GAP Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9707 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                                H. R. 9707

To protect the national security of the United States by strengthening
review of foreign adversary investments in the general aviation sector,
                        and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 15, 2026

 Mr. Harrigan (for himself and Mr. Mackenzie) introduced the following
bill; which was referred to the Committee on Financial Services, and in
  addition to the Committees on Foreign Affairs, Energy and Commerce,
Transportation and Infrastructure, Oversight and Government Reform, and
   Small Business, for a period to be subsequently determined by the
  Speaker, in each case for consideration of such provisions as fall
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

To protect the national security of the United States by strengthening
review of foreign adversary investments in the general aviation sector,
                        and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``General Aviation
Protection Act'' or the ``GAP Act''.
    (b) Table of Contents.--The table of contents of this Act is as
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Mandatory CFIUS filing for covered aviation transactions.
Sec. 3. Extended CFIUS real-estate jurisdiction for general aviation
                            facilities.
Sec. 4. Rebuttable presumption of prohibition for foreign adversary
                            acquisitions of general aviation companies.
Sec. 5. Review and classification of general aviation dual-use
                            technologies.
Sec. 6. Outbound investment notification for general aviation
                            technologies.
Sec. 7. Review of existing foreign adversary ownership of general
                            aviation companies.
Sec. 8. Supply chain integrity audits for foreign adversary-controlled
                            aviation certificate holders.
Sec. 9. Restrictions on Federal financial assistance; foreign ownership
                            disclosure requirement.
Sec. 10. Definitions.
Sec. 11. Severability.
Sec. 12. Effective date.

SEC. 2. MANDATORY CFIUS FILING FOR COVERED AVIATION TRANSACTIONS.

    (a) Findings.--Congress finds the following:
            (1) The general aviation sector of the United States
        represents a critical component of the national aerospace and
        defense industrial base. General aviation aircraft, engines,
        avionics systems, and related technologies support pilot
        training pipelines for both civilian and military aviators,
        serve as platforms for surveillance, logistics, and emergency
        response operations, and form an integral part of the supply
        chains supporting the United States Armed Forces and Federal
        agencies.
            (2) The People's Republic of China (PRC) has, over the past
        two decades, systematically acquired United States general
        aviation manufacturers, engine producers, avionics firms, and
        flight training infrastructure, including through entities
        wholly owned or directed by the Aviation Industry Corporation
        of China (AVIC), a conglomerate designated as a Chinese
        military company under section 1237 of the National Defense
        Authorization Act for Fiscal Year 1999 (50 U.S.C. 1701 note)
        and listed on the Non-SDN Chinese Military-Industrial Complex
        Companies List (NS-CMIC List) maintained by the Office of
        Foreign Assets Control.
            (3) PRC entities have made more than 20 acquisitions of,
        investments in, or joint venture agreements with United States
        general aviation companies since 2005, spanning engine
        manufacturers, airframe producers, avionics developers,
        helicopter manufacturers, and flight training operators. The
        pattern and pace of these transactions, their concentration in
        strategically sensitive subsectors, and their alignment with
        stated PRC industrial policy objectives constitute a
        coordinated campaign rather than ordinary commercial investment
        activity.
            (4) These acquisitions have resulted in the transfer to
        PRC-controlled entities of Federal Aviation Administration
        (FAA) production certificates, advanced composite airframe
        manufacturing expertise, high-efficiency piston engine
        technology, and FAA-certified avionics integration knowledge,
        capabilities that carry direct application to unmanned aerial
        systems, military trainers, and dual-use aviation platforms.
            (5) Congress has previously recognized analogous national
        security risks in other sectors and taken corrective action,
        including through the Protecting Americans from Foreign
        Adversary Controlled Applications Act (Public Law 118-50),
        restrictions on Huawei and ZTE Corporation equipment in United
        States telecommunications networks under the Secure and Trusted
        Communications Networks Act of 2019 (47 U.S.C. 1601 et seq.),
        and prohibitions on AVIC-affiliated entities in United States
        defense procurement. The general aviation sector warrants
        equivalent congressional attention and protection.
    (b) Amendments to the Defense Production Act of 1950.--Section 721
of the Defense Production Act of 1950 (50 U.S.C. 4565) is amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (8) through (13) as
                paragraphs (10) through (15), respectively; and
                    (B) by inserting after paragraph (7) the following
                new paragraphs:
            ``(8) Covered aviation transaction.--The term `covered
        aviation transaction' means any covered transaction in which--
                    ``(A) the acquirer is a foreign person from a
                country of concern; and
                    ``(B) the United States business is a covered
                general aviation entity.
            ``(9) Covered general aviation entity.--The term `covered
        general aviation entity' means any United States business
        that--
                    ``(A) holds an FAA production certificate issued
                pursuant to part 21 of title 14, Code of Federal
                Regulations, for the manufacture of aircraft engines,
                propellers, or airframes intended for use in the United
                States civil aviation fleet;
                    ``(B) designs, manufactures, or sells avionics or
                flight control systems, including autopilot systems,
                glass cockpit displays, or air-to-ground data link
                systems, intended primarily for general aviation
                aircraft, as that term is defined in section
                40102(a)(17) of title 49, United States Code;
                    ``(C) is a type certificate holder or production
                certificate holder under part 21 of title 14, Code of
                Federal Regulations, for helicopters or light
                rotorcraft with a maximum certificated takeoff weight
                of 12,500 pounds or less; or
                    ``(D) holds a certificate of approval as an FAA-
                certificated pilot school under part 141 of title 14,
                Code of Federal Regulations, or an aviation training
                center under part 142 of title 14, Code of Federal
                Regulations, and is located within 50 nautical miles of
                a military installation (as such term is defined in
                section 802.227 of title 31, Code of Federal
                Regulations).'';
            (2) in subsection (b)(1)(C)(v)(IV), by adding at the end
        the following:
                                            ``(hh) Covered aviation
                                        transaction.--The Committee
                                        shall require a declaration
                                        under this subclause for a
                                        covered aviation
                                        transaction.''; and
            (3) in subsection (f)--
                    (A) in paragraph (10), by striking ``and'' at the
                end;
                    (B) by redesignating paragraph (11) as paragraph
                (13); and
                    (C) by inserting after paragraph (10) the
                following:
            ``(11) with respect to a covered aviation transaction--
                    ``(A) the applicability of the acquirer's home
                country's military-civil fusion policies, or analogous
                policies, to the acquired United States business;
                    ``(B) the dual-use potential of the products,
                technologies, or manufacturing processes of the
                acquired business for unmanned aerial systems or
                military aviation platforms; and
                    ``(C) the acquired business's participation in FAA
                certification programs, supply chains supporting
                Federal agencies, or flight training programs that
                train foreign nationals;
            ``(12) if a business has an ultimate foreign parent entity
        on the NS-CMIC List, the Entity List maintained under part 744
        of title 15, Code of Federal Regulations, or the Specially
        Designated Nationals and Blocked Persons List; and''.
    (c) Implementing Regulations.--Not later than 180 days after the
date of enactment of this Act, the Secretary of the Treasury, in
coordination with the Secretary of Defense, the Secretary of
Transportation, and the Secretary of Commerce, shall promulgate
regulations implementing the amendments made by subsection (b).

SEC. 3. EXTENDED CFIUS REAL-ESTATE JURISDICTION FOR GENERAL AVIATION
              FACILITIES.

    (a) In General.--Section 721(a)(4)(B)(ii) of the Defense Production
Act of 1950 (50 U.S.C. 4565(a)(4)(B)(ii)) is further amended--
            (1) in subclause (II)(bb)(CC), by striking ``and'' at the
        end;
            (2) in subclause (III), by striking the period at the end
        and inserting ``; and''; and
            (3) by adding at the end the following:
                                    ``(IV) is general aviation airport
                                certificated under part 139 of title
                                14, Code of Federal Regulations, or any
                                real property--
                                            ``(aa) used or intended to
                                        be used as a fixed-base
                                        operator facility, hangar,
                                        flight school campus, or
                                        general aviation maintenance
                                        facility; and
                                            ``(bb) located within 50
                                        nautical miles of a military
                                        installation (as such term is
                                        defined in section 802.227 of
                                        title 31, Code of Federal
                                        Regulations) or within 10
                                        nautical miles of Class B or
                                        Class C airspace surrounding a
                                        major civil-military joint-use
                                        airport.''.
    (b) Rebuttable Presumption.--When evaluating any real estate
transaction described in subsection (a) in which the acquirer is a
foreign person from a country of concern, the Committee shall presume
that such transaction poses a risk to national security but such
presumption may be rebutted with a showing of clear and convincing
evidence that the transaction will not provide the foreign person
with--
            (1) a capability to conduct surveillance, signals
        collection, or intelligence gathering at or near a military
        installation or restricted airspace;
            (2) persistent physical access to aviation infrastructure
        supporting United States civil or military operations; or
            (3) a base of operations for flight training activities
        that would benefit the military aviation programs of a country
        of concern.

SEC. 4. REBUTTABLE PRESUMPTION OF PROHIBITION FOR FOREIGN ADVERSARY
              ACQUISITIONS OF GENERAL AVIATION COMPANIES.

    Section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565)
is further amended by adding at the end the following:
    ``(r) Rebuttable Presumption of Prohibition for Covered Aviation
Transactions.--
            ``(1) Presumption.--Notwithstanding any other provision of
        this section, a covered aviation transaction shall be
        prohibited with respect to any covered aviation transaction in
        which the acquirer--
                    ``(A) is an entity owned by, controlled by, or
                subject to the jurisdiction or direction of a country
                of concern, including any entity in which a government
                of a country of concern holds, directly or indirectly,
                a 5-percent or greater equity interest;
                    ``(B) is an entity on the Non-SDN Chinese Military-
                Industrial Complex Companies List (NS-CMIC List)
                maintained by the Office of Foreign Assets Control, or
                any subsidiary, parent, affiliate, or successor entity
                thereof;
                    ``(C) is an entity, based on credible evidence as
                determined by the Committee, that is acting as a
                conduit, nominee, or front company for any entity
                described in subparagraph (A) or (B); or
                    ``(D) derives 10 percent or more of its operating
                income, as determined under the General Accepted
                Accounting Principles published by the Financial
                Accounting Standards Board, from an entity based in a
                country of concern.
            ``(2) Rebuttal.--The presumption established under
        paragraph (1) may be rebutted only by the acquirer, by clear
        and convincing evidence submitted to the Committee
        demonstrating that--
                    ``(A) the transaction does not create any risk of
                transfer of technology, manufacturing know-how, FAA
                certification data, or engineering talent to a country
                of concern;
                    ``(B) enforceable, verifiable mitigation measures
                exist that would prevent any such transfer;
                    ``(C) the transaction does not undermine the
                availability or integrity of the United States civil
                aviation supply chain; and
                    ``(D) approval of the transaction is in the
                national security interest of the United States.
            ``(3) No mitigation for certain entities.--With respect to
        any acquirer that is an entity listed on the NS-CMIC List or
        any entity in which the government of a country of concern
        holds, directly or indirectly, 25 percent or greater equity or
        voting interest, no mitigation agreement under subsection (l)
        shall be considered sufficient to rebut the presumption
        established under paragraph (1). The President may only approve
        such a transaction upon a written determination to Congress,
        included in the reporting required under subsection (m), that
        approval is in the paramount national security interest of the
        United States.''.

SEC. 5. REVIEW AND CLASSIFICATION OF GENERAL AVIATION DUAL-USE
              TECHNOLOGIES.

    (a) Findings.--Congress finds that certain general aviation
technologies have significant dual-use potential, including for
unmanned aerial systems, military trainers, and tactical aviation
platforms, but are not currently classified as controlled items on the
Commerce Control List (CCL) maintained pursuant to part 774 of title
15, Code of Federal Regulations, or are controlled at inadequate levels
relative to their strategic significance.
    (b) Required Review.--Not later than 180 days after the date of
enactment of this Act, the Secretary of Commerce, in coordination with
the Secretary of Defense and the Secretary of State, shall conduct a
comprehensive review of the CCL and related Export Administration
Regulations under the Export Control Reform Act of 2018 (50 U.S.C. 4811
et seq.) to determine whether the following technologies should be
newly classified or reclassified as controlled items requiring a
license for export, reexport, or in-country transfer to countries of
concern:
            (1) High-efficiency piston and small turboprop engines.--
                    (A) Diesel-cycle and Jet-A-fuel capable
                horizontally opposed piston aircraft engines producing
                100 shaft horsepower or greater, including associated
                type certificate data, manufacturing process know-how,
                and fuel injection and ignition systems.
                    (B) Small turboprop engines with a maximum
                continuous power output below 2,000 shaft horsepower,
                including associated reduction gearboxes, full
                authority digital engine control systems, and
                maintenance data packages.
                    (C) Engine test cell equipment, tooling, and
                software capable of certifying the engines described in
                subparagraphs (A) and (B) to FAA or equivalent
                standards.
            (2) Advanced composite airframes and structural systems.--
                    (A) Carbon fiber and advanced composite airframe
                structures, tooling, and layup processes used in the
                production of high-performance general aviation
                aircraft, including structural health monitoring
                systems using embedded sensor arrays or acoustic
                emission detection capable of real-time structural
                integrity assessment.
                    (B) Associated design data, finite element analysis
                models, and FAA-approved structural repair manuals for
                composite airframes that would enable foreign entities
                to reproduce or adapt airframe designs for unmanned or
                military platforms.
            (3) Avionics and flight control systems.--
                    (A) Autopilot and flight director systems capable
                of coupling with a flight management system and
                executing instrument approaches to Category I precision
                minimums or better, when designed or adaptable for
                platforms with a maximum takeoff weight below 12,500
                pounds.
                    (B) Fly-by-wire flight control systems for general
                aviation or light sport aircraft.
                    (C) Integrated avionics suites combining
                navigation, communication, surveillance, and flight
                management functions on a common software-defined
                architecture, when such architecture is capable of
                software reconfiguration to support unmanned flight
                operations.
                    (D) Air-to-ground and air-to-air data link systems
                operating in frequency bands allocated for aeronautical
                mobile services, when combined with or capable of
                integration with an autopilot or flight management
                system.
    (c) Report to Congress.--Not later than 270 days after the date of
enactment of this Act, the Secretary of Commerce shall submit to the
Committee on Foreign Affairs and the Committee on Armed Services of the
House of Representatives, and the Committee on Foreign Relations and
the Committee on Armed Services of the Senate, a report setting forth--
            (1) the findings of the review conducted under subsection
        (b);
            (2) the specific Export Control Classification Number
        revisions, new entries, or license requirements the Secretary
        has implemented or proposes to implement with respect to each
        technology category described in subsection (b); and
            (3) any interagency disagreements regarding classification
        decisions and how such disagreements were or are being
        resolved.
    (d) Wassenaar Arrangement and Multilateral Controls.--The Secretary
of State, in coordination with the Secretary of Commerce and the
Secretary of Defense, shall seek to advance analogous control measures
for the technologies described in subsection (b) through the Wassenaar
Arrangement on Export Controls for Conventional Arms and Dual-Use Goods
and Technologies and other applicable multilateral export control
regimes, consistent with United States national security and foreign
policy objectives.

SEC. 6. OUTBOUND INVESTMENT NOTIFICATION FOR GENERAL AVIATION
              TECHNOLOGIES.

    (a) Findings.--Congress finds that--
            (1) the outbound investment notification program
        established pursuant to Executive Order 14105 of August 9, 2023
        (88 Fed. Reg. 54867), and the implementing regulations
        promulgated by the Department of the Treasury at part 850 of
        title 31, Code of Federal Regulations, do not currently
        encompass general aviation-sector transactions; and
            (2) United States persons investing in PRC projects
        involving general aviation airframes, engines, or avionics risk
        facilitating technology transfer that serves PRC Military-Civil
        Fusion objectives and strengthens the aviation-industrial base
        of a country of concern.
    (b) Covered Outbound General Aviation Transactions.--Not later than
180 days after the date of enactment of this Act, the Secretary of the
Treasury, in consultation with the Secretary of Commerce and the
Secretary of Defense, shall promulgate regulations to require any
United States person to--
            (1) submit a mandatory notification to the Department of
        the Treasury before completing any transaction that would
        constitute a covered outbound general aviation transaction; and
            (2) for any transaction described in subsection (c)(2)(B),
        obtain prior approval from the Department of the Treasury
        before completing such transaction.
    (c) Definitions.--For purposes of this section:
            (1) Covered foreign entity.--The term ``covered foreign
        entity'' means an entity organized under the laws of, or with
        its principal place of business in, a country of concern.
            (2) Covered outbound general aviation transaction.--The
        term ``covered outbound general aviation transaction'' means
        any of the following transactions by a United States person
        with a covered foreign entity:
                    (A) Notification-required transactions.--Any
                acquisition of an equity interest or contingent equity
                interest in a covered foreign entity that is engaged in
                the development, manufacture, or sale of--
                            (i) general aviation airframes or
                        rotorcraft structures, including composite
                        airframe manufacturing;
                            (ii) aircraft engines or propulsion systems
                        designed or adaptable for general aviation or
                        unmanned aerial system applications; or
                            (iii) avionics, autopilot, or flight
                        management systems for general aviation
                        platforms.
                    (B) Approval-required transactions.--Any
                transaction described in subparagraph (A) in which the
                covered foreign entity--
                            (i) is owned by, controlled by, or subject
                        to the direction of the government of a country
                        of concern;
                            (ii) is listed, or whose ultimate parent is
                        listed, on the NS-CMIC List; or
                            (iii) has, within the preceding 5 years,
                        entered into a formal cooperation agreement,
                        joint venture, or technology-sharing
                        arrangement with an entity of a country of
                        concern's military, paramilitary, or state
                        security apparatus.
            (3) United states person.--The term ``United States
        person'' has the meaning given that term in section 850.101 of
        title 31, Code of Federal Regulations (or any successor
        regulation).
    (d) Civil Penalties.--Any United States person that fails to submit
a notification required under subsection (b)(1), or that completes a
transaction requiring prior approval under subsection (b)(2) without
such approval, shall be subject to civil monetary penalties in
accordance with section 206 of the International Emergency Economic
Powers Act (50 U.S.C. 1705), as applicable.
    (e) Relationship to Existing Outbound Investment Program.--The
notification and approval requirements established pursuant to this
section shall be implemented as an amendment to, or in coordination
with, the program established under part 850 of title 31, Code of
Federal Regulations, and shall apply in addition to, and not in lieu
of, any requirements under Executive Order 14105 or any successor
order.

SEC. 7. REVIEW OF EXISTING FOREIGN ADVERSARY OWNERSHIP OF GENERAL
              AVIATION COMPANIES.

    Not later than 180 days after the date of enactment of this Act,
the Committee on Foreign Investment in the United States shall--
            (1) conduct a comprehensive review of all previously
        completed transactions in which a foreign person from a country
        of concern acquired a covered general aviation entity;
            (2) determine, for each such transaction, whether--
                    (A) the national security agreement or mitigation
                measures (if any) in effect with respect to such
                transaction remain adequate to protect United States
                national security in light of the designations of the
                acquirer or its affiliates under the NS-CMIC List, the
                Department of Defense's Section 1260H list, or any
                applicable export control order; and
                    (B) changed circumstances, including applicable
                designations or new intelligence assessments, warrant
                reopening the review of such transaction pursuant to
                section 721 of the Defense Production Act of 1950 (50
                U.S.C. 4565); and
            (3) submit to the Committee on Financial Services and the
        Committee on Armed Services of the House of Representatives,
        and the Committee on Banking, Housing, and Urban Affairs and
        the Committee on Armed Services of the Senate, a classified
        report setting forth--
                    (A) the transactions reviewed pursuant to paragraph
                (1), including the identity of each foreign acquirer
                and each acquired general aviation entity;
                    (B) the determination made pursuant to paragraph
                (2) with respect to each such transaction; and
                    (C) any actions taken or recommended by the
                Committee as a result of such determinations, including
                any recommendation for divestiture pursuant to section
                721 of the Defense Production Act of 1950 (50 U.S.C.
                4565).

SEC. 8. SUPPLY CHAIN INTEGRITY AUDITS FOR FOREIGN ADVERSARY-CONTROLLED
              AVIATION CERTIFICATE HOLDERS.

    (a) Directed Review.--Not later than 270 days after the date of
enactment of this Act, the Administrator of the Federal Aviation
Administration, in coordination with the Director of the Cybersecurity
and Infrastructure Security Agency and the Secretary of Defense, shall
conduct a comprehensive supply chain integrity audit of all avionics
systems, flight control systems, and aircraft engine control systems
(including full authority digital engine control systems) that are
designed, manufactured, or maintained by any covered general aviation
entity that is owned, controlled, or directed by a foreign person from
a country of concern and that holds any of the following:
            (1) A production certificate issued pursuant to part 21 of
        title 14, Code of Federal Regulations.
            (2) A parts manufacturer approval issued pursuant to part
        21 of title 14, Code of Federal Regulations.
            (3) A technical standard order authorization issued
        pursuant to part 21 of title 14, Code of Federal Regulations.
    (b) Scope.--The audit required under subsection (a) shall assess--
            (1) whether any such system contains unauthorized hardware
        components, embedded firmware, or software code capable of
        enabling remote access, data exfiltration, or operational
        interference by a foreign person;
            (2) whether existing FAA certification processes are
        adequate to detect such components; and
            (3) whether any mitigation agreements in effect with
        respect to such entities adequately address supply chain
        integrity risks.
    (c) Technical Assistance.--In carrying out the audit required under
subsection (a), the FAA Administrator and the Director of the
Cybersecurity and Infrastructure Security Agency may request technical
assistance from the Director of the National Security Agency and the
Director of the Defense Advanced Research Projects Agency, including
hardware forensic analysis, firmware reverse engineering, and
adversarial threat assessment support. The Director of the National
Security Agency and the Director of the Defense Advanced Research
Projects Agency are authorized to provide such assistance consistent
with their respective statutory authorities.
    (d) Remedial Authority.--Upon a finding that any system audited
under subsection (a) contains a component described in subsection
(b)(1), the FAA Administrator may, consistent with part 39 of title 14,
Code of Federal Regulations, issue an airworthiness directive requiring
inspection, modification, or replacement of the affected system.
    (e) Report.--Not later than 1 year after the date of enactment of
this Act, the FAA Administrator shall submit to the relevant
congressional committees a report, which may include a classified
annex, describing the findings of the audit and any remedial actions
taken or recommended.

SEC. 9. RESTRICTIONS ON FEDERAL FINANCIAL ASSISTANCE; FOREIGN OWNERSHIP
              DISCLOSURE REQUIREMENT.

    (a) Prohibition.--Notwithstanding any other provision of law, no
Federal funds appropriated or otherwise made available on or after the
date of enactment of this Act shall be obligated or expended as a loan,
loan guarantee, grant, or contract with any covered general aviation
entity that--
            (1) that is owned by, controlled by, or subject to the
        direction of--
                    (A) a foreign person from a country of concern;
                    (B) any entity listed on the NS-CMIC List; or
                    (C) any entity in which the government of a country
                of concern holds, directly or indirectly, a 5 percent
                or greater equity interest; or
            (2) that derives 10 percent or more of its operating
        income, as determined under the General Accepted Accounting
        Principles published by the Financial Accounting Standards
        Board, from an entity based in a country of concern.
    (b) Clawback Authority.--The head of any Federal agency shall take
all available legal measures to recover Federal financial assistance,
including through demand letters, administrative offset under section
3716 of title 31, United States Code, or referral to the Department of
Justice for civil recovery under section 516 of title 28, United States
Code, where--
            (1) such assistance was obligated or expended on or after
        the date of enactment of this Act in violation of the
        prohibition established under subsection (a); or
            (2) such assistance was obligated or expended on or after
        the date of enactment of this Act to an entity that
        subsequently became subject to the prohibition under subsection
        (a) as a result of a post-enactment change in ownership or
        control.
    (c) Covered Federal Financial Assistance.--For purposes of this
section, the term ``Federal financial assistance'' includes--
            (1) loans, grants, or loan guarantees provided under any
        provision of Federal law, including programs administered by
        the Small Business Administration under the Small Business Act
        (15 U.S.C. 631 et seq.);
            (2) contracts or subcontracts awarded pursuant to the
        Federal Acquisition Regulation (48 CFR chpt. 1); and
            (3) any other direct or indirect Federal financial benefit
        of a value exceeding $50,000 in any 12-month period.
    (d) Certification Requirement.--As a condition of receiving any
Federal financial assistance described in subsection (c), a covered
general aviation entity shall annually certify to the relevant Federal
agency, under penalty of section 1001 of title 18, United States Code,
that--
            (1) it is not owned, controlled, or directed by a foreign
        person from a country of concern and that no such foreign
        person holds, directly or indirectly, 5 percent or more of any
        class of its equity or voting interests; and
            (2) it does not derive 10 percent or more of its operating
        income, as determined under the General Accepted Accounting
        Principles published by the Financial Accounting Standards
        Board, from an entity based in a country of concern.
    (e) Foreign Ownership Disclosure Requirement.--
            (1) In general.--Any covered general aviation entity that
        is owned, controlled, or directed, directly or indirectly, by a
        foreign person holding 5 percent or more of any class of equity
        or voting interests or that derives 10 percent or more of its
        operating income (as determined under the General Accepted
        Accounting Principles published by the Financial Accounting
        Standards Board) from an entity based in a country of concern
        shall prominently disclose such foreign ownership in each of
        the following:
                    (A) FAA production certificate filings.--Any
                application for, renewal of, or amendment to a
                production certificate issued pursuant to part 21 of
                title 14, Code of Federal Regulations, shall include a
                disclosure statement identifying--
                            (i) the name, nationality, and jurisdiction
                        of organization of each foreign person holding,
                        directly or indirectly, 5 percent or more of
                        any class of equity or voting interests in the
                        applicant or certificate holder;
                            (ii) the percentage interest held by each
                        such foreign person; and
                            (iii) whether any such foreign person is an
                        entity of a country of concern, is listed on
                        the NS-CMIC List, the Entity List maintained
                        under part 744 of title 15, Code of Federal
                        Regulations, or the Specially Designated
                        Nationals and Blocked Persons List.
                    (B) Federal contract and grant applications.--Any
                application, offer, bid, or proposal submitted by a
                covered general aviation entity in connection with any
                Federal contract, subcontract, grant, cooperative
                agreement, or other Federal financial assistance
                described in subsection (c) shall include, on the face
                of such submission, a disclosure statement containing
                the information required under subparagraph (A)(i)
                through (iii).
            (2) Implementing regulations.--Not later than 180 days
        after the date of enactment of this Act, the Administrator of
        the FAA and the Federal Acquisition Regulatory Council shall
        each promulgate such regulations as may be necessary to
        implement paragraph (1) within their respective jurisdictions,
        including regulations specifying the form, placement, and
        timing of required disclosure statements.
            (3) Penalties.--
                    (A) Any covered general aviation entity that
                knowingly fails to make a disclosure required under
                paragraph (1), or that knowingly makes a false or
                misleading disclosure, shall be subject to civil
                monetary penalties as determined by the relevant
                Federal agency.
                    (B) In addition to the civil penalties under
                subparagraph (A), any knowing false or misleading
                disclosure made in connection with a Federal contract,
                grant, or financial assistance application shall
                constitute a violation of section 1001 of title 18,
                United States Code, and may subject the entity and its
                responsible officers to criminal prosecution
                thereunder.
                    (C) The FAA Administrator may suspend or revoke a
                production certificate held by any entity that
                knowingly fails to make or falsifies a disclosure
                required under paragraph (1)(A), consistent with the
                procedures under part 13 of title 14, Code of Federal
                Regulations.
            (4) Relationship to certification requirement.--The
        disclosure requirement under this subsection is in addition to,
        and shall not be construed to limit or substitute for, the
        annual certification requirement under subsection (d).

SEC. 10. DEFINITIONS.

    In this Act, unless otherwise provided:
            (1) CFIUS.--The term ``CFIUS'' or ``Committee'' means the
        Committee on Foreign Investment in the United States
        established under section 721(k) of the Defense Production Act
        of 1950 (50 U.S.C. 4565(k)).
            (2) Country of concern.--The term ``country of concern''
        has the meaning given the term in section 809 of the Defense
        Production Act of 1950 (50 U.S.C. 4589).
            (3) Covered general aviation entity.--The term ``covered
        general aviation entity'' means any United States business
        that--
                    (A) holds an FAA production certificate issued
                pursuant to part 21 of title 14, Code of Federal
                Regulations, for the manufacture of aircraft engines,
                propellers, or airframes intended for use in the United
                States civil aviation fleet;
                    (B) designs, manufactures, or sells avionics or
                flight control systems, including autopilot systems,
                glass cockpit displays, or air-to-ground data link
                systems, intended primarily for general aviation
                aircraft, as that term is defined in section
                40102(a)(17) of title 49, United States Code;
                    (C) is a type certificate holder or production
                certificate holder under part 21 of title 14, Code of
                Federal Regulations, for helicopters or light
                rotorcraft with a maximum certificated takeoff weight
                of 12,500 pounds or less; or
                    (D) holds a certificate of approval as an FAA-
                certificated pilot school under part 141 of title 14,
                Code of Federal Regulations, or an aviation training
                center under part 142 of title 14, Code of Federal
                Regulations, and is located within 50 nautical miles of
                a military installation (as such term is defined in
                section 802.227 of title 31, Code of Federal
                Regulations).
            (4) FAA.--The term ``FAA'' means the Federal Aviation
        Administration.
            (5) General aviation.--The term ``general aviation'' has
        the meaning given the term ``general aviation aircraft'' in
        section 40102(a)(17) of title 49, United States Code.
            (6) Military-civil fusion.--The term ``military-civil
        fusion'' means the strategy of the People's Republic of China,
        codified in the PRC's National Intelligence Law of 2017 and
        related policies, that requires civilian entities, including
        private companies, to support, cooperate with, and strengthen
        the military, defense mobilization, and intelligence apparatus
        of the PRC upon demand.
            (7) NS-CMIC list.--The term ``NS-CMIC List'' means the Non-
        SDN Chinese Military-Industrial Complex Companies List
        maintained by the Office of Foreign Assets Control of the
        Department of the Treasury pursuant to Executive Order 13959
        (85 Fed. Reg. 73185), as amended, or any successor list.
            (8) Type certificate; production certificate.--The terms
        ``type certificate'' and ``production certificate'' have the
        meanings given those terms under part 21 of title 14, Code of
        Federal Regulations.

SEC. 11. SEVERABILITY.

    If any provision of this Act, or the application of any such
provision to any person or circumstance, is held to be
unconstitutional, the remainder of this Act, and the application of the
remaining provisions to any person or circumstance, shall not be
affected thereby.

SEC. 12. EFFECTIVE DATE.

    Except as otherwise specifically provided in this Act, this Act
shall take effect on the date of its enactment. The amendments made by
sections 2, 3, and 4 shall apply to transactions for which a definitive
agreement is entered into on or after the date of enactment. The review
directed under section 7 shall apply to all previously completed
transactions, regardless of the date of completion. The prohibition and
clawback authority under section 9(a) and (b) shall apply only to
Federal financial assistance obligated or expended on or after the date
of enactment; nothing in section 9 shall be construed to impose
liability, require repayment, or authorize recovery with respect to any
Federal financial assistance obligated or expended prior to the date of
enactment, except as may be available under the False Claims Act (31
U.S.C. 3729 et seq.) or other law in effect at the time such assistance
was provided.
                                 <all>