems proper.
    ``(3) A final judgment rendered in favor of the United States in 
any criminal proceeding brought under this section shall stop the 
defendant from denying the essential allegations of the criminal 
offense in any subsequent civil proceeding brought by the United 
States.
    ``(d)(1) The court, in imposing sentence on any person convicted of 
an offense under this section, shall order, in addition to any other 
sentence and irrespective of any provision of State law, that the 
person forfeit to the United States--
            ``(A) any property constituting, or derived from, any 
        proceeds that the person obtained, directly or indirectly, as a 
        result of the offense; and
            ``(B) any of the person's property used, or intended to be 
        used in any manner, to commit or facilitate the commission of 
        the offense, if the court in its discretion so determines, 
        taking into consideration the nature, scope, and 
        proportionality of the use of the property in the offense.
    ``(2) The forfeiture of property under this section, including any 
seizure and disposition of the property, and any proceedings relating 
to the property, shall be governed by section 413 of the Comprehensive 
Drug Abuse and Prevention Act of 1970 (21 U.S.C. 853) except subsection 
(d) of that section.
    ``(e) This section does not preempt or displace any other remedy, 
civil or criminal, provided by Federal or State law for the fraudulent 
importation, sale, trade, installation, or introduction into commerce 
of an aircraft or space vehicle part.
    ``(f) This section also applies to conduct occurring outside the 
United States if--
            ``(1) the offender is a natural person who is a citizen or 
        permanent resident alien of the United States, or an 
        organization organized under the laws of the United States or 
        political subdivision thereof;
            ``(2) the aircraft or spacecraft part as to which the 
        violation relates was installed in an aircraft or space vehicle 
        owned or operated at the time of the offense by a citizen or 
        permanent resident alien of the United States, or by an 
        organization organized under the laws of the United States or a 
        State political subdivision thereof; or
            ``(3) an act in furtherance of the offense was committed in 
        the United States.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 2 of title 18, United States Code, is 
        amended by adding at the end the following new item:

``38. Fraud involving aircraft or space vehicle parts in interstate or 
                            foreign commerce.''.
            (3) Wiretapping predicate.--Section 2516(1)(c) of title 18, 
        United States Code, is amended by inserting ``section 38 
        (relating to aircraft parts fraud),'' after ``section 32 
        (relating to destruction of aircraft or aircraft 
        facilities),''.
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