[House Report 116-579]
[From the U.S. Government Publishing Office]


116th Congress }                                          { Report
                        HOUSE OF REPRESENTATIVES
  2d Session   }                                          { 116-579

======================================================================
 
          AIRCRAFT CERTIFICATION REFORM AND ACCOUNTABILITY ACT

                                _______
                                

 November 16, 2020.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

         Mr. DeFazio, from the Committee on Transportation and
                Infrastructure, submitted the following

                              R E P O R T

                        [To accompany H.R. 8408]

    The Committee on Transportation and Infrastructure, to whom 
was referred the bill (H.R. 8408) to direct the Administrator 
of the Federal Aviation Administration to require certain 
safety standards relating to aircraft, and for other purposes, 
having considered the same, reports favorably thereon without 
amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose of Legislation...........................................     1
Background and Need for Legislation..............................     2
Hearings.........................................................     3
Legislative History and Consideration............................     4
Committee Votes..................................................     4
Committee Oversight Findings.....................................     4
New Budget Authority and Tax Expenditures........................     4
Congressional Budget Office Cost Estimate........................     5
Performance Goals and Objectives.................................     5
Duplication of Federal Programs..................................     5
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     5
Federal Mandates Statement.......................................     5
Preemption Clarification.........................................     6
Advisory Committee Statement.....................................     6
Applicability to Legislative Branch..............................     6
Section-by-Section Analysis of the Legislation...................     6
Changes in Existing Law Made by the Bill, as Reported............    12

                         Purpose of Legislation

    The purpose of H.R. 8408, the ``Aircraft Certification 
Reform and Accountability Act,'' is to improve aviation safety 
by reforming the Federal Aviation Administration (FAA) aircraft 
certification process; ensure that the FAA and aircraft 
manufacturers develop and maintain robust safety cultures; 
establish enhanced safety requirements related to the design of 
new aircraft, engines, propellers, and appliances, as well as 
enhanced requirements for the FAA's processes for certifying 
new designs as safe; and understand and address issues 
identified related to international pilot training, human 
factors, and automation in the cockpit.

                  Background and Need for Legislation

    Two crashes involving Boeing 737 MAX airplanes within five 
months of each other--Lion Air flight 610 in October 2018 and 
Ethiopian Airlines flight 302 in March 2019--led to the 
combined deaths of 346 people, including eight Americans, and 
resulted in the longest worldwide grounding of a transport-
category airplane in civil aviation history. The investigations 
and inquiries responding to the accidents revealed issues with 
the design and development of the 737 MAX. One issue was with a 
new software system in the airplane's flight control computer 
called the maneuvering characteristics augmentation system 
(MCAS), whose erroneous activation applied nose-down control 
forces without pilot input, creating conditions to which the 
pilots in both accidents were unable to appropriately respond. 
In addition, these investigations and inquiries revealed issues 
with the FAA's processes for certifying new aircraft designs 
and the FAA's oversight of the agency's organization 
designation authorization (ODA) program--the means by which the 
FAA grants designee authority to companies to conduct certain 
functions on behalf of the agency, including approving aircraft 
design changes. Finally, the expert reviews and investigations 
also raised questions about pilot training programs, human 
factors, and automation in the cockpit. Combined, these issues, 
as well as other factors--revealed in reports issued by the 
National Transportation Safety Board (NTSB), the Joint 
Authorities Technical Review (JATR), the Inspector General of 
the U.S. Department of Transportation (DOT IG), the Safety 
Oversight and Certification Advisory Committee, and others--
contributed to the two 737 MAX accidents.
    The Committee, under the leadership of Chair Peter DeFazio 
and Subcommittee on Aviation Chair Rick Larsen, conducted an 
18-month investigation into the design, development, and 
certification of the 737 MAX airplane, and related matters, 
that contributed to the Lion Air flight 610 and Ethiopian 
Airlines flight 302 accidents. Throughout the course of the 
investigation, the Committee held five hearings on issues 
related to the 737 MAX program; the two Chairs wrote 23 
oversight letters, including 12 records request letters; the 
Committee received an estimated 600,000 pages of records from 
The Boeing Company, the FAA, airlines, and others; and 
conducted two dozen official interviews with current Boeing and 
FAA employees and others. Democratic Committee staff also spoke 
with a wide range of aviation safety experts, engineers, 
software developers, and former Boeing and FAA employees. In 
addition, Democratic Committee staff were informed by records 
and information provided by numerous whistleblowers who 
contacted the Committee directly with their concerns. The 
investigation concluded with a final report produced by 
Democratic staff of the Committee and issued on September 15, 
2020, which contained investigative themes, findings, and 
observations regarding deficiencies in the processes under 
which Boeing designed the 737 MAX as well as lapses in FAA 
oversight that informed the development of H.R. 8408 for the 
Democratic Members of the Committee.
    The Committee also received reports and testimony from 
various experts, including expert panels, boards, and 
committees, tasked with reviewing the two accidents as well as 
the design, certification, manufacturing, and operation of the 
Boeing 737 MAX. These expert reviews included those conducted 
by the NTSB, the JATR, the DOT IG, the Safety Oversight and 
Certification Advisory Committee, the Secretary of 
Transportation's Special Committee to Review the FAA's Aircraft 
Certification Process, the Technical Advisory Board, and 
others. These expert reviews informed the development of H.R. 
8408 for the Republican Members of the Committee.

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 of the 
116th Congress--
          (1) The following hearing was used to develop or 
        consider H.R. 8408:
    On December 11, 2019, the Committee held a hearing titled 
``The Boeing 737 MAX: Examining the Federal Aviation 
Administration's Oversight of the Aircraft's Certification.'' 
The Committee received testimony from, on the first panel, Hon. 
Stephen M. Dickson, Administrator, accompanied by Mr. Earl 
Lawrence, Executive Director, Aircraft Certification Service, 
both of the FAA, and Mr. Matthew Kiefer, Member, Technical 
Advisory Board; and on the second panel, Mr. Edward F. Pierson, 
retired Boeing employee; Mr. G. Michael Collins, retired FAA 
employee; Mica R. Endsley, PhD, President, SA Technologies, 
testifying on behalf of the Human Factors and Ergonomics 
Society; and Mr. John Cox, President and Chief Executive 
Officer, Safety Operating Systems.
          (2) The following related hearings were held:
    On May 15, 2019, the Subcommittee on Aviation held a 
hearing titled ``Status of the Boeing 737 MAX.'' The 
Subcommittee received testimony from Mr. Daniel K. Elwell, 
Acting Administrator, accompanied by Mr. Earl Lawrence, 
Executive Director, Aircraft Certification, both of the FAA; 
and Hon. Robert L. Sumwalt, III, Chair, accompanied by Ms. Dana 
Schulze, Deputy Director, both of the NTSB.
    On June 19, 2019, the Subcommittee on Aviation held a 
hearing titled ``Status of the Boeing 737 MAX: Stakeholder 
Perspectives.'' The Subcommittee received testimony from Ms. 
Sharon Pinkerton, Senior Vice President, Legislative and 
Regulatory Policy, Airlines for America; Mr. Daniel Carey, 
President, Allied Pilots Association; Chesley Sullenberger, 
Pilot, US Airways (Retired); Ms. Sara Nelson, International 
President, Association of Flight Attendants-CWA; and Hon. J. 
Randolph ``Randy'' Babbitt, Former Administrator, FAA.
    On July 17, 2019, the Subcommittee on Aviation held a 
hearing titled ``State of Aviation Safety.'' The Subcommittee 
received testimony from, on the first panel, Mr. Paul Njoroge, 
husband of Carolyne Karanja, father of Ryan Njuguna, Kelli 
Pauls, Rubi Pauls, and son-in-Law of Anne Karanja, Victims of 
Flight ET302, testifying on behalf of the Families of Ethiopian 
Airlines Flight 302, accompanied by Mr. Michael Stumo, father 
of Samya Stumo, victim of ET302; and on the second panel, Ms. 
Dana Schulze, Acting Director, Office of Aviation Safety, NTSB; 
Mr. Joseph G. DePete, President, Air Line Pilots Association, 
International; Ms. Lori Bassani, National President, The 
Association of Professional Flight Attendants; Mr. Michael 
Perrone, National President, Professional Aviation Safety 
Specialists; and Mr. John Samuelsen, International President, 
Transport Workers Union.
    On October 30, 2019, the Committee held a hearing titled 
``The Boeing 737 MAX: Examining the Design, Development, and 
Marketing of the Aircraft.'' The Committee received testimony 
from Mr. Dennis A. Muilenburg, President and Chief Executive 
Officer; and Mr. John Hamilton, Vice President and Chief 
Engineer, Boeing Commercial Airplanes, both from The Boeing 
Company.

                 Legislative History and Consideration

    H.R. 8408 was introduced in the House on September 29, 
2020, by Mr. DeFazio of Oregon, Mr. Graves of Missouri, Mr. 
Larsen of Washington, and Mr. Graves of Louisiana, and referred 
to the Committee on Transportation and Infrastructure. Within 
the Committee, H.R. 8408 was referred to the Subcommittee on 
Aviation.
    On September 30, 2020, the Subcommittee on Aviation was 
discharged from further consideration of H.R. 8408.
    The Committee met in open session to consider H.R. 8408 on 
September 30, 2020, and ordered the measure to be reported to 
the House with a favorable recommendation, without amendment, 
by voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires each committee report to include the 
total number of votes cast for and against on each record vote 
on a motion to report and on any amendment offered to the 
measure or matter, and the names of those members voting for 
and against.
    There were no recorded votes taken in connection with 
consideration of H.R. 8408.

                      Committee Oversight Findings

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
Committee's oversight findings and recommendations are 
reflected in this report.

               New Budget Authority and Tax Expenditures

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has requested 
but not received a cost estimate for this bill from the 
Director of Congressional Budget Office. The Committee has 
requested but not received from the Director of the 
Congressional Budget Office a statement as to whether this bill 
contains any new budget authority, spending authority, credit 
authority, or an increase or decrease in revenues or tax 
expenditures. The Chairman of the Committee shall cause such 
estimate and statement to be printed in the Congressional 
Record upon its receipt by the Committee.

               Congressional Budget Office Cost Estimate

    With respect to the requirement of clause 3(c)(3) of rule 
XIII of the Rules of the House of Representatives, a cost 
estimate provided by the Congressional Budget Office pursuant 
to section 402 of the Congressional Budget Act of 1974 was not 
made available to the Committee in time for the filing of this 
report. The Chairman of the Committee shall cause such estimate 
to be printed in the Congressional Record upon its receipt by 
the Committee.

                    Performance Goals and Objectives

    With respect to the requirement of clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, the 
performance goal and objective of this legislation is to 
improve the FAA's certification process for new aircraft, 
engines, and other components; to provide the agency with 
sufficient resources and technical expertise to perform its 
certification functions; to ensure robust FAA oversight of U.S. 
aircraft manufacturers; to maintain the safety of U.S. 
manufactured aircraft and global air travel which relies on 
such aircraft; and to further understand and address issues 
identified by experts related to international pilot training, 
human factors, and automation in the cockpit.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that no provision 
of H.R. 8408 establishes or reauthorizes a program of the 
federal government known to be duplicative of another federal 
program, a program that was included in any report from the 
Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

   Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    In compliance with clause 9 of rule XXI of the Rules of the 
House of Representatives, this bill, as reported, contains no 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(e), 9(f), or 9(g) of the rule 
XXI.

                       Federal Mandates Statement

    An estimate of federal mandates prepared by the Director of 
the Congressional Budget Office pursuant to section 423 of the 
Unfunded Mandates Reform Act was not made available to the 
Committee in time for the filing of this report. The Chairman 
of the Committee shall cause such estimate to be printed in the 
Congressional Record upon its receipt by the Committee.

                        Preemption Clarification

    Section 423 of the Congressional Budget Act of 1974 
requires the report of any Committee on a bill or joint 
resolution to include a statement on the extent to which the 
bill or joint resolution is intended to preempt state, local, 
or tribal law. The Committee finds that H.R. 8408 does not 
preempt any state, local, or tribal law.

                      Advisory Committee Statement

    Section 20 directs the FAA to initiate an expert safety 
review as well as a call to action safety review. The Committee 
finds that the FAA can carry out the functions of these review 
panels by utilizing either an aviation rulemaking committee or 
an advisory committee already in existence, or by enlarging the 
mandate of an existing advisory committee.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act (Public Law 
104-1).

             Section-by-Section Analysis of the Legislation


Section 1. Short title; Table of contents

    This section provides that this bill may be cited as the 
``Aircraft Certification Reform and Accountability Act'' and 
sets the table of contents for this measure.

Sec. 2. Safety management systems

    This section requires the FAA to issue regulations for 
holders of both a type certificate and a production 
certificate, such as aircraft and other aerospace industry 
manufacturers, to adopt safety management systems (SMS) 
consistent with international standards and practices. An SMS 
adopted under this section must contain a confidential employee 
reporting system that includes non-punitive provisions through 
which employees can report hazards and safety concerns, as well 
as a code of ethics emphasizing safety as the highest priority 
for a manufacturer's officers and employees. This section also 
directs that the required confidential employee reporting 
system be implemented in a manner consistent with other 
voluntary reporting programs administered by the FAA 
Administrator.

Sec. 3. Expert review of organization designation authorizations for 
        transport airplanes

    This section convenes an independent expert review panel--
comprised of representatives of the FAA, National Aeronautics 
and Space Administration, U.S. airlines, manufacturers of 
aircraft and aircraft components, labor unions representing 
airline pilots, production employees, and FAA engineers and 
safety inspectors, other ODA holders, and other independent 
subject-matter experts--to review The Boeing Company's ODA, 
safety culture, and capability to perform FAA-delegated 
functions. This section directs the panel to make 
recommendations on any deficiencies found during the review.
    This section also authorizes the FAA Administrator to 
limit, suspend, or terminate Boeing's ODA if the Administrator 
deems it necessary based on the review panel's findings and 
requires the FAA Administrator to report to Congress on the 
status of procedures under which the agency will conduct 
focused oversight of Boeing's processes for performing FAA-
delegated functions.

Sec. 4. Certification oversight staff

    This section authorizes $27,000,000 for each of fiscal 
years 2021 through 2023 in new appropriations for the FAA to 
recruit and retain engineers, safety inspectors, human factors 
specialists, software and cybersecurity experts, and other 
qualified technical experts who perform duties related to the 
certification of aircraft, engines, and other components. This 
section clarifies that nothing in this section vests in any 
exclusive bargaining representative any management right of the 
FAA Administrator, and any action taken under this section is 
subject to the availability of appropriations.

Sec. 5. Disclosure of safety-critical information

    This section requires manufacturers to disclose to the FAA 
certain safety-critical information related to an aircraft, 
including information regarding systems that manipulate flight 
controls without direct pilot input or commands, correct 
adverse handling qualities, or compensate for unstable 
aerodynamic properties, as well as other systems whose failure 
or erroneous activation would present a risk rated hazardous or 
catastrophic. This section requires that any aircraft flight 
manual and flight crew operating manual contain a description 
of such a system and flight crew procedures for responding to a 
failure or aberrant operation of such system. This section 
imposes up to a $1 million civil penalty for a violation of the 
disclosure requirements and directs the FAA to revoke an 
airline transport pilot certificate held by an individual who 
fails to disclose such safety-critical information on behalf of 
a manufacturer. The section also repeals unused FAA design and 
production organization certification authorities.

Sec. 6. Periodic reviews of organization designation authorizations

    This section directs the FAA to conduct a comprehensive 
review of each manufacturing ODA holder's capability to meet 
FAA regulations based on the holder's organizational 
structures, requirements applicable to its officers and 
employees, and safety culture. The review, to be conducted 
every seven years, must include an assessment of the 
effectiveness of, and organization-wide adherence to, the ODA 
holder's SMS and voluntary safety reporting system.

Sec. 7. Limitations on delegation

    This section codifies an existing FAA policy that 
prohibits, with some exceptions, FAA delegation to an aircraft 
manufacturer the ability to certify on behalf of the agency the 
design of a ``novel or unusual design feature'' that results in 
a major change to an aircraft type design. The FAA may delegate 
such a matter when the FAA Administrator determines it is a 
routine task, or when, during the course of the certification 
process, the Administrator determines it no longer relates to a 
novel or unusual design feature. This section also prohibits 
FAA delegation of a certification function to a manufacturer 
solely because the agency lacks the qualified personnel or 
expertise to handle the function internally.

Sec. 8. Oversight of organization designation authorization unit 
        members

    Beginning one year after the date of enactment of this Act, 
this section requires the FAA Administrator to approve each new 
individual selected by an ODA holder engaged in the design of 
an aircraft, aircraft engine, propeller, or appliance before 
they become an authorized representative (or ODA unit member), 
who are employees of a manufacturer granted special permission 
to act on the FAA's behalf in validating compliance of aircraft 
systems and designs with FAA requirements. This section 
requires new ODA unit members to meet qualifications issued by 
the Administrator, such as the knowledge, technical 
proficiency, and moral character of such individual. This 
section authorizes the FAA Administrator to rescind an approval 
of an approved individual to serve as an ODA unit member at any 
time, for any reason. Notwithstanding the applicability of this 
section to new ODA unit members, this section directs the FAA 
to complete a review of each current Boeing ODA unit member to 
ensure each individual meets the agency's minimum 
qualifications issued under this section. This section also 
authorizes $3,000,000 for each of fiscal years 2021 through 
2023 in new appropriations for the FAA to ensure adequate 
staffing and resources necessary to undertake the work required 
under this section.
    This section imposes a civil penalty for any individual 
employed by an ODA holder who interferes with (e.g., harasses, 
berates, or threatens) an ODA unit member's performance of 
authorized functions on behalf of the FAA and requires all ODA 
unit members to promptly report any cases of interference 
experienced or witnessed at a company.
    This section creates a process for lateral communications 
so that FAA employees with certification responsibilities may 
directly contact non-managerial employees of an aircraft 
manufacturer for consultation regarding the certification of 
aircraft design, production, and other matters. This section 
prohibits a manufacturer from prohibiting or imposing any 
condition or restriction on its employees from making such 
contact with FAA employees.
    This section repeals previously enacted statutory direction 
related to the ODA program.

Sec. 9. Integrated project teams

    This section requires the FAA to convene an 
interdisciplinary integrated project team with specialists from 
the agency's Aircraft Certification Service and the Flight 
Standards Service at the outset of a certification program for 
a new airplane to ensure that engineers and pilots are 
operating from the same set of assumptions regarding airplane 
systems, system safety assessments, human factors, pilot 
response to non-normal conditions, and airplane-level safety 
effects of system failures.

Sec. 10. Oversight integrity briefing

    This section requires the FAA to brief Congress on specific 
measures the agency has taken to reinforce that each FAA 
employee responsible for overseeing an aircraft manufacturer's 
ODA performs their work in accordance with safety management 
principles and in the public interest of aviation safety.

Sec. 11. Appeals of certification decisions

    This section directs the FAA Administrator to issue an 
order establishing an appeal process to review an FAA 
employee's decision regarding a manufacturer's compliance with 
applicable design regulation. This section also prohibits FAA 
leadership and manufacturing executives from communicating 
about the dispute outside of the established review process 
unless those communications are publicly disclosed.

Sec. 12. Employment restrictions

    This section implements a one-year cooling off period for 
incoming FAA employees from overseeing their former aerospace 
manufacturer employer. This section also implements a two-year 
cooling off period for former FAA certification employees 
representing their new employer before the FAA if they were 
responsible for overseeing that employer while at FAA, 
consistent with existing aviation safety inspector 
restrictions.

Sec. 13. Professional development and skills enhancement

    This section directs the FAA to develop a program for 
regular recurrent training of FAA engineers, inspectors, and 
other subject matter experts in accordance with the training 
strategy developed pursuant to section 231 of the FAA 
Reauthorization Act of 2018 (P.L. 112-95). This section also 
requires the FAA, to the maximum extent practicable, to 
implement measures that provide such employees with diverse 
professional opportunities to expand their knowledge and skills 
and minimize the likelihood of inappropriate bias toward a 
regulated company.

Sec. 14. Voluntary safety reporting program

    This section directs the FAA, in collaboration with labor 
groups representing certain FAA employees, to implement a 
confidential voluntary safety reporting program for FAA 
engineers, safety inspectors, systems safety specialists, and 
other subject matter experts to identify and report potential 
safety issues or concerns. This section directs that the 
confidential voluntary safety reporting system be implemented 
in a manner consistent with other voluntary safety reporting 
systems administered by the FAA Administrator.

Sec. 15. Compensation limitation

    This section prohibits an FAA employee from receiving a 
compensation adjustment solely on the basis of meeting or 
exceeding a deadline related to the completion of a 
certification function.

Sec. 16. System safety assessments and other requirements

    This section directs the FAA to require an applicant for an 
amended type certificate for a transport airplane (as defined 
in this Act) to perform a system safety assessment with respect 
to each proposed design change that the Administrator 
determines is significant, considering the airplane-level 
effects of individual failures and realistic pilot response 
times. This section requires the FAA to review each system 
safety assessment for sufficiency and adequate consideration of 
the airplane-level effects of individual failures and realistic 
pilot response times.

Sec. 17. Flight crew alerting

    This section prohibits the FAA from issuing a type 
certificate for a new airliner design unless the airplane is 
equipped with a centralized crew alerting system that helps a 
pilot differentiate, prioritize, and respond to warnings, 
cautions, and advisories activated on the airplane.

Sec. 18. Amended type certificates

    This section directs the FAA to exercise leadership in the 
creation of international policies and standards relating to 
the issuance of amended type certificates for new airplane 
designs. This section also requires the FAA to revise and 
improve the process for issuing amended type certificates based 
on the agency's international harmonization efforts and other 
requirements, including establishing the extent to which 
certain changes to an airplane's design are so significant that 
a new type certification process is warranted.

Sec. 19. Whistleblower protections

    This section extends the whistleblower protections 
currently provided to air carrier employees to employees of 
manufacturing ODAs. This includes the prohibition on 
discharging or taking an adverse employment action against an 
employee due to the employee providing to the employer or 
Federal Government information relating to non-compliance with 
FAA regulations or orders.

Sec. 20. Pilot training

    This section requires the FAA to independently review a 
proposal by a transport airplane manufacturer in setting pilot 
training requirements for an airliner. This section prohibits 
such manufacturer from making assurances regarding certain 
pilot training requirements to customers before the FAA 
establishes them without a clear disclaimer regarding the 
actual status of training requirements and prohibits such 
manufacturer from providing financial incentives such as 
rebates to a potential customer regarding the scope or 
magnitude of pilot training for an airplane.
    Beginning the day after the date on which the FAA issues 
regulations in response to the expert safety review required by 
this section, this section prohibits the FAA from issuing a new 
or amended type certificate to a transport airplane 
manufacturer for a transport airplane unless the manufacturer 
has demonstrated to the FAA it has accounted for realistic 
assumptions regarding pilot reaction time to non-normal 
conditions in designing the systems and instrumentation of such 
airplane.
    This section directs the FAA to initiate an expert safety 
review of assumptions relied upon by the FAA and airplane 
manufacturers, including a review of assumptions regarding the 
time presumed for pilot response to non-normal conditions, in 
designing airplane systems and instrumentation and 
consideration of the global nature of the marketplace and 
varying pilot training programs worldwide. This section also 
directs the FAA to initiate a call to action safety review of 
FAA pilot certification standards and directs the FAA to 
exercise leadership in setting global standards to improve 
airline pilot training and qualifications.

Sec. 21. Nonconformity with approved type design

    This section prohibits a manufacturer from delivering an 
aircraft that does not conform with its approved type design--
the configuration that the FAA certified as safe--except when 
multiple disclosure and other safeguards are met to ensure the 
nonconformity does not jeopardize safety. For example, the 
manufacturer must promptly notify the FAA and operators of the 
aircraft about the nonconformity, the FAA must determine the 
nonconformity does not reduce the margin of safety by any 
measure without any change in flight crew operating procedures, 
and the manufacturer agrees to correct it within a timeframe 
set by the FAA while waiving financial penalties for customers 
who wish to delay delivery of an aircraft until it is repaired. 
This section imposes an up to $1 million civil penalty for each 
nonconforming aircraft.

Sec. 22. Implementation of recommendations

    This section requires the FAA to report to Congress on the 
status of the agency's implementation of recommendations made 
by the NTSB, JATR, DOT IG, and other entities in response to 
the Lion Air flight 610 and Ethiopian Airlines flight 302 
accidents involving the Boeing 737 MAX aircraft. For any 
recommendation with which the FAA Administrator does not 
concur, the Administrator must provide to Congress a detailed 
explanation for such non-concurrence.

Sec. 23. Oversight of FAA Compliance Program

    This section directs the FAA to establish an Executive 
Council to oversee the use and effectiveness of the FAA's 
Compliance Program across the agency's program offices and make 
recommendations to the FAA Administrator on controls that 
should be issued to improve the Program's effectiveness and to 
ensure the highest levels of aviation safety.

Sec. 24. Settlement agreement

    This section expresses a sense of Congress that the FAA 
administrator should fully exercise all rights and pursue all 
remedies available to the administrator under the 2015 FAA-
Boeing settlement agreement, including a demand for full 
payment of applicable deferred civil penalties if Boeing has 
not fully performed all of its obligations incurred under the 
agreement.

Sec. 25. Human factors

    This section directs the FAA to conduct an evaluation of 
tools and methods that support the better integration of human 
factors and system safety assessments of aircraft flight deck 
and flight control systems into the FAA's certification 
process. This section directs the FAA to develop a human 
factors education program for FAA employees that teaches about 
the effects of modern flight deck systems on human performance 
and new approaches for better integration of human factors into 
aircraft design and certification.

Sec. 26. Technical corrections

    This section makes various technical corrections to ensure 
the bill coexists with the FAA's existing civil penalty 
authorities.

Sec. 27. Definitions

    This section defines the terms used in this measure 
including: ``Administration''; ``FAA''; ``Administrator''; 
``organization designation authorization''; ``congressional 
committees of jurisdiction''; ``human factors''; ``transport 
airplane''; and ``type certificate''.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                      TITLE 49, UNITED STATES CODE



           *       *       *       *       *       *       *
SUBTITLE VII--AVIATION PROGRAMS

           *       *       *       *       *       *       *


PART A--AIR COMMERCE AND SAFETY

           *       *       *       *       *       *       *


SUBPART II--ECONOMIC REGULATION

           *       *       *       *       *       *       *


CHAPTER 421--LABOR-MANAGEMENT PROVISIONS

           *       *       *       *       *       *       *


            SUBCHAPTER III--WHISTLEBLOWER PROTECTION PROGRAM

Sec. 42121. Protection of employees providing air safety information

  [(a) Discrimination Against Airline Employees.--No air 
carrier or contractor or subcontractor of an air carrier may 
discharge an employee or otherwise discriminate against an 
employee with respect to compensation, terms, conditions, or 
privileges of employment because the employee (or any person 
acting pursuant to a request of the employee)--
          [(1) provided, caused to be provided, or is about to 
        provide (with any knowledge of the employer) or cause 
        to be provided to the employer or Federal Government 
        information relating to any violation or alleged 
        violation of any order, regulation, or standard of the 
        Federal Aviation Administration or any other provision 
        of Federal law relating to air carrier safety under 
        this subtitle or any other law of the United States;
          [(2) has filed, caused to be filed, or is about to 
        file (with any knowledge of the employer) or cause to 
        be filed a proceeding relating to any violation or 
        alleged violation of any order, regulation, or standard 
        of the Federal Aviation Administration or any other 
        provision of Federal law relating to air carrier safety 
        under this subtitle or any other law of the United 
        States;
          [(3) testified or is about to testify in such a 
        proceeding; or
          [(4) assisted or participated or is about to assist 
        or participate in such a proceeding.]
  (a) Prohibited Discrimination.--A holder of a certificate 
under section 44704 or 44705 of this title, or contractor or 
subcontractor of such holder, may not discharge an employee or 
otherwise discriminate against an employee with respect to 
compensation, terms, conditions, or privileges of employment 
because the employee (or any person acting pursuant to a 
request of the employee)--
          (1) provided, caused to be provided, or is about to 
        provide (with any knowledge of the employer) or cause 
        to be provided to the employer or Federal Government 
        information relating to any violation or alleged 
        violation of any order, regulation, or standard of the 
        Federal Aviation Administration or any other provision 
        of Federal law relating to aviation safety under this 
        subtitle or any other law of the United States;
          (2) has filed, caused to be filed, or is about to 
        file (with any knowledge of the employer) or cause to 
        be filed a proceeding relating to any violation or 
        alleged violation of any order, regulation, or standard 
        of the Federal Aviation Administration or any other 
        provision of Federal law relating to aviation safety 
        under this subtitle or any other law of the United 
        States;
          (3) testified or is about to testify in such a 
        proceeding; or
          (4) assisted or participated or is about to assist or 
        participate in such a proceeding.
  (b) Department of Labor Complaint Procedure.--
          (1) Filing and notification.--A person who believes 
        that he or she has been discharged or otherwise 
        discriminated against by any person in violation of 
        subsection (a) may, not later than 90 days after the 
        date on which such violation occurs, file (or have any 
        person file on his or her behalf) a complaint with the 
        Secretary of Labor alleging such discharge or 
        discrimination. Upon receipt of such a complaint, the 
        Secretary of Labor shall notify, in writing, the person 
        named in the complaint and the Administrator of the 
        Federal Aviation Administration of the filing of the 
        complaint, of the allegations contained in the 
        complaint, of the substance of evidence supporting the 
        complaint, and of the opportunities that will be 
        afforded to such person under paragraph (2).
          (2) Investigation; preliminary order.--
                  (A) In general.--Not later than 60 days after 
                the date of receipt of a complaint filed under 
                paragraph (1) and after affording the person 
                named in the complaint an opportunity to submit 
                to the Secretary of Labor a written response to 
                the complaint and an opportunity to meet with a 
                representative of the Secretary to present 
                statements from witnesses, the Secretary of 
                Labor shall conduct an investigation and 
                determine whether there is reasonable cause to 
                believe that the complaint has merit and 
                notify, in writing, the complainant and the 
                person alleged to have committed a violation of 
                subsection (a) of the Secretary's findings. If 
                the Secretary of Labor concludes that there is 
                a reasonable cause to believe that a violation 
                of subsection (a) has occurred, the Secretary 
                shall accompany the Secretary's findings with a 
                preliminary order providing the relief 
                prescribed by paragraph (3)(B). Not later than 
                30 days after the date of notification of 
                findings under this paragraph, either the 
                person alleged to have committed the violation 
                or the complainant may file objections to the 
                findings or preliminary order, or both, and 
                request a hearing on the record. The filing of 
                such objections shall not operate to stay any 
                reinstatement remedy contained in the 
                preliminary order. Such hearings shall be 
                conducted expeditiously. If a hearing is not 
                requested in such 30-day period, the 
                preliminary order shall be deemed a final order 
                that is not subject to judicial review.
                  (B) Requirements.--
                          (i) Required showing by 
                        complainant.--The Secretary of Labor 
                        shall dismiss a complaint filed under 
                        this subsection and shall not conduct 
                        an investigation otherwise required 
                        under subparagraph (A) unless the 
                        complainant makes a prima facie showing 
                        that any behavior described in 
                        paragraphs (1) through (4) of 
                        subsection (a) was a contributing 
                        factor in the unfavorable personnel 
                        action alleged in the complaint.
                          (ii) Showing by employer.--
                        Notwithstanding a finding by the 
                        Secretary that the complainant has made 
                        the showing required under clause (i), 
                        no investigation otherwise required 
                        under subparagraph (A) shall be 
                        conducted if the employer demonstrates, 
                        by clear and convincing evidence, that 
                        the employer would have taken the same 
                        unfavorable personnel action in the 
                        absence of that behavior.
                          (iii) Criteria for determination by 
                        secretary.--The Secretary may determine 
                        that a violation of subsection (a) has 
                        occurred only if the complainant 
                        demonstrates that any behavior 
                        described in paragraphs (1) through (4) 
                        of subsection (a) was a contributing 
                        factor in the unfavorable personnel 
                        action alleged in the complaint.
                          (iv) Prohibition.--Relief may not be 
                        ordered under subparagraph (A) if the 
                        employer demonstrates by clear and 
                        convincing evidence that the employer 
                        would have taken the same unfavorable 
                        personnel action in the absence of that 
                        behavior.
          (3) Final order.--
                  (A) Deadline for issuance; settlement 
                agreements.--Not later than 120 days after the 
                date of conclusion of a hearing under paragraph 
                (2), the Secretary of Labor shall issue a final 
                order providing the relief prescribed by this 
                paragraph or denying the complaint. At any time 
                before issuance of a final order, a proceeding 
                under this subsection may be terminated on the 
                basis of a settlement agreement entered into by 
                the Secretary of Labor, the complainant, and 
                the person alleged to have committed the 
                violation.
                  (B) Remedy.--If, in response to a complaint 
                filed under paragraph (1), the Secretary of 
                Labor determines that a violation of subsection 
                (a) has occurred, the Secretary of Labor shall 
                order the person who committed such violation 
                to--
                          (i) take affirmative action to abate 
                        the violation;
                          (ii) reinstate the complainant to his 
                        or her former position together with 
                        the compensation (including back pay) 
                        and restore the terms, conditions, and 
                        privileges associated with his or her 
                        employment; and
                          (iii) provide compensatory damages to 
                        the complainant.
                If such an order is issued under this 
                paragraph, the Secretary of Labor, at the 
                request of the complainant, shall assess 
                against the person against whom the order is 
                issued a sum equal to the aggregate amount of 
                all costs and expenses (including attorneys' 
                and expert witness fees) reasonably incurred, 
                as determined by the Secretary of Labor, by the 
                complainant for, or in connection with, the 
                bringing the complaint upon which the order was 
                issued.
                  (C) Frivolous complaints.--If the Secretary 
                of Labor finds that a complaint under paragraph 
                (1) is frivolous or has been brought in bad 
                faith, the Secretary of Labor may award to the 
                prevailing employer a reasonable attorney's fee 
                not exceeding $1,000.
          (4) Review.--
                  (A) Appeal to court of appeals.--Any person 
                adversely affected or aggrieved by an order 
                issued under paragraph (3) may obtain review of 
                the order in the United States Court of Appeals 
                for the circuit in which the violation, with 
                respect to which the order was issued, 
                allegedly occurred or the circuit in which the 
                complainant resided on the date of such 
                violation. The petition for review must be 
                filed not later than 60 days after the date of 
                the issuance of the final order of the 
                Secretary of Labor. Review shall conform to 
                chapter 7 of title 5, United States Code. The 
                commencement of proceedings under this 
                subparagraph shall not, unless ordered by the 
                court, operate as a stay of the order.
                  (B) Limitation on collateral attack.--An 
                order of the Secretary of Labor with respect to 
                which review could have been obtained under 
                subparagraph (A) shall not be subject to 
                judicial review in any criminal or other civil 
                proceeding.
          (5) Enforcement of order by secretary of labor.--
        Whenever any person has failed to comply with an order 
        issued under paragraph (3), the Secretary of Labor may 
        file a civil action in the United States district court 
        for the district in which the violation was found to 
        occur to enforce such order. In actions brought under 
        this paragraph, the district courts shall have 
        jurisdiction to grant all appropriate relief including, 
        but not limited to, injunctive relief and compensatory 
        damages.
          (6) Enforcement of order by parties.--
                  (A) Commencement of action.--A person on 
                whose behalf an order was issued under 
                paragraph (3) may commence a civil action 
                against the person to whom such order was 
                issued to require compliance with such order. 
                The appropriate United States district court 
                shall have jurisdiction, without regard to the 
                amount in controversy or the citizenship of the 
                parties, to enforce such order.
                  (B) Attorney fees.--The court, in issuing any 
                final order under this paragraph, may award 
                costs of litigation (including reasonable 
                attorney and expert witness fees) to any party 
                whenever the court determines such award is 
                appropriate.
  (c) Mandamus.--Any nondiscretionary duty imposed by this 
section shall be enforceable in a mandamus proceeding brought 
under section 1361 of title 28, United States Code.
  [(d) Nonapplicability to Deliberate Violations.--Subsection 
(a) shall not apply with respect to an employee of an air 
carrier, contractor, or subcontractor who, acting without 
direction from such air carrier, contractor, or subcontractor 
(or such person's agent), deliberately causes a violation of 
any requirement relating to air carrier safety under this 
subtitle or any other law of the United States.
  [(e) Contractor Defined.--In this section, the term 
``contractor'' means a company that performs safety-sensitive 
functions by contract for an air carrier.]
  (d) Nonapplicability to Deliberate Violations.--Subsection 
(a) shall not apply with respect to an employee of a holder of 
a certificate issued under section 44704 or 44705, or a 
contractor or subcontractor thereof, who, acting without 
direction from such certificate-holder, contractor, or 
subcontractor (or such person's agent), deliberately causes a 
violation of any requirement relating to aviation safety under 
this subtitle or any other law of the United States.
  (e) Contractor Defined.--In this section, the term 
``contractor'' means--
          (1) a person that performs safety-sensitive functions 
        by contract for an air carrier or commercial operator; 
        or
          (2) a person that performs safety-sensitive functions 
        related to the design or production of an aircraft, 
        aircraft engine, propeller, appliance, or component 
        thereof by contract for a holder of a certificate 
        issued under section 44704.

           *       *       *       *       *       *       *


SUBPART III--SAFETY

           *       *       *       *       *       *       *


                     CHAPTER 447--SAFETY REGULATION

Sec.
44701. General requirements.
     * * * * * * *
44739. Pets on airplanes.
[Sec. 44737. Special rule for certain aircraft operations.]
44740. Special rule for certain aircraft operations.
44741. Approval of organization designation authorization unit members.
44742. Interference with the duties of organization designation 
          authorization unit members.
44743. Pilot training requirements.

           *       *       *       *       *       *       *


Sec. 44702. Issuance of certificates

  (a) General Authority and Applications.--The Administrator of 
the Federal Aviation Administration may issue airman 
certificates, design organization certificates, type 
certificates, production certificates, airworthiness 
certificates, air carrier operating certificates, airport 
operating certificates, air agency certificates, and air 
navigation facility certificates under this chapter. An 
application for a certificate must--
          (1) be under oath when the Administrator requires; 
        and
          (2) be in the form, contain information, and be filed 
        and served in the way the Administrator prescribes.
  (b) Considerations.--When issuing a certificate under this 
chapter, the Administrator shall--
          (1) consider--
                  (A) the duty of an air carrier to provide 
                service with the highest possible degree of 
                safety in the public interest; and
                  (B) differences between air transportation 
                and other air commerce; and
          (2) classify a certificate according to the 
        differences between air transportation and other air 
        commerce.
  (c) Prior Certification.--The Administrator may authorize an 
aircraft, aircraft engine, propeller, or appliance for which a 
certificate has been issued authorizing the use of the 
aircraft, aircraft engine, propeller, or appliance in air 
transportation to be used in air commerce without another 
certificate being issued.
  (d) Delegation.--(1) Subject to regulations, supervision, and 
review the Administrator may prescribe, the Administrator may 
delegate to a qualified private person, or to an employee under 
the supervision of that person, a matter related to--
          (A) the examination, testing, and inspection 
        necessary to issue a certificate under this chapter; 
        and
          (B) issuing the certificate.
  (2) The Administrator may rescind a delegation under this 
subsection at any time for any reason the Administrator 
considers appropriate.
  (3) A person affected by an action of a private person under 
this subsection may apply for reconsideration of the action by 
the Administrator. On the Administrator's own initiative, the 
Administrator may reconsider the action of a private person at 
any time. If the Administrator decides on reconsideration that 
the action is unreasonable or unwarranted, the Administrator 
shall change, modify, or reverse the action. If the 
Administrator decides the action is warranted, the 
Administrator shall affirm the action.
          (4) Notwithstanding any other provision of law, the 
        Administrator may not delegate a matter under this 
        subsection--
                  (A) with respect to the certification of the 
                design of a novel or unusual design feature 
                that results in a major change to a type 
                design, except when the Administrator 
                determines--
                          (i) a matter is a routine task; or
                          (ii) during the course of the 
                        certification process, that a matter no 
                        longer relates to a novel or unusual 
                        design feature; or
                  (B) on the sole basis that the Federal 
                Aviation Administration lacks a sufficient 
                number of personnel qualified or with the 
                requisite expertise to perform the function.

           *       *       *       *       *       *       *


Sec. 44704. Type certificates, production certificates, airworthiness 
                    certificates, and design and production 
                    organization certificates

  (a) Type Certificates.--
          (1) Issuance, investigations, and tests.--The 
        Administrator of the Federal Aviation Administration 
        shall issue a type certificate for an aircraft, 
        aircraft engine, or propeller, or for an appliance 
        specified under paragraph (2)(A) of this subsection 
        when the Administrator finds that the aircraft, 
        aircraft engine, propeller, or appliance is properly 
        designed and manufactured, performs properly, and meets 
        the regulations and minimum standards prescribed under 
        section 44701(a) of this title. On receiving an 
        application for a type certificate, the Administrator 
        shall investigate the application and may conduct a 
        hearing. The Administrator shall make, or require the 
        applicant to make, tests the Administrator considers 
        necessary in the interest of safety.
          (2) Specifications.--The Administrator may--
                  (A) specify in regulations those appliances 
                that reasonably require a type certificate in 
                the interest of safety;
                  (B) include in a type certificate terms 
                required in the interest of safety; and
                  (C) record on the certificate a numerical 
                specification of the essential factors related 
                to the performance of the aircraft, aircraft 
                engine, or propeller for which the certificate 
                is issued.
          (3) Special rules for new aircraft and appliances.--
        Except as provided in paragraph (4), if the holder of a 
        type certificate agrees to permit another person to use 
        the certificate to manufacture a new aircraft, aircraft 
        engine, propeller, or appliance, the holder shall 
        provide the other person with written evidence, in a 
        form acceptable to the Administrator, of that 
        agreement. Such other person may manufacture a new 
        aircraft, aircraft engine, propeller, or appliance 
        based on a type certificate only if such other person 
        is the holder of the type certificate or has permission 
        from the holder.
          (4) Limitation for aircraft manufactured before 
        august 5, 2004.--Paragraph (3) shall not apply to a 
        person who began the manufacture of an aircraft before 
        August 5, 2004, and who demonstrates to the 
        satisfaction of the Administrator that such manufacture 
        began before August 5, 2004, if the name of the holder 
        of the type certificate for the aircraft does not 
        appear on the airworthiness certificate or 
        identification plate of the aircraft. The holder of the 
        type certificate for the aircraft shall not be 
        responsible for the continued airworthiness of the 
        aircraft. A person may invoke the exception provided by 
        this paragraph with regard to the manufacture of only 
        one aircraft.
          (5) Release of data.--
                  (A) In general.--Notwithstanding any other 
                provision of law, the Administrator may make 
                available upon request, to a person seeking to 
                maintain the airworthiness or develop product 
                improvements of an aircraft, engine, propeller, 
                or appliance, engineering data in the 
                possession of the Administration relating to a 
                type certificate or a supplemental type 
                certificate for such aircraft, engine, 
                propeller, or appliance, without the consent of 
                the owner of record, if the Administrator 
                determines that--
                          (i) the certificate containing the 
                        requested data has been inactive for 3 
                        or more years, except that the 
                        Administrator may reduce this time if 
                        required to address an unsafe condition 
                        associated with the product;
                          (ii) after using due diligence, the 
                        Administrator is unable to find the 
                        owner of record, or the owner of 
                        record's heir, of the type certificate 
                        or supplemental type certificate; and
                          (iii) making such data available will 
                        enhance aviation safety.
                  (B) Engineering data defined.--In this 
                section, the term ``engineering data'' as used 
                with respect to an aircraft, engine, propeller, 
                or appliance means type design drawing and 
                specifications for the entire aircraft, engine, 
                propeller, or appliance or change to the 
                aircraft, engine, propeller, or appliance, 
                including the original design data, and any 
                associated supplier data for individual parts 
                or components approved as part of the 
                particular certificate for the aircraft, 
                engine, propeller, or appliance.
                  (C) Requirement to maintain data.--The 
                Administrator shall maintain engineering data 
                in the possession of the Administration 
                relating to a type certificate or a 
                supplemental type certificate that has been 
                inactive for 3 or more years.
          [(6) Type certification resolution process.--
                  [(A) In general.--Not later than 15 months 
                after the date of enactment of the FAA 
                Reauthorization Act of 2018, the Administrator 
                shall establish an effective, timely, and 
                milestone-based issue resolution process for 
                type certification activities under this 
                subsection.
                  [(B) Process requirements.--The resolution 
                process shall provide for--
                          [(i) resolution of technical issues 
                        at pre-established stages of the 
                        certification process, as agreed to by 
                        the Administrator and the type 
                        certificate applicant;
                          [(ii) automatic elevation to 
                        appropriate management personnel of the 
                        Federal Aviation Administration and the 
                        type certificate applicant of any major 
                        certification process milestone that is 
                        not completed or resolved within a 
                        specific period of time agreed to by 
                        the Administrator and the type 
                        certificate applicant; and
                          [(iii) resolution of a major 
                        certification process milestone 
                        elevated pursuant to clause (ii) within 
                        a specific period of time agreed to by 
                        the Administrator and the type 
                        certificate applicant.
                  [(C) Major certification process milestone 
                defined.--In this paragraph, the term ``major 
                certification process milestone'' means a 
                milestone related to a type certification 
                basis, type certification plan, type inspection 
                authorization, issue paper, or other major type 
                certification activity agreed to by the 
                Administrator and the type certificate 
                applicant.]
          (6) Nonconformity with approved type design.--
                  (A) In general.--Except as provided in 
                subparagraph (D), a holder of a production 
                certificate for an aircraft may not present a 
                nonconforming aircraft to the Administrator for 
                issuance of an airworthiness certificate.
                  (B) Civil penalty.--Notwithstanding section 
                46301, a production certificate holder who 
                knowingly violates subparagraph (A) shall be 
                liable to the Administrator for a civil penalty 
                of not more than $1,000,000 for each 
                nonconforming aircraft.
                  (C) Penalty considerations.--In determining 
                the amount of a civil penalty under 
                subparagraph (B), the Administrator shall 
                consider--
                          (i) the nature, circumstances, 
                        extent, and gravity of the violation, 
                        including the length of time the 
                        nonconformity was known but not 
                        disclosed; and
                          (ii) with respect to the violator, 
                        the degree of culpability, any history 
                        of prior violations, and the size of 
                        the business concern.
                  (D) Remedial action.--The Administrator may 
                permit a production certificate holder to 
                present a nonconforming aircraft to the 
                Administrator for an airworthiness certificate 
                if--
                          (i) the Administrator determines the 
                        nonconformity, when compared to the 
                        configuration approved as part of the 
                        type design, does not diminish by any 
                        degree the aircraft's safe operation 
                        without any change in flight crew 
                        operating procedures;
                          (ii) the Administrator determines the 
                        nonconformity was not the product of an 
                        intentional decision by the production 
                        certificate holder to alter the 
                        aircraft's configuration from the 
                        approved type design;
                          (iii) the production certificate 
                        holder has fully complied with 
                        subparagraph (E);
                          (iv) the production certificate 
                        holder agrees to correct the 
                        nonconformity on all nonconforming 
                        aircraft within a timeframe that is--
                                  (I) prescribed by the 
                                Administrator; and
                                  (II) commensurate with the 
                                severity of the nonconformity;
                          (v) the production certificate holder 
                        informs a person who is to take 
                        delivery of the nonconforming aircraft 
                        of the nonconformance prior to its 
                        delivery; and
                          (vi) the production certificate 
                        holder agrees not to impose any 
                        penalty, financial or otherwise, on a 
                        person that chooses to delay the 
                        delivery of a nonconforming aircraft 
                        until the production certificate 
                        holder, to the Administrator's 
                        satisfaction, conforms the aircraft to 
                        the approved type design of such 
                        aircraft.
                  (E) Notification and proposed remedial 
                action.--A production certificate holder shall, 
                within 5 days of determining that such 
                production certificate holder delivered a 
                nonconforming aircraft, notify the 
                Administrator, the purchaser of the airplane, 
                and (if the purchaser is a lessor) the intended 
                operator of the airplane, if known. A 
                notification under this clause shall describe--
                          (i) the nonconformity in detail; and
                          (ii) the production certificate 
                        holder's initial proposal for actions 
                        necessary to eliminate the 
                        nonconformity.
                  (F) Nonconforming aircraft defined.--In this 
                paragraph, the term ``nonconforming aircraft'' 
                means an aircraft that does not conform to the 
                approved type design for such aircraft type.
  (b) Supplemental Type Certificates.--
          (1) Issuance.--The Administrator may issue a type 
        certificate designated as a supplemental type 
        certificate for a change to an aircraft, aircraft 
        engine, propeller, or appliance.
          (2) Contents.--A supplemental type certificate issued 
        under paragraph (1) shall consist of the change to the 
        aircraft, aircraft engine, propeller, or appliance with 
        respect to the previously issued type certificate for 
        the aircraft, aircraft engine, propeller, or appliance.
          (3) Requirement.--If the holder of a supplemental 
        type certificate agrees to permit another person to use 
        the certificate to modify an aircraft, aircraft engine, 
        propeller, or appliance, the holder shall provide the 
        other person with written evidence, in a form 
        acceptable to the Administrator, of that agreement. A 
        person may change an aircraft, aircraft engine, 
        propeller, or appliance based on a supplemental type 
        certificate only if the person requesting the change is 
        the holder of the supplemental type certificate or has 
        permission from the holder to make the change.
  (c) Production Certificates.--The Administrator shall issue a 
production certificate authorizing the production of a 
duplicate of an aircraft, aircraft engine, propeller, or 
appliance for which a type certificate has been issued when the 
Administrator finds the duplicate will conform to the 
certificate. On receiving an application, the Administrator 
shall inspect, and may require testing of, a duplicate to 
ensure that it conforms to the requirements of the certificate. 
The Administrator may include in a production certificate terms 
required in the interest of safety.
  (d) Airworthiness Certificates.--(1) The registered owner of 
an aircraft may apply to the Administrator for an airworthiness 
certificate for the aircraft. The Administrator shall issue an 
airworthiness certificate when the Administrator finds that the 
aircraft conforms to its type certificate and, after 
inspection, is in condition for safe operation. The 
Administrator shall register each airworthiness certificate and 
may include appropriate information in the certificate. The 
certificate number or other individual designation the 
Administrator requires shall be displayed on the aircraft. The 
Administrator may include in an airworthiness certificate terms 
required in the interest of safety.
  (2) A person applying for the issuance or renewal of an 
airworthiness certificate for an aircraft for which ownership 
has not been recorded under section 44107 or 44110 of this 
title must submit with the application information related to 
the ownership of the aircraft the Administrator decides is 
necessary to identify each person having a property interest in 
the aircraft and the kind and extent of the interest.
  [(e) Design and Production Organization Certificates.--
          [(1) Issuance.--Beginning January 1, 2013, the 
        Administrator may issue a certificate to a design 
        organization, production organization, or design and 
        production organization to authorize the organization 
        to certify compliance of aircraft, aircraft engines, 
        propellers, and appliances with the requirements and 
        minimum standards prescribed under section 44701(a). An 
        organization holding a certificate issued under this 
        subsection shall be known as a certified design and 
        production organization (in this subsection referred to 
        as a ``CDPO'').
          [(2) Applications.--On receiving an application for a 
        CDPO certificate, the Administrator shall examine and 
        rate the organization submitting the application, in 
        accordance with regulations to be prescribed by the 
        Administrator, to determine whether the organization 
        has adequate engineering, design, and production 
        capabilities, standards, and safeguards to make 
        certifications of compliance as described in paragraph 
        (1).
          [(3) Issuance of certificates based on cdpo 
        findings.--The Administrator may rely on certifications 
        of compliance by a CDPO when making determinations 
        under this section.
          [(4) Public safety.--The Administrator shall include 
        in a CDPO certificate terms required in the interest of 
        safety.
          [(5) No effect on power of revocation.--Nothing in 
        this subsection affects the authority of the Secretary 
        of Transportation to revoke a certificate.]
  (e) Disclosure of Safety-Critical Information.--
          (1) In general.--Notwithstanding a delegation 
        described in section 44702(d), the Administrator shall 
        require an applicant for, or holder of, a type 
        certificate for a transport-category aircraft covered 
        under part 25 of title 14, Code of Federal Regulations, 
        to submit safety-critical information with respect to 
        such aircraft to the Administrator in such form, 
        manner, or time as the Administrator may require. Such 
        safety-critical information shall include--
                  (A) any design and operational details, 
                intended functions, and failure modes of any 
                system that, without being commanded by the 
                flight crew, commands the operation of any 
                safety-critical function or feature required 
                for control of an aircraft during flight or 
                that otherwise changes the flight path or 
                airspeed of an aircraft;
                  (B) the design and operational details, 
                intended functions, failure modes, and mode 
                annunciations of autopilot and autothrottle 
                systems, if applicable;
                  (C) any failure or operating condition that 
                the applicant or holder anticipates or has 
                concluded would result in an outcome with a 
                severity level of hazardous or catastrophic, as 
                defined in the appropriate Administration 
                airworthiness requirements and guidance 
                applicable to transport-category aircraft 
                defining risk severity;
                  (D) any adverse handling quality that fails 
                to meet the requirements of applicable 
                regulations without the addition of a software 
                system to augment the flight controls of the 
                aircraft to produce compliant handling 
                qualities; and
                  (E) a system safety assessment with respect 
                to a system described in subparagraph (A) or 
                (B) or with respect to any component or other 
                system for which failure or erroneous operation 
                of such component or system could result in an 
                outcome with a severity level of hazardous or 
                catastrophic, as defined in the appropriate 
                Administration airworthiness requirements and 
                guidance applicable to transport-category 
                aircraft defining risk severity.
          (2) Ongoing communications.--
                  (A) Newly discovered information.--The 
                Administrator shall require that an applicant 
                for, or holder of, a type certificate disclose 
                to the Administrator, in such form, manner, or 
                time as the Administrator may require, any 
                newly discovered information or design or 
                analysis change that would materially alter any 
                submission to the Administrator under paragraph 
                (1).
                  (B) Aircraft system development changes.--The 
                Administrator shall establish multiple 
                milestones throughout the certification process 
                at which a proposed aircraft system will be 
                assessed to determine whether any change to 
                such system during the certification process is 
                such that such system should be considered 
                novel or unusual by the Administrator.
          (3) Flight manuals.--The Administrator shall ensure 
        that an aircraft flight manual and a flight crew 
        operating manual (as appropriate or applicable) for an 
        aircraft contains a description of the operation of a 
        system described in paragraph (1)(A) and flight crew 
        procedures for responding to a failure or aberrant 
        operation of such system.
          (4) Civil penalty.--
                  (A) Amount.--Notwithstanding section 46301, 
                an applicant for, or holder of, a type 
                certificate that knowingly violates paragraph 
                (1), (2), or (3) of this subsection shall be 
                liable to the Administrator for a civil penalty 
                of not more than $1,000,000 for each violation.
                  (B) Penalty considerations.--In determining 
                the amount of a civil penalty under 
                subparagraph (A), the Administrator shall 
                consider--
                          (i) the nature, circumstances, 
                        extent, and gravity of the violation, 
                        including the length of time that such 
                        safety-critical information was known 
                        but not disclosed; and
                          (ii) with respect to the violator, 
                        the degree of culpability, any history 
                        of prior violations, and the size of 
                        the business concern.
          (5) Revocation and civil penalty for individuals.--
                  (A) In general.--The Administrator shall 
                revoke any airline transport pilot certificate 
                issued under section 44703 held by any 
                individual who, while acting on behalf of an 
                applicant for, or holder of, a type 
                certificate, knowingly makes a false statement 
                with respect to any of the matters described in 
                subparagraphs (A) through (D) of paragraph (1).
                  (B) Authority to impose civil penalty.--The 
                Administrator may impose a civil penalty under 
                section 46301 for each violation described in 
                subparagraph (A).
          (6) Rule of construction.--Nothing in this subsection 
        shall be construed to affect or otherwise inhibit the 
        authority of the Administrator to deny an application 
        by an applicant for a type certificate or to revoke a 
        type certificate of a holder of such certificate.
          (7) Definition of type certificate.--In this 
        subsection, the term ``type certificate''--
                  (A) means a type certificate issued under 
                subsection (a) or an amendment to such 
                certificate; and
                  (B) does not include a supplemental type 
                certificate issued under subsection (b).
  (f) Hearing Requirement.--The Administrator may find that a 
person has violated subsection (a)(6) or paragraph (1), (2), or 
(3) of subsection (e) and impose a civil penalty under the 
applicable subsection only after notice and an opportunity for 
a hearing. The Administrator shall provide a person--
          (1) written notice of the violation and the amount of 
        penalty; and
          (2) the opportunity for a hearing under subpart G of 
        part 13 of title 14, Code of Federal Regulations.
  (g) Certification Dispute Resolution.--
          (1) Dispute resolution process and appeals.--
                  (A) In general.--Not later than 60 days after 
                the date of enactment of this subsection, the 
                Administrator shall issue an order 
                establishing--
                          (i) an effective, timely, and 
                        milestone-based issue resolution 
                        process for type certification 
                        activities under subsection (a); and
                          (ii) a process by which a decision, 
                        finding of compliance or noncompliance, 
                        or other act of the Administration, 
                        with respect to compliance with design 
                        requirements, may be appealed by a 
                        covered person directly involved with 
                        the certification activities in dispute 
                        on the basis that such decision, 
                        finding, or act is erroneous or 
                        inconsistent with this chapter, 
                        regulations, or guidance materials 
                        promulgated by the Administrator, or 
                        other requirements.
                  (B) Escalation.--The order issued under 
                subparagraph (A) shall provide for--
                          (i) resolution of technical issues at 
                        pre-established stages of the 
                        certification process, as agreed to by 
                        the Administrator and the type 
                        certificate applicant;
                          (ii) automatic elevation to 
                        appropriate management personnel of the 
                        Administration and the type certificate 
                        applicant of any major certification 
                        process milestone that is not completed 
                        or resolved within a specific period of 
                        time agreed to by the Administrator and 
                        the type certificate applicant;
                          (iii) resolution of a major 
                        certification process milestone 
                        elevated pursuant to clause (ii) with a 
                        specific period of time agreed to by 
                        the Administrator and the type 
                        certificate applicant;
                          (iv) initial review by appropriate 
                        Administration employees of any appeal 
                        described in subparagraph (A)(ii); and
                          (v) subsequent review of any further 
                        appeal by appropriate management 
                        personnel of the Administration and the 
                        Associate Administrator for Aviation 
                        Safety.
                  (C) Disposition.--
                          (i) Written decision.--The Associate 
                        Administrator for Aviation Safety shall 
                        issue a written decision on each appeal 
                        submitted under subparagraph (A)(ii), 
                        stating the grounds for the decision of 
                        the Associate Administrator.
                          (ii) Report to congress.--Not later 
                        than December 31 of each calendar year 
                        through calendar year 2025, the 
                        Administrator shall submit to the 
                        Committee on Transportation and 
                        Infrastructure of the House of 
                        Representatives and the Committee on 
                        Commerce, Science, and Transportation 
                        of the Senate a report summarizing each 
                        appeal resolved under this subsection.
                  (D) Final review.--
                          (i) In general.--A written decision 
                        of the Associate Administrator under 
                        subparagraph (C) may be appealed to the 
                        Administrator for a final review and 
                        determination.
                          (ii) Decline to review.--The 
                        Administrator may decline to review an 
                        appeal initiated pursuant to clause 
                        (i).
                          (iii) Judicial review.--
                        Notwithstanding any other provision of 
                        law, neither a final determination of 
                        the Administrator under clause (i) nor 
                        a decision to decline to review an 
                        appeal under clause (ii) shall be 
                        subject to judicial review.
          (2) Prohibited contacts.--
                  (A) Prohibition generally.--During the course 
                of an appeal under this subsection, no covered 
                official may engage in an ex parte 
                communication with an individual representing 
                or acting on behalf of an applicant for, or 
                holder of, a certificate under this section in 
                relation to such appeal unless such 
                communication is disclosed pursuant to 
                subparagraph (B).
                  (B) Disclosure.--If, during the course of an 
                appeal under this subsection, a covered 
                official engages in, receives, or is otherwise 
                made aware of an ex parte communication, the 
                covered official shall disclose such 
                communication in the public record at the time 
                of the issuance of the written decision in 
                accordance with subsection (g)(1)(C), including 
                the time and date of the communication, subject 
                of communication, and all persons engaged in 
                such communication.
          (3) Definitions.--In this subsection:
                  (A) Covered person.--The term ``covered 
                person'' means either--
                          (i) an employee of the Administration 
                        whose responsibilities relate to the 
                        certification of aircraft, engines, 
                        propellers, or appliances; or
                          (ii) an applicant for, or holder of, 
                        a type certificate or amended type 
                        certificate issued under this section.
                  (B) Covered official.--The term ``covered 
                official'' means the following officials:
                          (i) The Executive Director or any 
                        Deputy Director of the Aircraft 
                        Certification Service.
                          (ii) The Deputy Executive Director 
                        for Regulatory Operations of the 
                        Aircraft Certification Service.
                          (iii) The Director or Deputy Director 
                        of the Compliance and Airworthiness 
                        Division of the Aircraft Certification 
                        Service.
                          (iv) The Director or Deputy Director 
                        of the System Oversight Division of the 
                        Aircraft Certification Service.
                          (v) The Director or Deputy Director 
                        of the Policy and Innovation Division 
                        of the Aircraft Certification Service.
                          (vi) The Executive Director or any 
                        Deputy Executive Director of the Flight 
                        Standards Service.
                          (vii) The Associate Administrator or 
                        Deputy Associate Administrator for 
                        Aviation Safety.
                          (viii) The Deputy Administrator of 
                        the Federal Aviation Administration.
                          (ix) The Administrator of the Federal 
                        Aviation Administration.
                          (x) Any similarly situated or 
                        successor FAA management position, as 
                        determined by the Administrator.
                  (C) Major certification process milestone.--
                The term ``major certification process 
                milestone'' means a milestone related to the 
                type certification basis, type certification 
                plan, type inspection authorization, issue 
                paper, or other major type certification 
                activity agreed to by the Administrator and the 
                type certificate applicant.
          (4) Rule of construction.--Nothing in this subsection 
        shall apply to the communication of a good-faith 
        complaint by any individual alleging--
                  (A) gross misconduct;
                  (B) a violation of title 18; or
                  (C) a violation of any of the provisions of 
                part 2635 or 6001 of title 5, Code of Federal 
                Regulations.

           *       *       *       *       *       *       *


Sec. 44711. Prohibitions and exemption

  (a) Prohibitions.--A person may not--
          (1) operate a civil aircraft in air commerce without 
        an airworthiness certificate in effect or in violation 
        of a term of the certificate;
          (2) serve in any capacity as an airman with respect 
        to a civil aircraft, aircraft engine, propeller, or 
        appliance used, or intended for use, in air commerce--
                  (A) without an airman certificate authorizing 
                the airman to serve in the capacity for which 
                the certificate was issued; or
                  (B) in violation of a term of the certificate 
                or a regulation prescribed or order issued 
                under section 44701(a) or (b) or any of 
                sections 44702-44716 of this title;
          (3) employ for service related to civil aircraft used 
        in air commerce an airman who does not have an airman 
        certificate authorizing the airman to serve in the 
        capacity for which the airman is employed;
          (4) operate as an air carrier without an air carrier 
        operating certificate or in violation of a term of the 
        certificate;
          (5) operate aircraft in air commerce in violation of 
        a regulation prescribed or certificate issued under 
        section 44701(a) or (b) or any of sections 44702-44716 
        of this title;
          (6) operate a seaplane or other aircraft of United 
        States registry on the high seas in violation of a 
        regulation under section 3 of the International 
        Navigational Rules Act of 1977 (33 U.S.C. 1602);
          (7) violate a term of an air agency, design 
        organization certificate, or production certificate or 
        a regulation prescribed or order issued under section 
        44701(a) or (b) or any of sections 44702-44716 of this 
        title related to the holder of the certificate;
          (8) operate an airport without an airport operating 
        certificate required under section 44706 of this title 
        or in violation of a term of the certificate;
          (9) manufacture, deliver, sell, or offer for sale any 
        aviation fuel or additive in violation of a regulation 
        prescribed under section 44714 of this title; or
          (10) violate section 44732 or any regulation issued 
        thereunder.
  (b) Exemption.--On terms the Administrator of the Federal 
Aviation Administration prescribes as being in the public 
interest, the Administrator may exempt a foreign aircraft and 
airmen serving on the aircraft from subsection (a) of this 
section. However, an exemption from observing air traffic 
regulations may not be granted.
  (c) Prohibition on Employment of Convicted Counterfeit Part 
Traffickers.--No person subject to this chapter may knowingly 
employ anyone to perform a function related to the procurement, 
sale, production, or repair of a part or material, or the 
installation of a part into a civil aircraft, who has been 
convicted in a court of law of a violation of any Federal law 
relating to the installation, production, repair, or sale of a 
counterfeit or fraudulently-represented aviation part or 
material.
  [(d) Postemployment Restrictions for Flight Standards 
Inspectors.--
          [(1) Prohibition.--A person holding an operating 
        certificate issued under title 14, Code of Federal 
        Regulations, may not knowingly employ, or make a 
        contractual arrangement that permits, an individual to 
        act as an agent or representative of the certificate 
        holder in any matter before the Federal Aviation 
        Administration if the individual, in the preceding 2-
        year period--
                  [(A) served as, or was responsible for 
                oversight of, a flight standards inspector of 
                the Administration; and
                  [(B) had responsibility to inspect, or 
                oversee inspection of, the operations of the 
                certificate holder.
          [(2) Written and oral communications.--For purposes 
        of paragraph (1), an individual shall be considered to 
        be acting as an agent or representative of a 
        certificate holder in a matter before the 
        Administration if the individual makes any written or 
        oral communication on behalf of the certificate holder 
        to the Administration (or any of its officers or 
        employees) in connection with a particular matter, 
        whether or not involving a specific party and without 
        regard to whether the individual has participated in, 
        or had responsibility for, the particular matter while 
        serving as a flight standards inspector of the 
        Administration.]
  (d) Post-Employment Restrictions for Inspectors and 
Engineers.--
          (1) Prohibition.--A person holding a certificate 
        issued under part 21 or 119 of title 14, Code of 
        Federal Regulations, may not knowingly employ, or make 
        a contractual arrangement that permits, an individual 
        to act as an agent or representative of such person in 
        any matter before the Administration if the individual, 
        in the preceding 2-year period--
                  (A) served as, or was responsible for 
                oversight of--
                          (i) a flight standards inspector of 
                        the Administration; or
                          (ii) an employee of the 
                        Administration with responsibility for 
                        certification functions with respect to 
                        a holder of a certificate issued under 
                        section 44704(a); and
                  (B) had responsibility to inspect, or oversee 
                inspection of, the operations of such person.
          (2) Written and oral communications.--For purposes of 
        paragraph (1), an individual shall be considered to be 
        acting as an agent or representative of a certificate 
        holder in a matter before the Administration if the 
        individual makes any written or oral communication on 
        behalf of the certificate holder to the Administration 
        (or any of its officers or employees) in connection 
        with a particular matter, whether or not involving a 
        specific party and without regard to whether the 
        individual has participated in, or had responsibility 
        for, the particular matter while serving as an 
        individual covered under paragraph (1).

           *       *       *       *       *       *       *


Sec. 44735. Limitation on disclosure of safety information

  (a) In General.--Except as provided by subsection (c), a 
report, data, or other information described in subsection (b) 
shall not be disclosed to the public by the Administrator of 
the Federal Aviation Administration pursuant to section 
552(b)(3)(B) of [title 5 if the report] title 5--
          (1) if the report , data, or other information is 
        submitted to the Federal Aviation Administration 
        voluntarily and is not required to be submitted to the 
        Administrator under any other provision of law[.]; or
          (2) if the report, data, or other information is 
        submitted to the Federal Aviation Administration 
        pursuant to section 2(d) of the Aircraft Certification 
        Reform and Accountability Act.
  (b) Applicability.--The limitation established by subsection 
(a) shall apply to the following:
          (1) Reports, data, or other information developed 
        under the Aviation Safety Action Program.
          (2) Reports, data, or other information produced or 
        collected under the Flight Operational Quality 
        Assurance Program.
          (3) Reports, data, or other information developed 
        under the Line Operations Safety Audit Program.
          (4) Reports, data, or other information produced or 
        collected for purposes of developing and implementing a 
        safety management system acceptable to the 
        Administrator.
          (5) Reports, analyses, and directed studies, based in 
        whole or in part on reports, data, or other information 
        described in paragraphs (1) through (4), including 
        those prepared under the Aviation Safety Information 
        Analysis and Sharing Program (or any successor 
        program).
  (c) Exception for De-identified Information.--
          (1) In general.--The limitation established by 
        subsection (a) shall not apply to a report, data, or 
        other information if the information contained in the 
        report, data, or other information has been de-
        identified.
          (2) De-identified defined.--In this subsection, the 
        term ``de-identified'' means the process by which all 
        information that is likely to establish the identity of 
        the specific persons or entities submitting reports, 
        data, or other information is removed from the reports, 
        data, or other information.

Sec. 44736. Organization designation authorizations

  (a) Delegations of Functions.--
          (1) In general.--Except as provided in paragraph (3), 
        when overseeing an ODA holder, the Administrator of the 
        FAA shall--
                  (A) require, based on an application 
                submitted by the ODA holder and approved by the 
                Administrator (or the Administrator's 
                designee), a procedures manual that addresses 
                all procedures and limitations regarding the 
                functions to be performed by the ODA holder[;]; 
                and
                  [(B) delegate fully to the ODA holder each of 
                the functions to be performed as specified in 
                the procedures manual, unless the Administrator 
                determines, after the date of the delegation 
                and as a result of an inspection or other 
                investigation, that the public interest and 
                safety of air commerce requires a limitation 
                with respect to 1 or more of the functions;]
                  [(C)] (B) conduct regular oversight 
                activities by inspecting the ODA holder's 
                delegated functions and taking action based on 
                validated inspection findings[; and].
                  [(D) for each function that is limited under 
                subparagraph (B), work with the ODA holder to 
                develop the ODA holder's capability to execute 
                that function safely and effectively and return 
                to full authority status.]
          (2) Duties of oda holders.--An ODA holder shall--
                  (A) perform each specified function delegated 
                to the ODA holder in accordance with the 
                approved procedures manual for the delegation;
                  (B) make the procedures manual available to 
                each member of the appropriate ODA unit; and
                  (C) cooperate fully with oversight activities 
                conducted by the Administrator in connection 
                with the delegation.
          (3) Existing oda holders.--With regard to an ODA 
        holder operating under a procedures manual approved by 
        the Administrator before the date of enactment of the 
        FAA Reauthorization Act of 2018, the Administrator 
        [shall--
                  [(A) at the request of the ODA holder and in 
                an expeditious manner, approve revisions to the 
                ODA holder's procedures manual;
                  [(B) delegate fully to the ODA holder each of 
                the functions to be performed as specified in 
                the procedures manual, unless the Administrator 
                determines, after the date of the delegation 
                and as a result of an inspection or other 
                investigation, that the public interest and 
                safety of air commerce requires a limitation 
                with respect to one or more of the functions;
                  [(C) conduct regular oversight activities by 
                inspecting the ODA holder's delegated functions 
                and taking action based on validated inspection 
                findings; and
                  [(D) for each function that is limited under 
                subparagraph (B), work with the ODA holder to 
                develop the ODA holder's capability to execute 
                that function safely and effectively and return 
                to full authority status.] shall conduct 
                regular oversight activities by inspecting the 
                ODA holder's delegated functions and taking 
                action based on validated inspection findings.
  (b) ODA Office.--
          (1) Establishment.--Not later than 120 days after the 
        date of enactment of this section, the Administrator of 
        the FAA shall identify, within the FAA Office of 
        Aviation Safety, a centralized policy office to be 
        known as the Organization Designation Authorization 
        Office or the ODA Office.
          (2) Purpose.--The purpose of the ODA Office shall be 
        to provide oversight and ensure the consistency of the 
        FAA's audit functions under the ODA program across the 
        FAA.
          (3) Functions.--The ODA Office shall--
                  (A) [(i) at the request of an ODA holder, 
                eliminate all limitations specified in a 
                procedures manual in place on the day before 
                the date of enactment of the FAA 
                Reauthorization Act of 2018 that are low and 
                medium risk as determined by a risk analysis 
                using criteria established by the ODA Office 
                and disclosed to the ODA holder, except where 
                an ODA holder's performance warrants the 
                retention of a specific limitation due to 
                documented concerns about inadequate current 
                performance in carrying out that authorized 
                function;]
                  [(ii)] (i) require, as appropriate, an ODA 
                holder to establish a corrective action plan to 
                regain authority for any retained limitations;
                  [(iii)] (ii) require, as appropriate, an ODA 
                holder to notify the ODA Office when all 
                corrective actions have been accomplished; and
                  [(iv)] (iii) when appropriate, make a 
                reassessment to determine if subsequent 
                performance in carrying out any retained 
                limitation warrants continued retention and, if 
                such reassessment determines performance meets 
                objectives, lift such limitation immediately;
                  [(B) improve FAA and ODA holder performance 
                and ensure full utilization of the authorities 
                delegated under the ODA program;]
                  [(C)] (B) develop a more consistent approach 
                to audit priorities, procedures, and training 
                under the ODA program;
                  [(D)] (C) review, in a timely fashion, a 
                random sample of limitations on delegated 
                authorities under the ODA program to determine 
                if the limitations are appropriate[;]; and
                  [(E)] (D) ensure national consistency in the 
                interpretation and application of the 
                requirements of the ODA program, including any 
                limitations, and in the performance of the ODA 
                program[; and].
                  [(F)] (E) at the request of an ODA holder, 
                review and, when appropriate, approve new 
                limitations to ODA functions.
  (c) Periodic Reviews.--
          (1) In general.--Not less than once every 7 years, 
        the Administrator shall conduct a comprehensive review 
        of the capability of each ODA holder for the design of 
        an aircraft, aircraft engine, propeller, or appliance 
        pursuant to a delegation by the Administrator under 
        section 44702(d) to meet the requirements of subpart D 
        of part 183 of title 14, Code of Federal Regulations, 
        based on the holder's organizational structures, 
        requirements applicable to officers and employees, and 
        safety culture.
          (2) Contents of review.--A comprehensive review under 
        this subsection shall include an assessment of the 
        effectiveness of, and organization-wide adherence to, 
        an ODA holder's procedures manual and voluntary safety 
        reporting system.
  [(c)] (d) Definitions.--In this section, the following 
definitions apply:
          (1) FAA.--The term ``FAA'' means the Federal Aviation 
        Administration.
          (2) ODA holder.--The term ``ODA holder'' means an 
        entity authorized to perform functions pursuant to a 
        delegation made by the Administrator of the FAA under 
        section 44702(d).
          (3) ODA unit.--The term ``ODA unit'' means a group of 
        2 or more individuals who perform, under the 
        supervision of an ODA holder, authorized functions 
        under an ODA.
          (4) Organization.--The term ``organization'' means a 
        firm, partnership, corporation, company, association, 
        joint-stock association, or governmental entity.
          (5) Organization designation authorization; oda.--The 
        term ``Organization Designation Authorization'' or 
        ``ODA'' means an authorization by the FAA under section 
        44702(d) for an organization composed of 1 or more ODA 
        units to perform approved functions on behalf of the 
        FAA.

           *       *       *       *       *       *       *


Sec. [44737.]  44740. Special rule for certain aircraft operations[.]

  (a) In General.--The operator of an aircraft with a special 
airworthiness certification in the experimental category may--
          (1) operate the aircraft for the purpose of 
        conducting a space support vehicle flight (as that term 
        is defined in [chapter] section 50902 of title 51); and
          (2) conduct such flight under such certificate 
        carrying persons or property for compensation or hire--
                  (A) notwithstanding any rule or term of a 
                certificate issued by the Administrator of the 
                Federal Aviation Administration that would 
                prohibit flight for compensation or hire; or
                  (B) without obtaining a certificate issued by 
                the Administrator to conduct air carrier or 
                commercial operations.
  (b) Limited Applicability.--Subsection (a) shall apply only 
to a space support vehicle flight that satisfies each of the 
following:
          (1) [(1)] The aircraft conducting the space support 
        vehicle flight--
                  (A) takes flight and lands at a single site 
                that is operated by an entity licensed for 
                operation under chapter 509 of title 51;
                  (B) is owned or operated by a launch or 
                reentry vehicle operator licensed under chapter 
                509 of title 51, or on behalf of a launch or 
                reentry vehicle operator licensed under chapter 
                509 of title 51;
                  (C) is a launch vehicle, a reentry vehicle, 
                or a component of a launch or reentry vehicle 
                licensed for operations pursuant to chapter 509 
                of title 51; and
                  (D) is used only to simulate space flight 
                conditions in support of--
                          (i) training for potential space 
                        flight participants, government 
                        astronauts, or crew (as those terms are 
                        defined in chapter 509 of title 51);
                          (ii) the testing of hardware to be 
                        used in space flight; or
                          (iii) research and development tasks, 
                        which require the unique capabilities 
                        of the aircraft conducting the flight.
  (c) Rules of Construction.--
          (1) Space support vehicles.--Section 44711(a)(1) 
        shall not apply to a person conducting a space support 
        vehicle flight under this section only to the extent 
        that a term of the experimental certificate under which 
        the person is operating the space support vehicle 
        prohibits the carriage of persons or property for 
        compensation or hire.
          (2) Authority of administrator.--Nothing in this 
        section shall be construed to limit the authority of 
        the Administrator of the Federal Aviation 
        Administration to exempt a person from a regulatory 
        prohibition on the carriage of persons or property for 
        compensation or hire subject to terms and conditions 
        other than those described in this section.

Sec. 44741. Approval of organization designation authorization unit 
                    members

  (a) In General.--Beginning on the date that is 1 year after 
the date of enactment of the Aircraft Certification Reform and 
Accountability Act, each individual who is selected on or after 
such date to become a member of an ODA unit by an ODA holder 
engaged in the design of an aircraft, aircraft engine, 
propeller, or appliance and performs an authorized function 
pursuant to a delegation by the Administrator of the Federal 
Aviation Administration under section 44702(d)--
          (1) shall be an employee, a contractor, or the 
        employee of a supplier of the ODA holder; and
          (2) may not become a member of such unit unless 
        approved by the Administrator pursuant to this section.
  (b) Process and Timeline.--
          (1) In general.--The Administrator shall maintain an 
        efficient process for the review and approval of an 
        individual to become a member of an ODA unit under this 
        section.
          (2) Process.--An ODA holder described in subsection 
        (a) may submit to the Administrator an application for 
        an individual to be approved to become a member of an 
        ODA unit under this section. The application shall be 
        submitted in such form and manner as the Administrator 
        determines appropriate. The Administrator shall require 
        an ODA holder to submit with such an application 
        information sufficient to demonstrate an individual's 
        qualifications under subsection (c).
          (3) Timeline.--The Administrator shall approve or 
        reject an individual that is selected by an ODA holder 
        to become an ODA unit member under this section not 
        later than 30 days after the receipt of an application 
        by an ODA holder.
          (4) Documentation of approval.--Upon approval of an 
        individual to become a member of an ODA unit under this 
        section, the Administrator shall provide such 
        individual a letter confirming that such individual has 
        been approved by the Administrator under this section 
        to be an ODA unit member.
          (5) Reapplication.--An ODA holder may submit an 
        application under this subsection for an individual to 
        become a member of an ODA unit under this section 
        regardless of whether an application for such 
        individual was previously rejected by the 
        Administrator.
  (c) Qualifications.--
          (1) In general.--The Administrator shall issue 
        minimum qualifications for an individual to become a 
        member of an ODA unit under this section. In issuing 
        such qualifications, the Administrator shall consider 
        existing qualifications for Administration employees 
        with similar duties and whether such individual--
                  (A) is technically proficient and qualified 
                to perform the authorized functions sought;
                  (B) has no recent record of serious 
                enforcement action, as determined by the 
                Administrator, taken by the Administrator with 
                respect to any certificate, approval, or 
                authorization held by such individual;
                  (C) is of good moral character (as such 
                qualification is applied to an applicant for an 
                airline transport pilot certificate issued 
                under section 44703);
                  (D) possesses the knowledge of applicable 
                design or production requirements in this 
                chapter and in title 14, Code of Federal 
                Regulations, necessary for performance of the 
                authorized functions sought;
                  (E) possesses a high degree of knowledge of 
                applicable design or production principles, 
                system safety principles, or safety risk 
                management processes appropriate for the 
                authorized functions sought; and
                  (F) meets such testing, examination, 
                training, or other qualification standards as 
                the Administrator determines are necessary to 
                ensure the individual is competent and capable 
                of performing the authorized functions sought.
          (2) Previously rejected application.--In reviewing an 
        application for an individual to become a member of an 
        ODA unit under this section, if an application for such 
        individual was previously rejected, the Administrator 
        shall ensure that the reasons for the prior rejection 
        have been resolved or mitigated to the Administrator's 
        satisfaction before making a determination on the 
        individual's reapplication.
  (d) Rescission of Approval.--The Administrator may rescind an 
approval of an individual as a member of an ODA unit granted 
pursuant to this section at any time and for any reason the 
Administrator considers appropriate. The Administrator shall 
develop procedures to provide for notice and opportunity to 
appeal rescission decisions made by the Administrator. Such 
decisions by the Administrator are not subject to judicial 
review.
  (e) Records and Briefings.--
          (1) In general.--Beginning on the date described in 
        subsection (a), an ODA holder shall maintain, for a 
        period to be determined by the Administrator and with 
        proper protections to ensure the security of sensitive 
        and personal information--
                  (A) any data, applications, records, or 
                manuals required by the ODA holder's approved 
                procedures manual, as determined by the 
                Administrator;
                  (B) the names, responsibilities, 
                qualifications, and example signature of each 
                member of the ODA unit who performs an 
                authorized function pursuant to a delegation by 
                the Administrator under section 44702(d);
                  (C) training records for ODA unit members and 
                ODA administrators; and
                  (D) any other data, applications, records, or 
                manuals determined appropriate by the 
                Administrator.
          (2) Congressional briefing.--Not later than 90 days 
        after the date of enactment of the Aircraft 
        Certification Reform and Accountability Act, and every 
        90 days thereafter through September 30, 2023, the 
        Administrator shall provide to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives and Committee on Commerce, Science, and 
        Transportation of the Senate a briefing on the 
        implementation and effects of this section, including--
                  (A) the Administration's performance in 
                completing reviews of individuals and approving 
                or denying such individuals within the timeline 
                required under subsection (b)(3);
                  (B) for any individual rejected by the 
                Administrator under subsection (b) during the 
                preceding 90-day period, the reasoning or basis 
                for such rejection; and
                  (C) any resource, staffing, or other 
                challenges within the Administration associated 
                with implementation of this section.
  (f) Special Review of Qualifications.--
          (1) In general.--Not later than 30 days after the 
        issuance of minimum qualifications under subsection 
        (c), the Administrator shall initiate a review of the 
        qualifications of each individual who on the date on 
        which such minimum qualifications are issued is a 
        member of an ODA unit of a holder of a type certificate 
        for a transport airplane to ensure such individual 
        meets the minimum qualifications issued by the 
        Administrator under subsection (c).
          (2) Unqualified individual.--For any individual who 
        is determined by the Administrator not to meet such 
        minimum qualifications pursuant to the review conducted 
        under paragraph (1), the Administrator--
                  (A) shall determine whether the lack of 
                qualification may be remedied and, if so, 
                provide such individual with an action plan or 
                schedule for such individual to meet such 
                qualifications; or
                  (B) may, if the Administrator determines the 
                lack of qualification may not be remedied, take 
                appropriate action, including prohibiting such 
                individual from performing an authorized 
                function.
          (3) Deadline.--
                  (A) The Administrator shall complete the 
                review required under paragraph (1) not later 
                than 18 months after the date on which such 
                review was initiated.
                  (B) If the Administrator fails to complete 
                the review in compliance with subparagraph (A), 
                the Secretary of Transportation shall assume 
                the responsibility for completing the review.
                  (C) The Secretary's completion of the review 
                under subparagraph (B)--
                          (i) may not be delegated to the 
                        Administration; and
                          (ii) shall be completed within 120 
                        days of the date the Secretary's 
                        assumption of responsibility following 
                        the Administrator's failure to complete 
                        the review in compliance with 
                        subparagraph (A).
          (4) Savings clause.--An individual approved to become 
        a member of an ODA unit of a holder of a type 
        certificate for a transport airplane under subsection 
        (a) shall not be subject to the review under this 
        subsection.
  (g) Prohibition.--The Administrator may not authorize an 
organization or ODA holder to approve an individual selected by 
an ODA holder to become an ODA unit member under this section.
  (h) Definitions.--
          (1) General applicability.--The definitions contained 
        in section 44736 shall apply to this section.
          (2) Transport airplane.--The term ``transport 
        airplane'' means a transport-category airplane designed 
        for operation by an air carrier or foreign air carrier 
        type-certificated with a passenger seating capacity of 
        30 or more or an all-cargo or combi derivative of such 
        an airplane.
  (i) Authorization of Appropriations.--There is authorized to 
be appropriated to carry out this section $3,000,000 for each 
of fiscal years 2021 through 2023.

Sec. 44742. Interference with the duties of organization designation 
                    authorization unit members

  (a) In General.--The Administrator of the Federal Aviation 
Administration shall continuously seek to eliminate or minimize 
interference by an ODA holder that affects the performance of 
authorized functions by members of an ODA unit.
  (b) Prohibition.--
          (1) In general.--It shall be unlawful for any 
        individual who is employed by an ODA holder to commit 
        an act of interference with an ODA unit member's 
        performance of authorized functions.
          (2) Civil penalty.--
                  (A) Individuals.--An individual shall be 
                subject to a civil penalty under section 
                46301(a)(1) for each violation under paragraph 
                (1).
                  (B) Savings clause.--Nothing in this 
                paragraph shall be construed as limiting or 
                constricting any other authority of the 
                Administrator to pursue an enforcement action 
                against an individual or organization for 
                violation of applicable Federal laws or 
                regulations of the Administration.
  (c) Reporting.--
          (1) Reports to oda holder.--A member of an ODA unit 
        shall promptly report any instances of interference 
        experienced or witnessed by such member to the office 
        of the ODA holder that is designated to receive such 
        reports.
          (2) Reports to the faa.--
                  (A) In general.--The ODA holder office 
                described in paragraph (1) shall submit to the 
                office of the Administration designated by the 
                Administrator to accept and review such reports 
                any credible instances of interference reported 
                under paragraph (1).
                  (B) Contents.--A report to the Administration 
                under this paragraph shall be submitted in a 
                manner, at a time, and in a form prescribed by 
                the Administrator. Such report shall include 
                the results of any investigation conducted by 
                the ODA holder in response to a report of 
                interference, a description of any action taken 
                by the ODA holder as a result of the report of 
                interference, and any other information or 
                potentially mitigating factors the ODA holder 
                or the Administrator deems appropriate.
                  (C) Use of report.--The Administrator may use 
                the information submitted in a report under 
                this paragraph, including the actions taken by 
                an ODA holder in response to a report under 
                paragraph (1), in determining whether to issue 
                a civil penalty pursuant to subsection (b) or 
                whether such civil penalty should be subject to 
                a setoff or compromised.
          (3) Rule of construction.--Nothing in this subsection 
        shall be construed to preclude a member of an ODA unit 
        from reporting an instance of interference reported 
        under paragraph (1) directly to the Administration. 
        Each ODA holder shall provide notice to each member of 
        such holder's ODA unit stating that such individual may 
        report an instance of interference reported under 
        paragraph (1) directly to the Administration.
  (d) Definitions.--
          (1) General applicability.--The definitions contained 
        in section 44736 shall apply to this section.
          (2) Interference.--In this section, the term 
        ``interference'' means--
                  (A) blatant or egregious statements or 
                behavior, such as harassment, beratement, or 
                threats, that a reasonable person would 
                conclude was intended to improperly influence 
                or prejudice an ODA unit member's performance 
                of his or her duties; or
                  (B) the presence of non-ODA unit duties or 
                activities that conflict with the performance 
                of authorized functions by ODA unit members.

Sec. 44743. Pilot training requirements

  (a) In General.--
          (1) Administrator's determination.--In establishing 
        any pilot training requirements with respect to a new 
        transport airplane, the Administrator of the Federal 
        Aviation Administration shall independently review any 
        proposal by the manufacturer of such airplane with 
        respect to the scope, format, or minimum level of 
        training required for operation of such airplane.
          (2) Assurances and marketing representations.--Before 
        the Administrator has established applicable training 
        requirements, an applicant for a new or amended type 
        certificate for an airplane described in paragraph (1) 
        may not, with respect to the scope, format, or 
        magnitude of pilot training for such airplane--
                  (A) make any assurance, whether verbal or in 
                writing, to a potential purchaser of such 
                airplane unless a clear and conspicuous 
                disclaimer (as defined by the Administrator) is 
                included regarding the status of training 
                required for operation of such airplane; or
                  (B) provide financial incentives (including 
                rebates) to a potential purchaser of such 
                airplane regarding the scope, format, or 
                magnitude of pilot training for such airplane.
  (b) Pilot Response Time.--Beginning on the day after the date 
on which regulations are issued under section 20(b)(5) of the 
Aircraft Certification Reform and Accountability Act, the 
Administrator may not issue a new or amended type certificate 
for an airplane described in subsection (a) unless the 
applicant for such certificate has demonstrated to the 
Administrator that the applicant has accounted for realistic 
assumptions regarding the time for pilot responses to non-
normal conditions in designing the systems and instrumentation 
of such airplane. Such assumptions shall--
          (1) be based on test data, analysis, or other 
        technical validation methods; and
          (2) account for generally accepted scientific 
        consensus among experts in human factors regarding 
        realistic pilot response time.
  (c) Definition.--In this section, the term ``transport 
airplane'' means a transport-category airplane designed for 
operation by an air carrier or foreign air carrier type-
certificated with a passenger seating capacity of 30 or more or 
an all-cargo or combi derivative of such an airplane.

           *       *       *       *       *       *       *


SUBPART IV--ENFORCEMENT AND PENALTIES

           *       *       *       *       *       *       *


CHAPTER 463--PENALTIES

           *       *       *       *       *       *       *


Sec. 46301. Civil penalties

  (a) General Penalty.--(1) A person is liable to the United 
States Government for a civil penalty of not more than $25,000 
(or $1,100 if the person is an individual or small business 
concern) for violating--
          (A) chapter 401 (except sections 40103(a) and (d), 
        40105, 40116, and 40117), chapter 411, chapter 413 
        (except sections 41307 and 41310(b)-(f)), chapter 415 
        (except sections 41502, 41505, and 41507-41509), 
        chapter 417 (except sections 41703, 41704, 41710, 
        41713, and 41714), chapter 419, subchapter II or III of 
        chapter 421, chapter 423, chapter 441 (except section 
        44109), section 44502(b) or (c), chapter 447 [(except 
        sections 44717 and 44719-44723)] (except sections 
        44704(a)(6), 44704(e)(4), 44717, and 44719-44723), 
        chapter 448, chapter 449 (except sections 44902, 
        44903(d), 44904, 44907(a)-(d)(1)(A) and (d)(1)(C)-(f), 
        and 44908), chapter 451, section 47107(b) (including 
        any assurance made under such section), or section 
        47133 of this title;
          (B) a regulation prescribed or order issued under any 
        provision to which clause (A) of this paragraph 
        applies;
          (C) any term of a certificate or permit issued under 
        section 41102, 41103, or 41302 of this title; or
          (D) a regulation of the United States Postal Service 
        under this part.
  (2) A separate violation occurs under this subsection for 
each day the violation (other than a violation of section 
41719) continues or, if applicable, for each flight involving 
the violation (other than a violation of section 41719).
  (3) Penalty for diversion of aviation revenues.--The amount 
of a civil penalty assessed under this section for a violation 
of section 47107(b) of this title (or any assurance made under 
such section) or section 47133 of this title may be increased 
above the otherwise applicable maximum amount under this 
section to an amount not to exceed 3 times the amount of 
revenues that are used in violation of such section.
  (4) Aviation security violations.--Notwithstanding paragraph 
(1) of this subsection, the maximum civil penalty for violating 
chapter 449 shall be $10,000; except that the maximum civil 
penalty shall be $25,000 in the case of a person operating an 
aircraft for the transportation of passengers or property for 
compensation (except an individual serving as an airman).
  (5) Penalties applicable to individuals and small business 
concerns.--
          (A) An individual (except an airman serving as an 
        airman) or small business concern is liable to the 
        Government for a civil penalty of not more than $10,000 
        for violating--
                  (i) chapter 401 (except sections 40103(a) and 
                (d), 40105, 40106(b), 40116, and 40117), 
                section 44502 (b) or (c), chapter 447 [(except 
                sections 44717-44723)] (except sections 
                44704(a)(6), 44704(e)(4), and 44717-44723), 
                chapter 448, chapter 449 (except sections 
                44902, 44903(d), 44904, and 44907-44909), 
                chapter 451, or section 46314(a) of this title; 
                or
                  (ii) a regulation prescribed or order issued 
                under any provision to which clause (i) 
                applies.
          (B) A civil penalty of not more than $10,000 may be 
        imposed for each violation under paragraph (1) 
        committed by an individual or small business concern 
        related to--
                  (i) the transportation of hazardous material;
                  (ii) the registration or recordation under 
                chapter 441 of an aircraft not used to provide 
                air transportation;
                  (iii) a violation of section 44718(d), 
                relating to the limitation on construction or 
                establishment of landfills;
                  (iv) a violation of section 44725, relating 
                to the safe disposal of life-limited aircraft 
                parts; or
                  (v) a violation of section 40127 or section 
                41705, relating to discrimination.
          (C) Notwithstanding paragraph (1), the maximum civil 
        penalty for a violation of section 41719 committed by 
        an individual or small business concern shall be $5,000 
        instead of $1,000.
          (D) Notwithstanding paragraph (1), the maximum civil 
        penalty for a violation of section 41712 (including a 
        regulation prescribed or order issued under such 
        section) or any other regulation prescribed by the 
        Secretary of Transportation by an individual or small 
        business concern that is intended to afford consumer 
        protection to commercial air transportation passengers 
        shall be $2,500 for each violation.
  (6) Failure To Collect Airport Security Badges.--
Notwithstanding paragraph (1), any employer (other than a 
governmental entity or airport operator) who employs an 
employee to whom an airport security badge or other identifier 
used to obtain access to a secure area of an airport is issued 
before, on, or after the date of enactment of this paragraph 
and who does not collect or make reasonable efforts to collect 
such badge from the employee on the date that the employment of 
the employee is terminated and does not notify the operator of 
the airport of such termination within 24 hours of the date of 
such termination shall be liable to the Government for a civil 
penalty not to exceed $10,000.
  (7) Penalties Relating to Harm to Passengers With 
Disabilities.--
          (A) Penalty for bodily harm or damage to wheelchair 
        or other mobility aid.--The amount of a civil penalty 
        assessed under this section for a violation of section 
        41705 that involves damage to a passenger's wheelchair 
        or other mobility aid or injury to a passenger with a 
        disability may be increased above the otherwise 
        applicable maximum amount under this section for a 
        violation of section 41705 to an amount not to exceed 3 
        times the maximum penalty otherwise allowed.
          (B) Each act constitutes separate offense.--
        Notwithstanding paragraph (2), a separate violation of 
        section 41705 occurs for each act of discrimination 
        prohibited by that section.
  (b) Smoke Alarm Device Penalty.--(1) A passenger may not 
tamper with, disable, or destroy a smoke alarm device located 
in a lavatory on an aircraft providing air transportation or 
intrastate air transportation.
  (2) An individual violating this subsection is liable to the 
Government for a civil penalty of not more than $2,000.
  (c) Procedural Requirements.--(1) The Secretary of 
Transportation may impose a civil penalty for the following 
violations only after notice and an opportunity for a hearing:
          (A) a violation of subsection (b) of this section or 
        chapter 411, chapter 413 (except sections 41307 and 
        41310(b)-(f)), chapter 415 (except sections 41502, 
        41505, and 41507-41509), chapter 417 (except sections 
        41703, 41704, 41710, 41713, and 41714), chapter 419, 
        subchapter II of chapter 421, chapter 423, or section 
        44909 of this title.
          (B) a violation of a regulation prescribed or order 
        issued under any provision to which clause (A) of this 
        paragraph applies.
          (C) a violation of any term of a certificate or 
        permit issued under section 41102, 41103, or 41302 of 
        this title.
          (D) a violation under subsection (a)(1) of this 
        section related to the transportation of hazardous 
        material.
  (2) The Secretary shall give written notice of the finding of 
a violation and the civil penalty under paragraph (1) of this 
subsection.
  (d) Administrative Imposition of Penalties.--(1) In this 
subsection--
          (A) ``flight engineer'' means an individual who holds 
        a flight engineer certificate issued under part 63 of 
        title 14, Code of Federal Regulations.
          (B) ``mechanic'' means an individual who holds a 
        mechanic certificate issued under part 65 of title 14, 
        Code of Federal Regulations.
          (C) ``pilot'' means an individual who holds a pilot 
        certificate issued under part 61 of title 14, Code of 
        Federal Regulations.
          (D) ``repairman'' means an individual who holds a 
        repairman certificate issued under part 65 of title 14, 
        Code of Federal Regulations.
  (2) The Administrator of the Federal Aviation Administration 
may impose a civil penalty for a violation of chapter 401 
(except sections 40103(a) and (d), 40105, 40106(b), 40116, and 
40117), chapter 441 (except section 44109), section 44502(b) or 
(c), chapter 447 [(except sections 44717 and 44719-44723)] 
(except sections 44704(a)(6), 44704(e)(4), 44717, and 44719-
44723), chapter 448, chapter 451, section 46301(b), section 
46302 (for a violation relating to section 46504), section 
46318, section 46319, section 46320, or section 47107(b) (as 
further defined by the Secretary of Transportation under 
section 47107(k) and including any assurance made under section 
47107(b)) of this title or a regulation prescribed or order 
issued under any of those provisions. The Secretary of Homeland 
Security may impose a civil penalty for a violation of chapter 
449 (except sections 44902, 44903(d), 44907(a)-(d)(1)(A), 
44907(d)(1)(C)-(f), 44908, and 44909), section 46302 (except 
for a violation relating to section 46504), or section 46303 of 
this title or a regulation prescribed or order issued under any 
of those provisions. The Secretary of Homeland Security or 
Administrator of the Federal Aviation Administration shall give 
written notice of the finding of a violation and the penalty.
  (3) In a civil action to collect a civil penalty imposed by 
the Secretary of Homeland Security or Administrator of the 
Federal Aviation Administration under this subsection, the 
issues of liability and the amount of the penalty may not be 
reexamined.
  (4) Notwithstanding paragraph (2) of this subsection, the 
district courts of the United States have exclusive 
jurisdiction of a civil action involving a penalty the 
Secretary of Homeland Security or Administrator of the Federal 
Aviation Administration initiates if--
          (A) the amount in controversy is more than--
                  (i) $50,000 if the violation was committed by 
                any person before the date of enactment of the 
                Vision 100--Century of Aviation Reauthorization 
                Act;
                  (ii) $400,000 if the violation was committed 
                by a person other than an individual or small 
                business concern on or after that date; or
                  (iii) $50,000 if the violation was committed 
                by an individual or small business concern on 
                or after that date;
          (B) the action is in rem or another action in rem 
        based on the same violation has been brought;
          (C) the action involves an aircraft subject to a lien 
        that has been seized by the Government; or
          (D) another action has been brought for an injunction 
        based on the same violation.
  (5)(A) The Administrator of the Federal Aviation 
Administration may issue an order imposing a penalty under this 
subsection against an individual acting as a pilot, flight 
engineer, mechanic, or repairman only after advising the 
individual of the charges or any reason the Administrator of 
the Federal Aviation Administration relied on for the proposed 
penalty and providing the individual an opportunity to answer 
the charges and be heard about why the order shall not be 
issued.
  (B) An individual acting as a pilot, flight engineer, 
mechanic, or repairman may appeal an order imposing a penalty 
under this subsection to the National Transportation Safety 
Board. After notice and an opportunity for a hearing on the 
record, the Board shall affirm, modify, or reverse the order. 
The Board may modify a civil penalty imposed to a suspension or 
revocation of a certificate.
  (C) When conducting a hearing under this paragraph, the Board 
is not bound by findings of fact of the Administrator of the 
Federal Aviation Administration but is bound by all validly 
adopted interpretations of laws and regulations the 
Administrator of the Federal Aviation Administration carries 
out and of written agency policy guidance available to the 
public related to sanctions to be imposed under this section 
unless the Board finds an interpretation is arbitrary, 
capricious, or otherwise not according to law.
  (D) When an individual files an appeal with the Board under 
this paragraph, the order of the Administrator of the Federal 
Aviation Administration is stayed.
  (6) An individual substantially affected by an order of the 
Board under paragraph (5) of this subsection, or the 
Administrator of the Federal Aviation Administration when the 
Administrator of the Federal Aviation Administration decides 
that an order of the Board under paragraph (5) will have a 
significant adverse impact on carrying out this part, may 
obtain judicial review of the order under section 46110 of this 
title. The Administrator of the Federal Aviation Administration 
shall be made a party to the judicial review proceedings. 
Findings of fact of the Board are conclusive if supported by 
substantial evidence.
  (7)(A) The Administrator of the Federal Aviation 
Administration may impose a penalty on a person (except an 
individual acting as a pilot, flight engineer, mechanic, or 
repairman) only after notice and an opportunity for a hearing 
on the record.
  (B) In an appeal from a decision of an administrative law 
judge as the result of a hearing under subparagraph (A) of this 
paragraph, the Administrator of the Federal Aviation 
Administration shall consider only whether--
          (i) each finding of fact is supported by a 
        preponderance of reliable, probative, and substantial 
        evidence;
          (ii) each conclusion of law is made according to 
        applicable law, precedent, and public policy; and
          (iii) the judge committed a prejudicial error that 
        supports the appeal.
  (C) Except for good cause, a civil action involving a penalty 
under this paragraph may not be initiated later than 2 years 
after the violation occurs.
  (D) In the case of a violation of section 47107(b) of this 
title or any assurance made under such section--
          (i) a civil penalty shall not be assessed against an 
        individual;
          (ii) a civil penalty may be compromised as provided 
        under subsection (f); and
          (iii) judicial review of any order assessing a civil 
        penalty may be obtained only pursuant to section 46110 
        of this title.
  (8) The maximum civil penalty the Administrator of the 
Transportation Security Administration, Administrator of the 
Federal Aviation Administration, or Board may impose under this 
subsection is--
          (A) $50,000 if the violation was committed by any 
        person before the date of enactment of the Vision 100--
        Century of Aviation Reauthorization Act;
          (B) $400,000 if the violation was committed by a 
        person other than an individual or small business 
        concern on or after that date; or
          (C) $50,000 if the violation was committed by an 
        individual or small business concern on or after that 
        date.
  (9) This subsection applies only to a violation occurring 
after August 25, 1992.
  (e) Penalty Considerations.--In determining the amount of a 
civil penalty under subsection (a)(3) of this section related 
to transportation of hazardous material, the Secretary of 
Transportation shall consider--
          (1) the nature, circumstances, extent, and gravity of 
        the violation;
          (2) with respect to the violator, the degree of 
        culpability, any history of prior violations, the 
        ability to pay, and any effect on the ability to 
        continue doing business; and
          (3) other matters that justice requires.
  (f) Compromise and Setoff.--(1)(A) The Secretary may 
compromise the amount of a civil penalty imposed for 
violating--
          (i) chapter 401 (except sections 40103(a) and (d), 
        40105, 40116, and 40117), chapter 441 (except section 
        44109), section 44502(b) or (c), chapter 447 [(except 
        sections 44717 and 44719-44723)] (except sections 
        44704(a)(6), 44704(e)(4), 44717, and 44719-44723), 
        chapter 448, chapter 449 (except sections 44902, 
        44903(d), 44904, 44907(a)-(d)(1)(A) and (d)(1)(C)-(f), 
        44908, and 44909), or chapter 451 of this title; or
          (ii) a regulation prescribed or order issued under 
        any provision to which clause (i) of this subparagraph 
        applies.
  (B) The Postal Service may compromise the amount of a civil 
penalty imposed under subsection (a)(1)(D) of this section.
  (2) The Government may deduct the amount of a civil penalty 
imposed or compromised under this subsection from amounts it 
owes the person liable for the penalty.
  (g) Judicial Review.--An order of the Secretary or the 
Administrator of the Federal Aviation Administration imposing a 
civil penalty may be reviewed judicially only under section 
46110 of this title.
  (h) Nonapplication.--(1) This section does not apply to the 
following when performing official duties:
          (A) a member of the armed forces of the United 
        States.
          (B) a civilian employee of the Department of Defense 
        subject to the Uniform Code of Military Justice.
  (2) The appropriate military authority is responsible for 
taking necessary disciplinary action and submitting to the 
Secretary (or the Administrator of the Transportation Security 
Administration with respect to security duties and powers 
designated to be carried out by the Administrator of the 
Transportation Security Administration or the Administrator of 
the Federal Aviation Administration with respect to aviation 
safety duties and powers designated to be carried out by the 
Administrator of the Federal Aviation Administration) a timely 
report on action taken.
  (i) Small Business Concern Defined.--In this section, the 
term ``small business concern'' has the meaning given that term 
in section 3 of the Small Business Act (15 U.S.C. 632).

           *       *       *       *       *       *       *


                                  [all]