[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9707 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 9707
To protect the national security of the United States by strengthening
review of foreign adversary investments in the general aviation sector,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 15, 2026
Mr. Harrigan (for himself and Mr. Mackenzie) introduced the following
bill; which was referred to the Committee on Financial Services, and in
addition to the Committees on Foreign Affairs, Energy and Commerce,
Transportation and Infrastructure, Oversight and Government Reform, and
Small Business, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To protect the national security of the United States by strengthening
review of foreign adversary investments in the general aviation sector,
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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``General Aviation
Protection Act'' or the ``GAP Act''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Mandatory CFIUS filing for covered aviation transactions.
Sec. 3. Extended CFIUS real-estate jurisdiction for general aviation
facilities.
Sec. 4. Rebuttable presumption of prohibition for foreign adversary
acquisitions of general aviation companies.
Sec. 5. Review and classification of general aviation dual-use
technologies.
Sec. 6. Outbound investment notification for general aviation
technologies.
Sec. 7. Review of existing foreign adversary ownership of general
aviation companies.
Sec. 8. Supply chain integrity audits for foreign adversary-controlled
aviation certificate holders.
Sec. 9. Restrictions on Federal financial assistance; foreign ownership
disclosure requirement.
Sec. 10. Definitions.
Sec. 11. Severability.
Sec. 12. Effective date.
SEC. 2. MANDATORY CFIUS FILING FOR COVERED AVIATION TRANSACTIONS.
(a) Findings.--Congress finds the following:
(1) The general aviation sector of the United States
represents a critical component of the national aerospace and
defense industrial base. General aviation aircraft, engines,
avionics systems, and related technologies support pilot
training pipelines for both civilian and military aviators,
serve as platforms for surveillance, logistics, and emergency
response operations, and form an integral part of the supply
chains supporting the United States Armed Forces and Federal
agencies.
(2) The People's Republic of China (PRC) has, over the past
two decades, systematically acquired United States general
aviation manufacturers, engine producers, avionics firms, and
flight training infrastructure, including through entities
wholly owned or directed by the Aviation Industry Corporation
of China (AVIC), a conglomerate designated as a Chinese
military company under section 1237 of the National Defense
Authorization Act for Fiscal Year 1999 (50 U.S.C. 1701 note)
and listed on the Non-SDN Chinese Military-Industrial Complex
Companies List (NS-CMIC List) maintained by the Office of
Foreign Assets Control.
(3) PRC entities have made more than 20 acquisitions of,
investments in, or joint venture agreements with United States
general aviation companies since 2005, spanning engine
manufacturers, airframe producers, avionics developers,
helicopter manufacturers, and flight training operators. The
pattern and pace of these transactions, their concentration in
strategically sensitive subsectors, and their alignment with
stated PRC industrial policy objectives constitute a
coordinated campaign rather than ordinary commercial investment
activity.
(4) These acquisitions have resulted in the transfer to
PRC-controlled entities of Federal Aviation Administration
(FAA) production certificates, advanced composite airframe
manufacturing expertise, high-efficiency piston engine
technology, and FAA-certified avionics integration knowledge,
capabilities that carry direct application to unmanned aerial
systems, military trainers, and dual-use aviation platforms.
(5) Congress has previously recognized analogous national
security risks in other sectors and taken corrective action,
including through the Protecting Americans from Foreign
Adversary Controlled Applications Act (Public Law 118-50),
restrictions on Huawei and ZTE Corporation equipment in United
States telecommunications networks under the Secure and Trusted
Communications Networks Act of 2019 (47 U.S.C. 1601 et seq.),
and prohibitions on AVIC-affiliated entities in United States
defense procurement. The general aviation sector warrants
equivalent congressional attention and protection.
(b) Amendments to the Defense Production Act of 1950.--Section 721
of the Defense Production Act of 1950 (50 U.S.C. 4565) is amended--
(1) in subsection (a)--
(A) by redesignating paragraphs (8) through (13) as
paragraphs (10) through (15), respectively; and
(B) by inserting after paragraph (7) the following
new paragraphs:
``(8) Covered aviation transaction.--The term `covered
aviation transaction' means any covered transaction in which--
``(A) the acquirer is a foreign person from a
country of concern; and
``(B) the United States business is a covered
general aviation entity.
``(9) Covered general aviation entity.--The term `covered
general aviation entity' means any United States business
that--
``(A) holds an FAA production certificate issued
pursuant to part 21 of title 14, Code of Federal
Regulations, for the manufacture of aircraft engines,
propellers, or airframes intended for use in the United
States civil aviation fleet;
``(B) designs, manufactures, or sells avionics or
flight control systems, including autopilot systems,
glass cockpit displays, or air-to-ground data link
systems, intended primarily for general aviation
aircraft, as that term is defined in section
40102(a)(17) of title 49, United States Code;
``(C) is a type certificate holder or production
certificate holder under part 21 of title 14, Code of
Federal Regulations, for helicopters or light
rotorcraft with a maximum certificated takeoff weight
of 12,500 pounds or less; or
``(D) holds a certificate of approval as an FAA-
certificated pilot school under part 141 of title 14,
Code of Federal Regulations, or an aviation training
center under part 142 of title 14, Code of Federal
Regulations, and is located within 50 nautical miles of
a military installation (as such term is defined in
section 802.227 of title 31, Code of Federal
Regulations).'';
(2) in subsection (b)(1)(C)(v)(IV), by adding at the end
the following:
``(hh) Covered aviation
transaction.--The Committee
shall require a declaration
under this subclause for a
covered aviation
transaction.''; and
(3) in subsection (f)--
(A) in paragraph (10), by striking ``and'' at the
end;
(B) by redesignating paragraph (11) as paragraph
(13); and
(C) by inserting after paragraph (10) the
following:
``(11) with respect to a covered aviation transaction--
``(A) the applicability of the acquirer's home
country's military-civil fusion policies, or analogous
policies, to the acquired United States business;
``(B) the dual-use potential of the products,
technologies, or manufacturing processes of the
acquired business for unmanned aerial systems or
military aviation platforms; and
``(C) the acquired business's participation in FAA
certification programs, supply chains supporting
Federal agencies, or flight training programs that
train foreign nationals;
``(12) if a business has an ultimate foreign parent entity
on the NS-CMIC List, the Entity List maintained under part 744
of title 15, Code of Federal Regulations, or the Specially
Designated Nationals and Blocked Persons List; and''.
(c) Implementing Regulations.--Not later than 180 days after the
date of enactment of this Act, the Secretary of the Treasury, in
coordination with the Secretary of Defense, the Secretary of
Transportation, and the Secretary of Commerce, shall promulgate
regulations implementing the amendments made by subsection (b).
SEC. 3. EXTENDED CFIUS REAL-ESTATE JURISDICTION FOR GENERAL AVIATION
FACILITIES.
(a) In General.--Section 721(a)(4)(B)(ii) of the Defense Production
Act of 1950 (50 U.S.C. 4565(a)(4)(B)(ii)) is further amended--
(1) in subclause (II)(bb)(CC), by striking ``and'' at the
end;
(2) in subclause (III), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(IV) is general aviation airport
certificated under part 139 of title
14, Code of Federal Regulations, or any
real property--
``(aa) used or intended to
be used as a fixed-base
operator facility, hangar,
flight school campus, or
general aviation maintenance
facility; and
``(bb) located within 50
nautical miles of a military
installation (as such term is
defined in section 802.227 of
title 31, Code of Federal
Regulations) or within 10
nautical miles of Class B or
Class C airspace surrounding a
major civil-military joint-use
airport.''.
(b) Rebuttable Presumption.--When evaluating any real estate
transaction described in subsection (a) in which the acquirer is a
foreign person from a country of concern, the Committee shall presume
that such transaction poses a risk to national security but such
presumption may be rebutted with a showing of clear and convincing
evidence that the transaction will not provide the foreign person
with--
(1) a capability to conduct surveillance, signals
collection, or intelligence gathering at or near a military
installation or restricted airspace;
(2) persistent physical access to aviation infrastructure
supporting United States civil or military operations; or
(3) a base of operations for flight training activities
that would benefit the military aviation programs of a country
of concern.
SEC. 4. REBUTTABLE PRESUMPTION OF PROHIBITION FOR FOREIGN ADVERSARY
ACQUISITIONS OF GENERAL AVIATION COMPANIES.
Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565)
is further amended by adding at the end the following:
``(r) Rebuttable Presumption of Prohibition for Covered Aviation
Transactions.--
``(1) Presumption.--Notwithstanding any other provision of
this section, a covered aviation transaction shall be
prohibited with respect to any covered aviation transaction in
which the acquirer--
``(A) is an entity owned by, controlled by, or
subject to the jurisdiction or direction of a country
of concern, including any entity in which a government
of a country of concern holds, directly or indirectly,
a 5-percent or greater equity interest;
``(B) is an entity on the Non-SDN Chinese Military-
Industrial Complex Companies List (NS-CMIC List)
maintained by the Office of Foreign Assets Control, or
any subsidiary, parent, affiliate, or successor entity
thereof;
``(C) is an entity, based on credible evidence as
determined by the Committee, that is acting as a
conduit, nominee, or front company for any entity
described in subparagraph (A) or (B); or
``(D) derives 10 percent or more of its operating
income, as determined under the General Accepted
Accounting Principles published by the Financial
Accounting Standards Board, from an entity based in a
country of concern.
``(2) Rebuttal.--The presumption established under
paragraph (1) may be rebutted only by the acquirer, by clear
and convincing evidence submitted to the Committee
demonstrating that--
``(A) the transaction does not create any risk of
transfer of technology, manufacturing know-how, FAA
certification data, or engineering talent to a country
of concern;
``(B) enforceable, verifiable mitigation measures
exist that would prevent any such transfer;
``(C) the transaction does not undermine the
availability or integrity of the United States civil
aviation supply chain; and
``(D) approval of the transaction is in the
national security interest of the United States.
``(3) No mitigation for certain entities.--With respect to
any acquirer that is an entity listed on the NS-CMIC List or
any entity in which the government of a country of concern
holds, directly or indirectly, 25 percent or greater equity or
voting interest, no mitigation agreement under subsection (l)
shall be considered sufficient to rebut the presumption
established under paragraph (1). The President may only approve
such a transaction upon a written determination to Congress,
included in the reporting required under subsection (m), that
approval is in the paramount national security interest of the
United States.''.
SEC. 5. REVIEW AND CLASSIFICATION OF GENERAL AVIATION DUAL-USE
TECHNOLOGIES.
(a) Findings.--Congress finds that certain general aviation
technologies have significant dual-use potential, including for
unmanned aerial systems, military trainers, and tactical aviation
platforms, but are not currently classified as controlled items on the
Commerce Control List (CCL) maintained pursuant to part 774 of title
15, Code of Federal Regulations, or are controlled at inadequate levels
relative to their strategic significance.
(b) Required Review.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Commerce, in coordination with
the Secretary of Defense and the Secretary of State, shall conduct a
comprehensive review of the CCL and related Export Administration
Regulations under the Export Control Reform Act of 2018 (50 U.S.C. 4811
et seq.) to determine whether the following technologies should be
newly classified or reclassified as controlled items requiring a
license for export, reexport, or in-country transfer to countries of
concern:
(1) High-efficiency piston and small turboprop engines.--
(A) Diesel-cycle and Jet-A-fuel capable
horizontally opposed piston aircraft engines producing
100 shaft horsepower or greater, including associated
type certificate data, manufacturing process know-how,
and fuel injection and ignition systems.
(B) Small turboprop engines with a maximum
continuous power output below 2,000 shaft horsepower,
including associated reduction gearboxes, full
authority digital engine control systems, and
maintenance data packages.
(C) Engine test cell equipment, tooling, and
software capable of certifying the engines described in
subparagraphs (A) and (B) to FAA or equivalent
standards.
(2) Advanced composite airframes and structural systems.--
(A) Carbon fiber and advanced composite airframe
structures, tooling, and layup processes used in the
production of high-performance general aviation
aircraft, including structural health monitoring
systems using embedded sensor arrays or acoustic
emission detection capable of real-time structural
integrity assessment.
(B) Associated design data, finite element analysis
models, and FAA-approved structural repair manuals for
composite airframes that would enable foreign entities
to reproduce or adapt airframe designs for unmanned or
military platforms.
(3) Avionics and flight control systems.--
(A) Autopilot and flight director systems capable
of coupling with a flight management system and
executing instrument approaches to Category I precision
minimums or better, when designed or adaptable for
platforms with a maximum takeoff weight below 12,500
pounds.
(B) Fly-by-wire flight control systems for general
aviation or light sport aircraft.
(C) Integrated avionics suites combining
navigation, communication, surveillance, and flight
management functions on a common software-defined
architecture, when such architecture is capable of
software reconfiguration to support unmanned flight
operations.
(D) Air-to-ground and air-to-air data link systems
operating in frequency bands allocated for aeronautical
mobile services, when combined with or capable of
integration with an autopilot or flight management
system.
(c) Report to Congress.--Not later than 270 days after the date of
enactment of this Act, the Secretary of Commerce shall submit to the
Committee on Foreign Affairs and the Committee on Armed Services of the
House of Representatives, and the Committee on Foreign Relations and
the Committee on Armed Services of the Senate, a report setting forth--
(1) the findings of the review conducted under subsection
(b);
(2) the specific Export Control Classification Number
revisions, new entries, or license requirements the Secretary
has implemented or proposes to implement with respect to each
technology category described in subsection (b); and
(3) any interagency disagreements regarding classification
decisions and how such disagreements were or are being
resolved.
(d) Wassenaar Arrangement and Multilateral Controls.--The Secretary
of State, in coordination with the Secretary of Commerce and the
Secretary of Defense, shall seek to advance analogous control measures
for the technologies described in subsection (b) through the Wassenaar
Arrangement on Export Controls for Conventional Arms and Dual-Use Goods
and Technologies and other applicable multilateral export control
regimes, consistent with United States national security and foreign
policy objectives.
SEC. 6. OUTBOUND INVESTMENT NOTIFICATION FOR GENERAL AVIATION
TECHNOLOGIES.
(a) Findings.--Congress finds that--
(1) the outbound investment notification program
established pursuant to Executive Order 14105 of August 9, 2023
(88 Fed. Reg. 54867), and the implementing regulations
promulgated by the Department of the Treasury at part 850 of
title 31, Code of Federal Regulations, do not currently
encompass general aviation-sector transactions; and
(2) United States persons investing in PRC projects
involving general aviation airframes, engines, or avionics risk
facilitating technology transfer that serves PRC Military-Civil
Fusion objectives and strengthens the aviation-industrial base
of a country of concern.
(b) Covered Outbound General Aviation Transactions.--Not later than
180 days after the date of enactment of this Act, the Secretary of the
Treasury, in consultation with the Secretary of Commerce and the
Secretary of Defense, shall promulgate regulations to require any
United States person to--
(1) submit a mandatory notification to the Department of
the Treasury before completing any transaction that would
constitute a covered outbound general aviation transaction; and
(2) for any transaction described in subsection (c)(2)(B),
obtain prior approval from the Department of the Treasury
before completing such transaction.
(c) Definitions.--For purposes of this section:
(1) Covered foreign entity.--The term ``covered foreign
entity'' means an entity organized under the laws of, or with
its principal place of business in, a country of concern.
(2) Covered outbound general aviation transaction.--The
term ``covered outbound general aviation transaction'' means
any of the following transactions by a United States person
with a covered foreign entity:
(A) Notification-required transactions.--Any
acquisition of an equity interest or contingent equity
interest in a covered foreign entity that is engaged in
the development, manufacture, or sale of--
(i) general aviation airframes or
rotorcraft structures, including composite
airframe manufacturing;
(ii) aircraft engines or propulsion systems
designed or adaptable for general aviation or
unmanned aerial system applications; or
(iii) avionics, autopilot, or flight
management systems for general aviation
platforms.
(B) Approval-required transactions.--Any
transaction described in subparagraph (A) in which the
covered foreign entity--
(i) is owned by, controlled by, or subject
to the direction of the government of a country
of concern;
(ii) is listed, or whose ultimate parent is
listed, on the NS-CMIC List; or
(iii) has, within the preceding 5 years,
entered into a formal cooperation agreement,
joint venture, or technology-sharing
arrangement with an entity of a country of
concern's military, paramilitary, or state
security apparatus.
(3) United states person.--The term ``United States
person'' has the meaning given that term in section 850.101 of
title 31, Code of Federal Regulations (or any successor
regulation).
(d) Civil Penalties.--Any United States person that fails to submit
a notification required under subsection (b)(1), or that completes a
transaction requiring prior approval under subsection (b)(2) without
such approval, shall be subject to civil monetary penalties in
accordance with section 206 of the International Emergency Economic
Powers Act (50 U.S.C. 1705), as applicable.
(e) Relationship to Existing Outbound Investment Program.--The
notification and approval requirements established pursuant to this
section shall be implemented as an amendment to, or in coordination
with, the program established under part 850 of title 31, Code of
Federal Regulations, and shall apply in addition to, and not in lieu
of, any requirements under Executive Order 14105 or any successor
order.
SEC. 7. REVIEW OF EXISTING FOREIGN ADVERSARY OWNERSHIP OF GENERAL
AVIATION COMPANIES.
Not later than 180 days after the date of enactment of this Act,
the Committee on Foreign Investment in the United States shall--
(1) conduct a comprehensive review of all previously
completed transactions in which a foreign person from a country
of concern acquired a covered general aviation entity;
(2) determine, for each such transaction, whether--
(A) the national security agreement or mitigation
measures (if any) in effect with respect to such
transaction remain adequate to protect United States
national security in light of the designations of the
acquirer or its affiliates under the NS-CMIC List, the
Department of Defense's Section 1260H list, or any
applicable export control order; and
(B) changed circumstances, including applicable
designations or new intelligence assessments, warrant
reopening the review of such transaction pursuant to
section 721 of the Defense Production Act of 1950 (50
U.S.C. 4565); and
(3) submit to the Committee on Financial Services and the
Committee on Armed Services of the House of Representatives,
and the Committee on Banking, Housing, and Urban Affairs and
the Committee on Armed Services of the Senate, a classified
report setting forth--
(A) the transactions reviewed pursuant to paragraph
(1), including the identity of each foreign acquirer
and each acquired general aviation entity;
(B) the determination made pursuant to paragraph
(2) with respect to each such transaction; and
(C) any actions taken or recommended by the
Committee as a result of such determinations, including
any recommendation for divestiture pursuant to section
721 of the Defense Production Act of 1950 (50 U.S.C.
4565).
SEC. 8. SUPPLY CHAIN INTEGRITY AUDITS FOR FOREIGN ADVERSARY-CONTROLLED
AVIATION CERTIFICATE HOLDERS.
(a) Directed Review.--Not later than 270 days after the date of
enactment of this Act, the Administrator of the Federal Aviation
Administration, in coordination with the Director of the Cybersecurity
and Infrastructure Security Agency and the Secretary of Defense, shall
conduct a comprehensive supply chain integrity audit of all avionics
systems, flight control systems, and aircraft engine control systems
(including full authority digital engine control systems) that are
designed, manufactured, or maintained by any covered general aviation
entity that is owned, controlled, or directed by a foreign person from
a country of concern and that holds any of the following:
(1) A production certificate issued pursuant to part 21 of
title 14, Code of Federal Regulations.
(2) A parts manufacturer approval issued pursuant to part
21 of title 14, Code of Federal Regulations.
(3) A technical standard order authorization issued
pursuant to part 21 of title 14, Code of Federal Regulations.
(b) Scope.--The audit required under subsection (a) shall assess--
(1) whether any such system contains unauthorized hardware
components, embedded firmware, or software code capable of
enabling remote access, data exfiltration, or operational
interference by a foreign person;
(2) whether existing FAA certification processes are
adequate to detect such components; and
(3) whether any mitigation agreements in effect with
respect to such entities adequately address supply chain
integrity risks.
(c) Technical Assistance.--In carrying out the audit required under
subsection (a), the FAA Administrator and the Director of the
Cybersecurity and Infrastructure Security Agency may request technical
assistance from the Director of the National Security Agency and the
Director of the Defense Advanced Research Projects Agency, including
hardware forensic analysis, firmware reverse engineering, and
adversarial threat assessment support. The Director of the National
Security Agency and the Director of the Defense Advanced Research
Projects Agency are authorized to provide such assistance consistent
with their respective statutory authorities.
(d) Remedial Authority.--Upon a finding that any system audited
under subsection (a) contains a component described in subsection
(b)(1), the FAA Administrator may, consistent with part 39 of title 14,
Code of Federal Regulations, issue an airworthiness directive requiring
inspection, modification, or replacement of the affected system.
(e) Report.--Not later than 1 year after the date of enactment of
this Act, the FAA Administrator shall submit to the relevant
congressional committees a report, which may include a classified
annex, describing the findings of the audit and any remedial actions
taken or recommended.
SEC. 9. RESTRICTIONS ON FEDERAL FINANCIAL ASSISTANCE; FOREIGN OWNERSHIP
DISCLOSURE REQUIREMENT.
(a) Prohibition.--Notwithstanding any other provision of law, no
Federal funds appropriated or otherwise made available on or after the
date of enactment of this Act shall be obligated or expended as a loan,
loan guarantee, grant, or contract with any covered general aviation
entity that--
(1) that is owned by, controlled by, or subject to the
direction of--
(A) a foreign person from a country of concern;
(B) any entity listed on the NS-CMIC List; or
(C) any entity in which the government of a country
of concern holds, directly or indirectly, a 5 percent
or greater equity interest; or
(2) that derives 10 percent or more of its operating
income, as determined under the General Accepted Accounting
Principles published by the Financial Accounting Standards
Board, from an entity based in a country of concern.
(b) Clawback Authority.--The head of any Federal agency shall take
all available legal measures to recover Federal financial assistance,
including through demand letters, administrative offset under section
3716 of title 31, United States Code, or referral to the Department of
Justice for civil recovery under section 516 of title 28, United States
Code, where--
(1) such assistance was obligated or expended on or after
the date of enactment of this Act in violation of the
prohibition established under subsection (a); or
(2) such assistance was obligated or expended on or after
the date of enactment of this Act to an entity that
subsequently became subject to the prohibition under subsection
(a) as a result of a post-enactment change in ownership or
control.
(c) Covered Federal Financial Assistance.--For purposes of this
section, the term ``Federal financial assistance'' includes--
(1) loans, grants, or loan guarantees provided under any
provision of Federal law, including programs administered by
the Small Business Administration under the Small Business Act
(15 U.S.C. 631 et seq.);
(2) contracts or subcontracts awarded pursuant to the
Federal Acquisition Regulation (48 CFR chpt. 1); and
(3) any other direct or indirect Federal financial benefit
of a value exceeding $50,000 in any 12-month period.
(d) Certification Requirement.--As a condition of receiving any
Federal financial assistance described in subsection (c), a covered
general aviation entity shall annually certify to the relevant Federal
agency, under penalty of section 1001 of title 18, United States Code,
that--
(1) it is not owned, controlled, or directed by a foreign
person from a country of concern and that no such foreign
person holds, directly or indirectly, 5 percent or more of any
class of its equity or voting interests; and
(2) it does not derive 10 percent or more of its operating
income, as determined under the General Accepted Accounting
Principles published by the Financial Accounting Standards
Board, from an entity based in a country of concern.
(e) Foreign Ownership Disclosure Requirement.--
(1) In general.--Any covered general aviation entity that
is owned, controlled, or directed, directly or indirectly, by a
foreign person holding 5 percent or more of any class of equity
or voting interests or that derives 10 percent or more of its
operating income (as determined under the General Accepted
Accounting Principles published by the Financial Accounting
Standards Board) from an entity based in a country of concern
shall prominently disclose such foreign ownership in each of
the following:
(A) FAA production certificate filings.--Any
application for, renewal of, or amendment to a
production certificate issued pursuant to part 21 of
title 14, Code of Federal Regulations, shall include a
disclosure statement identifying--
(i) the name, nationality, and jurisdiction
of organization of each foreign person holding,
directly or indirectly, 5 percent or more of
any class of equity or voting interests in the
applicant or certificate holder;
(ii) the percentage interest held by each
such foreign person; and
(iii) whether any such foreign person is an
entity of a country of concern, is listed on
the NS-CMIC List, the Entity List maintained
under part 744 of title 15, Code of Federal
Regulations, or the Specially Designated
Nationals and Blocked Persons List.
(B) Federal contract and grant applications.--Any
application, offer, bid, or proposal submitted by a
covered general aviation entity in connection with any
Federal contract, subcontract, grant, cooperative
agreement, or other Federal financial assistance
described in subsection (c) shall include, on the face
of such submission, a disclosure statement containing
the information required under subparagraph (A)(i)
through (iii).
(2) Implementing regulations.--Not later than 180 days
after the date of enactment of this Act, the Administrator of
the FAA and the Federal Acquisition Regulatory Council shall
each promulgate such regulations as may be necessary to
implement paragraph (1) within their respective jurisdictions,
including regulations specifying the form, placement, and
timing of required disclosure statements.
(3) Penalties.--
(A) Any covered general aviation entity that
knowingly fails to make a disclosure required under
paragraph (1), or that knowingly makes a false or
misleading disclosure, shall be subject to civil
monetary penalties as determined by the relevant
Federal agency.
(B) In addition to the civil penalties under
subparagraph (A), any knowing false or misleading
disclosure made in connection with a Federal contract,
grant, or financial assistance application shall
constitute a violation of section 1001 of title 18,
United States Code, and may subject the entity and its
responsible officers to criminal prosecution
thereunder.
(C) The FAA Administrator may suspend or revoke a
production certificate held by any entity that
knowingly fails to make or falsifies a disclosure
required under paragraph (1)(A), consistent with the
procedures under part 13 of title 14, Code of Federal
Regulations.
(4) Relationship to certification requirement.--The
disclosure requirement under this subsection is in addition to,
and shall not be construed to limit or substitute for, the
annual certification requirement under subsection (d).
SEC. 10. DEFINITIONS.
In this Act, unless otherwise provided:
(1) CFIUS.--The term ``CFIUS'' or ``Committee'' means the
Committee on Foreign Investment in the United States
established under section 721(k) of the Defense Production Act
of 1950 (50 U.S.C. 4565(k)).
(2) Country of concern.--The term ``country of concern''
has the meaning given the term in section 809 of the Defense
Production Act of 1950 (50 U.S.C. 4589).
(3) Covered general aviation entity.--The term ``covered
general aviation entity'' means any United States business
that--
(A) holds an FAA production certificate issued
pursuant to part 21 of title 14, Code of Federal
Regulations, for the manufacture of aircraft engines,
propellers, or airframes intended for use in the United
States civil aviation fleet;
(B) designs, manufactures, or sells avionics or
flight control systems, including autopilot systems,
glass cockpit displays, or air-to-ground data link
systems, intended primarily for general aviation
aircraft, as that term is defined in section
40102(a)(17) of title 49, United States Code;
(C) is a type certificate holder or production
certificate holder under part 21 of title 14, Code of
Federal Regulations, for helicopters or light
rotorcraft with a maximum certificated takeoff weight
of 12,500 pounds or less; or
(D) holds a certificate of approval as an FAA-
certificated pilot school under part 141 of title 14,
Code of Federal Regulations, or an aviation training
center under part 142 of title 14, Code of Federal
Regulations, and is located within 50 nautical miles of
a military installation (as such term is defined in
section 802.227 of title 31, Code of Federal
Regulations).
(4) FAA.--The term ``FAA'' means the Federal Aviation
Administration.
(5) General aviation.--The term ``general aviation'' has
the meaning given the term ``general aviation aircraft'' in
section 40102(a)(17) of title 49, United States Code.
(6) Military-civil fusion.--The term ``military-civil
fusion'' means the strategy of the People's Republic of China,
codified in the PRC's National Intelligence Law of 2017 and
related policies, that requires civilian entities, including
private companies, to support, cooperate with, and strengthen
the military, defense mobilization, and intelligence apparatus
of the PRC upon demand.
(7) NS-CMIC list.--The term ``NS-CMIC List'' means the Non-
SDN Chinese Military-Industrial Complex Companies List
maintained by the Office of Foreign Assets Control of the
Department of the Treasury pursuant to Executive Order 13959
(85 Fed. Reg. 73185), as amended, or any successor list.
(8) Type certificate; production certificate.--The terms
``type certificate'' and ``production certificate'' have the
meanings given those terms under part 21 of title 14, Code of
Federal Regulations.
SEC. 11. SEVERABILITY.
If any provision of this Act, or the application of any such
provision to any person or circumstance, is held to be
unconstitutional, the remainder of this Act, and the application of the
remaining provisions to any person or circumstance, shall not be
affected thereby.
SEC. 12. EFFECTIVE DATE.
Except as otherwise specifically provided in this Act, this Act
shall take effect on the date of its enactment. The amendments made by
sections 2, 3, and 4 shall apply to transactions for which a definitive
agreement is entered into on or after the date of enactment. The review
directed under section 7 shall apply to all previously completed
transactions, regardless of the date of completion. The prohibition and
clawback authority under section 9(a) and (b) shall apply only to
Federal financial assistance obligated or expended on or after the date
of enactment; nothing in section 9 shall be construed to impose
liability, require repayment, or authorize recovery with respect to any
Federal financial assistance obligated or expended prior to the date of
enactment, except as may be available under the False Claims Act (31
U.S.C. 3729 et seq.) or other law in effect at the time such assistance
was provided.
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