,i #aai? ,,congress #b;d ,session ,h4 ,r4 #igjg ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,july #ae1 #bjbf,mr4 ,h>rigan 7= himself & ,mr4 ,mack5zie7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,f9ancial ,s]vices1 & 9 addition to ! ,committees on ,=eign ,affairs1 ,en]gy & ,comm]ce1 ,transportation & ,infra/ructure1 ,ov]sight & ,gov]nm5t ,re=m1 & ,small ,bus9ess1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to protect ! national security ( ! ,unit$ ,/ates by /r5g!n+ review ( =eign adv]s>y inve/m5ts 9 ! g5]al aviation sector1 & = o!r purposes4 #a4 ,%ort title2 table ( cont5ts 7a7 ,%ort title ,?is ,act may be cit$ z ! ,g5]al ,aviation ,protection ,act or ! ,,gap ,act4 7b7 ,table ( cont5ts ,! table ( cont5ts ( ?is ,act is z foll[s3 ,sec4 #a4 ,%ort title2 table ( cont5ts4 ,sec4 #b4 ,m&atory ,,cfius fil+ = cov]$ aviation transactions4 ,sec4 #c4 ,ext5d$ ,,cfius real-e/ate jurisdiction = g5]al aviation facilities4 ,sec4 #d4 ,rebuttable presumption ( prohibition = =eign adv]s>y acquisitions ( g5]al aviation companies4 ,sec4 #e4 ,review & classification ( g5]al aviation dual-use te*nologies4 ,sec4 #f4 ,outb\nd inve/m5t notification = g5]al aviation te*nologies4 ,sec4 #g4 ,review ( exi/+ =eign adv]s>y own]%ip ( g5]al aviation companies4 ,sec4 #h4 ,supply *a9 integrity audits = =eign adv]s>y-controll$ aviation c]tificate hold]s4 ,sec4 #i4 ,re/rictions on ,f$]al f9ancial assi/ance2 =eign own]%ip disclosure requirem5t4 ,sec4 #aj4 ,def9itions4 ,sec4 #aa4 ,sev]ability4 ,sec4 #ab4 ,effective date4 #b4 ,m&atory ,,cfius fil+ = cov]$ aviation transactions 7a7 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,! g5]al aviation sector ( ! ,unit$ ,/ates repres5ts a critical compon5t ( ! national a]ospace & def5se indu/rial base4 ,g5]al aviation aircraft1 eng9es1 avionics sy/ems1 & relat$ te*nologies support pilot tra9+ pipel9es = bo? civilian & milit>y aviators1 s]ve z plat=ms = surveillance1 logi/ics1 & em]g5cy response op]ations1 & =m an integral "p ( ! supply *a9s support+ ! ,unit$ ,/ates ,arm$ ,=ces & ,f$]al ag5cies4 7#b7 ,! ,p's ,republic ( ,*9a 7,,prc7 has1 ov] ! pa/ two decades1 sy/ematically acquir$ ,unit$ ,/ates g5]al aviation manufactur]s1 eng9e produc]s1 avionics firms1 & flight tra9+ infra/ructure1 includ+ ?r\gh entities :olly own$ or direct$ by ! ,aviation ,indu/ry ,corporation ( ,*9a 7,,avic71 a conglom]ate designat$ z a ,*9ese milit>y company "u section #abcg ( ! ,national ,def5se ,au?orization ,act = ,fiscal ,ye> #aiii 7#ej ,u4,s4,c4 #agja note7 & li/$ on ! ,non-,,sdn ,*9ese ,milit>y-,indu/rial ,complex ,companies ,li/ 7,,ns-,,cmic ,li/7 ma9ta9$ by ! ,(fice ( ,=eign ,assets ,control4 7#c7 ,,prc entities h made m ?an #bj acquisitions (1 inve/m5ts 91 or jo9t v5ture agreem5ts ) ,unit$ ,/ates g5]al aviation companies s9ce #bjje1 spann+ eng9e manufactur]s1 airframe produc]s1 avionics develop]s1 helicopt] manufactur]s1 & flight tra9+ op]ators4 ,! patt]n & pace ( ^! transactions1 _! conc5tration 9 /rategically s5sitive subsectors1 & _! alignm5t ) /at$ ,,prc indu/rial policy objectives con/itute a coord9at$ campaign r ?an ord9>y comm]cial inve/m5t activity4 7#d7 ,^! acquisitions h result$ 9 ! transf] to ,,prc-controll$ entities ( ,f$]al ,aviation ,adm9i/ration 7,,faa7 production c]tificates1 advanc$ composite airframe manufactur+ exp]tise1 high-effici5cy pi/on eng9e te*nology1 & ,,faa-c]tifi$ avionics integration k1 capabilities t c>ry direct application to unmann$ a]ial sy/ems1 milit>y tra9]s1 & dual-use aviation plat=ms4 7#e7 ,congress has previ\sly recogniz$ analog\s national security risks 9 o!r sectors & tak5 corrective action1 includ+ ?r\gh ! ,protect+ ,am]icans f ,=eign ,adv]s>y ,controll$ ,applications ,act 7,public ,law #aah-ej71 re/rictions on ,huawei & ,,zte ,corporation equipm5t 9 ,unit$ ,/ates telecommunications networks "u ! ,secure & ,tru/$ ,communications ,networks ,act ( #bjai 7#dg ,u4,s4,c4 #afja et seq471 & prohibitions on ,,avic-affiliat$ entities 9 ,unit$ ,/ates def5se procurem5t4 ,! g5]al aviation sector w>rants equival5t congressional att5tion & protection4 7b7 ,am5dm5ts to ! def5se production act ( #aiej ,section #gba ( ! ,def5se ,production ,act ( #aiej 7#ej ,u4,s4,c4 #defe7 is am5d$-- 7#a7 9 subsection 7a7-- 7,a7 by r$esignat+ p>agraphs 7#h7 ?r\gh 7#ac7 z p>agraphs 7#aj7 ?r\gh 7#ae71 respectively2 & 7,b7 by ins]t+ aft] p>agraph 7#g7 ! foll[+ new p>agraphs3 7#h7 ,cov]$ aviation transaction ,! t]m cov]$ aviation transaction means any cov]$ transaction 9 :i*-- 7,a7 ! acquir] is a =eign p]son f a c\ntry ( conc]n2 & 7,b7 ! ,unit$ ,/ates bus9ess is a cov]$ g5]al aviation entity4 7#i7 ,cov]$ g5]al aviation entity ,! t]m cov]$ g5]al aviation entity means any ,unit$ ,/ates bus9ess t-- 7,a7 holds an ,,faa production c]tificate issu$ pursuant to "p #ba ( title #ad1 ,code ( ,f$]al ,regulations1 = ! manufacture ( aircraft eng9es1 propell]s1 or airframes int5d$ = use 9 ! ,unit$ ,/ates civil aviation fleet2 7,b7 designs1 manufactures1 or sells avionics or flight control sy/ems1 includ+ autopilot sy/ems1 glass cockpit displays1 or air-to-gr\nd data l9k sy/ems1 int5d$ prim>ily = g5]al aviation aircraft1 z t t]m is def9$ 9 section #djajb7;a77#ag7 ( title #di1 ,unit$ ,/ates ,code2 7,c7 is a type c]tificate hold] or production c]tificate hold] "u "p #ba ( title #ad1 ,code ( ,f$]al ,regulations1 = helicopt]s or light rotorcraft ) a maximum c]tificat$ take(f weight ( #ab1ejj p\nds or less2 or 7,d7 holds a c]tificate ( approval z an ,,faa-c]tificat$ pilot s*ool "u "p #ada ( title #ad1 ,code ( ,f$]al ,regulations1 or an aviation tra9+ c5t] "u "p #adb ( title #ad1 ,code ( ,f$]al ,regulations1 & is locat$ )9 #ej nautical miles ( a milit>y in/allation 7z su* t]m is def9$ 9 section #hjb4bbg ( title #ca1 ,code ( ,f$]al ,regulations74 2 7#b7 9 subsection 7b77#a77;,c77v77,,iv71 by add+ at ! end ! foll[+3 7hh7 ,cov]$ aviation transaction ,! ,committee %all require a decl>ation "u ?is subclause = a cov]$ aviation transaction4 2 & 7#c7 9 subsection 7f7-- 7,a7 9 p>agraph 7#aj71 by /rik+ & at ! end2 7,b7 by r$esignat+ p>agraph 7#aa7 z p>agraph 7#ac72 & 7,c7 by ins]t+ aft] p>agraph 7#aj7 ! foll[+3 7#aa7 ) respect to a cov]$ aviation transaction-- 7,a7 ! applicability ( ! acquir]'s home c\ntry's milit>y-civil fusion policies1 or analog\s policies1 to ! acquir$ ,unit$ ,/ates bus9ess2 7,b7 ! dual-use pot5tial ( ! products1 te*nologies1 or manufactur+ processes ( ! acquir$ bus9ess = unmann$ a]ial sy/ems or milit>y aviation plat=ms2 & 7,c7 ! acquir$ bus9ess's p>ticipation 9 ,,faa c]tification programs1 supply *a9s support+ ,f$]al ag5cies1 or flight tra9+ programs t tra9 =eign nationals2 7#ab7 if a bus9ess has an ultimate =eign p>5t entity on ! ,,ns-,,cmic ,li/1 ! ,entity ,li/ ma9ta9$ "u "p #gdd ( title #ae1 ,code ( ,f$]al ,regulations1 or ! ,specially ,designat$ ,nationals & ,block$ ,p]sons ,li/2 & 4 7c7 ,implem5t+ regulations ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury1 9 coord9ation ) ! ,secret>y ( ,def5se1 ! ,secret>y ( ,transportation1 & ! ,secret>y ( ,comm]ce1 %all promulgate regulations implem5t+ ! am5dm5ts made by subsection 7b74 #c4 ,ext5d$ ,,cfius real-e/ate jurisdiction = g5]al aviation facilities 7a7 ,9 g5]al ,section #gba7;a77#d77;,b77ii7 ( ! ,def5se ,production ,act ( #aiej 7#ej ,u4,s4,c4 #defe7;a77#d77;,b77ii77 is fur!r am5d$-- 7#a7 9 subclause 7,,ii77bb77,,cc71 by /rik+ & at ! end2 7#b7 9 subclause 7,,iii71 by /rik+ ! p]iod at ! end & ins]t+ 2 &2 & 7#c7 by add+ at ! end ! foll[+3 7,,iv7 is g5]al aviation airport c]tificat$ "u "p #aci ( title #ad1 ,code ( ,f$]al ,regulations1 or any real prop]ty-- 7aa7 us$ or int5d$ to be us$ z a fix$-base op]ator facility1 hang>1 flight s*ool campus1 or g5]al aviation ma9t5ance facility2 & 7bb7 locat$ )9 #ej nautical miles ( a milit>y in/allation 7z su* t]m is def9$ 9 section #hjb4bbg ( title #ca1 ,code ( ,f$]al ,regulations7 or )9 #aj nautical miles ( ,class ,b or ,class ,c airspace surr\nd+ a major civil-milit>y jo9t-use airport4 4 7b7 ,rebuttable presumption ,:5 evaluat+ any real e/ate transaction describ$ 9 subsection 7a7 9 :i* ! acquir] is a =eign p]son f a c\ntry ( conc]n1 ! ,committee %all presume t su* transaction poses a risk to national security b su* presumption may be rebutt$ ) a %[+ ( cle> & conv9c+ evid5ce t ! transaction w n provide ! =eign p]son )-- 7#a7 a capability to conduct surveillance1 signals collection1 or intellig5ce ga!r+ at or ne> a milit>y in/allation or re/rict$ airspace2 7#b7 p]si/5t physical access to aviation infra/ructure support+ ,unit$ ,/ates civil or milit>y op]ations2 or 7#c7 a base ( op]ations = flight tra9+ activities t w\ld b5efit ! milit>y aviation programs ( a c\ntry ( conc]n4 #d4 ,rebuttable presumption ( prohibition = =eign adv]s>y acquisitions ( g5]al aviation companies ,section #gba ( ! ,def5se ,production ,act ( #aiej 7#ej ,u4,s4,c4 #defe7 is fur!r am5d$ by add+ at ! end ! foll[+3 7r7 ,rebuttable presumption ( prohibition = cov]$ aviation transactions 7#a7 ,presumption ,not)/&+ any o!r provision ( ?is section1 a cov]$ aviation transaction %all be prohibit$ ) respect to any cov]$ aviation transaction 9 :i* ! acquir]-- 7,a7 is an entity own$ by1 controll$ by1 or subject to ! jurisdiction or direction ( a c\ntry ( conc]n1 includ+ any entity 9 :i* a gov]nm5t ( a c\ntry ( conc]n holds1 directly or indirectly1 a #e-p]c5t or great] equity int]e/2 7,b7 is an entity on ! ,non-,,sdn ,*9ese ,milit>y-,indu/rial ,complex ,companies ,li/ 7,,ns-,,cmic ,li/7 ma9ta9$ by ! ,(fice ( ,=eign ,assets ,control1 or any subsidi>y1 p>5t1 affiliate1 or successor entity !re(2 7,c7 is an entity1 bas$ on cr$ible evid5ce z det]m9$ by ! ,committee1 t is act+ z a conduit1 nom9ee1 or front company = any entity describ$ 9 subp>agraph 7,a7 or 7,b72 or 7,d7 d]ives #aj p]c5t or m ( its op]at+ income1 z det]m9$ "u ! ,g5]al ,accept$ ,acc\nt+ ,pr9ciples publi%$ by ! ,f9ancial ,acc\nt+ ,/&>ds ,bo>d1 f an entity bas$ 9 a c\ntry ( conc]n4 7#b7 ,rebuttal ,! presumption e/abli%$ "u p>agraph 7#a7 may be rebutt$ only by ! acquir]1 by cle> & conv9c+ evid5ce submitt$ to ! ,committee demon/rat+ t-- 7,a7 ! transaction does n create any risk ( transf] ( te*nology1 manufactur+ "k-h[1 ,,faa c]tification data1 or eng9e]+ tal5t to a c\ntry ( conc]n2 7,b7 en=ceable1 v]ifiable mitigation measures exi/ t w\ld prev5t any su* transf]2 7,c7 ! transaction does n und]m9e ! availability or integrity ( ! ,unit$ ,/ates civil aviation supply *a92 & 7,d7 approval ( ! transaction is 9 ! national security int]e/ ( ! ,unit$ ,/ates4 7#c7 ,no mitigation = c]ta9 entities ,) respect to any acquir] t is an entity li/$ on ! ,,ns-,,cmic ,li/ or any entity 9 :i* ! gov]nm5t ( a c\ntry ( conc]n holds1 directly or indirectly1 #be p]c5t or great] equity or vot+ int]e/1 no mitigation agreem5t "u subsection 7l7 %all be consid]$ suffici5t to rebut ! presumption e/abli%$ "u p>agraph 7#a74 ,! ,presid5t may only approve su* a transaction ^u a writt5 det]m9ation to ,congress1 includ$ 9 ! report+ requir$ "u subsection 7m71 t approval is 9 ! p>am\nt national security int]e/ ( ! ,unit$ ,/ates4 4 #e4 ,review & classification ( g5]al aviation dual-use te*nologies 7a7 ,f9d+s ,congress f9ds t c]ta9 g5]al aviation te*nologies h significant dual-use pot5tial1 includ+ = unmann$ a]ial sy/ems1 milit>y tra9]s1 & tactical aviation plat=ms1 b are n curr5tly classifi$ z controll$ items on ! ,comm]ce ,control ,li/ 7,,ccl7 ma9ta9$ pursuant to "p #ggd ( title #ae1 ,code ( ,f$]al ,regulations1 or are controll$ at inadequate levels relative to _! /rategic significance4 7b7 ,requir$ review ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ,comm]ce1 9 coord9ation ) ! ,secret>y ( ,def5se & ! ,secret>y ( ,/ate1 %all conduct a compreh5sive review ( ! ,,ccl & relat$ ,export ,adm9i/ration ,regulations "u ! ,export ,control ,re=m ,act ( #bjah 7#ej ,u4,s4,c4 #dhaa et seq47 to det]m9e :e!r ! foll[+ te*nologies %\ld be newly classifi$ or reclassifi$ z controll$ items requir+ a lic5se = export1 reexport1 or 9-c\ntry transf] to c\ntries ( conc]n3 7#a7 ,high-effici5cy pi/on & small turboprop eng9es 7,a7 ,diesel-cycle & ,jet-,a-fuel capable horizontally oppos$ pi/on aircraft eng9es produc+ #ajj %aft horsep[] or great]1 includ+ associat$ type c]tificate data1 manufactur+ process "k-h[1 & fuel injection & ignition sy/ems4 7,b7 ,small turboprop eng9es ) a maximum cont9u\s p[] output bel[ #b1jjj %aft horsep[]1 includ+ associat$ r$uction ge>boxes1 full au?ority digital eng9e control sy/ems1 & ma9t5ance data packages4 7,c7 ,eng9e te/ cell equipm5t1 tool+1 & s(tw>e capable ( c]tify+ ! eng9es describ$ 9 subp>agraphs 7,a7 & 7,b7 to ,,faa or equival5t /&>ds4 7#b7 ,advanc$ composite airframes & /ructural sy/ems 7,a7 ,c>bon fib] & advanc$ composite airframe /ructures1 tool+1 & layup processes us$ 9 ! production ( high-p]=mance g5]al aviation aircraft1 includ+ /ructural heal? monitor+ sy/ems us+ emb$d$ s5sor arrays or ac\/ic emission detection capable ( real-"t /ructural integrity assessm5t4 7,b7 ,associat$ design data1 f9ite elem5t analysis models1 & ,,faa-approv$ /ructural repair manuals = composite airframes t w\ld enable =eign entities to reproduce or adapt airframe designs = unmann$ or milit>y plat=ms4 7#c7 ,avionics & flight control sy/ems 7,a7 ,autopilot & flight director sy/ems capable ( c\pl+ ) a flight managem5t sy/em & execut+ in/rum5t approa*es to ,category ,i precision m9imums or bett]1 :5 design$ or adaptable = plat=ms ) a maximum take(f weight bel[ #ab1ejj p\nds4 7,b7 ,fly-by-wire flight control sy/ems = g5]al aviation or light sport aircraft4 7,c7 ,integrat$ avionics suites comb9+ navigation1 communication1 surveillance1 & flight managem5t functions on a common s(tw>e-def9$ ar*itecture1 :5 su* ar*itecture is capable ( s(tw>e reconfiguration to support unmann$ flight op]ations4 7,d7 ,air-to-gr\nd & air-to-air data l9k sy/ems op]at+ 9 frequ5cy b&s allocat$ = a]onautical mobile s]vices1 :5 comb9$ ) or capable ( integration ) an autopilot or flight managem5t sy/em4 7c7 ,report to congress ,n lat] ?an #bgj days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ,comm]ce %all submit to ! ,committee on ,=eign ,affairs & ! ,committee on ,arm$ ,s]vices ( ! ,h\se ( ,repres5tatives1 & ! ,committee on ,=eign ,relations & ! ,committee on ,arm$ ,s]vices ( ! ,s5ate1 a report sett+ =?-- 7#a7 ! f9d+s ( ! review conduct$ "u subsection 7b72 7#b7 ! specific ,export ,control ,classification ,numb] revisions1 new entries1 or lic5se requirem5ts ! ,secret>y has implem5t$ or proposes to implem5t ) respect to ea* te*nology category describ$ 9 subsection 7b72 & 7#c7 any int]ag5cy disagreem5ts reg>d+ classification decisions & h[ su* disagreem5ts 7 or are be+ resolv$4 7d7 ,wass5a> arrangem5t & multilat]al controls ,! ,secret>y ( ,/ate1 9 coord9ation ) ! ,secret>y ( ,comm]ce & ! ,secret>y ( ,def5se1 %all seek to advance analog\s control measures = ! te*nologies describ$ 9 subsection 7b7 ?r\gh ! ,wass5a> ,arrangem5t on ,export ,controls = ,conv5tional ,arms & ,dual-,use ,goods & ,te*nologies & o!r applicable multilat]al export control regimes1 consi/5t ) ,unit$ ,/ates national security & =eign policy objectives4 #f4 ,outb\nd inve/m5t notification = g5]al aviation te*nologies 7a7 ,f9d+s ,congress f9ds t-- 7#a7 ! outb\nd inve/m5t notification program e/abli%$ pursuant to ,executive ,ord] #adaje ( ,augu/ #i1 #bjbc 7#hh ,f$4 ,reg4 #edhfg71 & ! implem5t+ regulations promulgat$ by ! ,dep>tm5t ( ! ,treasury at "p #hej ( title #ca1 ,code ( ,f$]al ,regulations1 d n curr5tly encompass g5]al aviation-sector transactions2 & 7#b7 ,unit$ ,/ates p]sons inve/+ 9 ,,prc projects involv+ g5]al aviation airframes1 eng9es1 or avionics risk facilitat+ te*nology transf] t s]ves ,,prc ,milit>y-,civil ,fusion objectives & /r5g!ns ! aviation-indu/rial base ( a c\ntry ( conc]n4 7b7 ,cov]$ outb\nd g5]al aviation transactions ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury1 9 consultation ) ! ,secret>y ( ,comm]ce & ! ,secret>y ( ,def5se1 %all promulgate regulations to require any ,unit$ ,/ates p]son to-- 7#a7 submit a m&atory notification to ! ,dep>tm5t ( ! ,treasury be=e complet+ any transaction t w\ld con/itute a cov]$ outb\nd g5]al aviation transaction2 & 7#b7 = any transaction describ$ 9 subsection 7c77#b77;,b71 obta9 prior approval f ! ,dep>tm5t ( ! ,treasury be=e complet+ su* transaction4 7c7 ,def9itions ,= purposes ( ?is section3 7#a7 ,cov]$ =eign entity ,! t]m cov]$ =eign entity means an entity organiz$ "u ! laws (1 or ) its pr9cipal place ( bus9ess 91 a c\ntry ( conc]n4 7#b7 ,cov]$ outb\nd g5]al aviation transaction ,! t]m cov]$ outb\nd g5]al aviation transaction means any ( ! foll[+ transactions by a ,unit$ ,/ates p]son ) a cov]$ =eign entity3 7,a7 ,notification-requir$ transactions ,any acquisition ( an equity int]e/ or cont+5t equity int]e/ 9 a cov]$ =eign entity t is engag$ 9 ! developm5t1 manufacture1 or sale (-- 7i7 g5]al aviation airframes or rotorcraft /ructures1 includ+ composite airframe manufactur+2 7ii7 aircraft eng9es or propulsion sy/ems design$ or adaptable = g5]al aviation or unmann$ a]ial sy/em applications2 or 7iii7 avionics1 autopilot1 or flight managem5t sy/ems = g5]al aviation plat=ms4 7,b7 ,approval-requir$ transactions ,any transaction describ$ 9 subp>agraph 7,a7 9 :i* ! cov]$ =eign entity-- 7i7 is own$ by1 controll$ by1 or subject to ! direction ( ! gov]nm5t ( a c\ntry ( conc]n2 7ii7 is li/$1 or ^: ultimate p>5t is li/$1 on ! ,,ns-,,cmic ,li/2 or 7iii7 has1 )9 ! prec$+ #e ye>s1 ent]$ into a =mal coop]ation agreem5t1 jo9t v5ture1 or te*nology-%>+ arrangem5t ) an entity ( a c\ntry ( conc]n's milit>y1 p>amilit>y1 or /ate security app>atus4 7#c7 ,unit$ /ates p]son ,! t]m ,unit$ ,/ates p]son has ! mean+ giv5 t t]m 9 section #hej4aja ( title #ca1 ,code ( ,f$]al ,regulations 7or any successor regulation74 7d7 ,civil p5alties ,any ,unit$ ,/ates p]son t fails to submit a notification requir$ "u subsection 7b77#a71 or t completes a transaction requir+ prior approval "u subsection 7b77#b7 )\t su* approval1 %all be subject to civil monet>y p5alties 9 accordance ) section #bjf ( ! ,int]national ,em]g5cy ,economic ,p[]s ,act 7#ej ,u4,s4,c4 #agje71 z applicable4 7e7 ,relation%ip to exi/+ outb\nd inve/m5t program ,! notification & approval requirem5ts e/abli%$ pursuant to ?is section %all be implem5t$ z an am5dm5t to1 or 9 coord9ation )1 ! program e/abli%$ "u "p #hej ( title #ca1 ,code ( ,f$]al ,regulations1 & %all apply 9 addition to1 & n 9 lieu (1 any requirem5ts "u ,executive ,ord] #adaje or any successor ord]4 #g4 ,review ( exi/+ =eign adv]s>y own]%ip ( g5]al aviation companies ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,committee on ,=eign ,inve/m5t 9 ! ,unit$ ,/ates %all-- 7#a7 conduct a compreh5sive review ( all previ\sly complet$ transactions 9 :i* a =eign p]son f a c\ntry ( conc]n acquir$ a cov]$ g5]al aviation entity2 7#b7 det]m9e1 = ea* su* transaction1 :e!r-- 7,a7 ! national security agreem5t or mitigation measures 7if any7 9 effect ) respect to su* transaction rema9 adequate to protect ,unit$ ,/ates national security 9 light ( ! designations ( ! acquir] or its affiliates "u ! ,,ns-,,cmic ,li/1 ! ,dep>tm5t ( ,def5se's ,section #abfj;,h li/1 or any applicable export control ord]2 & 7,b7 *ang$ circum/ances1 includ+ applicable designations or new intellig5ce assessm5ts1 w>rant reop5+ ! review ( su* transaction pursuant to section #gba ( ! ,def5se ,production ,act ( #aiej 7#ej ,u4,s4,c4 #defe72 & 7#c7 submit to ! ,committee on ,f9ancial ,s]vices & ! ,committee on ,arm$ ,s]vices ( ! ,h\se ( ,repres5tatives1 & ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs & ! ,committee on ,arm$ ,s]vices ( ! ,s5ate1 a classifi$ report sett+ =?-- 7,a7 ! transactions review$ pursuant to p>agraph 7#a71 includ+ ! id5tity ( ea* =eign acquir] & ea* acquir$ g5]al aviation entity2 7,b7 ! det]m9ation made pursuant to p>agraph 7#b7 ) respect to ea* su* transaction2 & 7,c7 any actions tak5 or recomm5d$ by ! ,committee z a result ( su* det]m9ations1 includ+ any recomm5dation = dive/iture pursuant to section #gba ( ! ,def5se ,production ,act ( #aiej 7#ej ,u4,s4,c4 #defe74 #h4 ,supply *a9 integrity audits = =eign adv]s>y-controll$ aviation c]tificate hold]s 7a7 ,direct$ review ,n lat] ?an #bgj days aft] ! date ( enactm5t ( ?is ,act1 ! ,adm9i/rator ( ! ,f$]al ,aviation ,adm9i/ration1 9 coord9ation ) ! ,director ( ! ,cyb]security & ,infra/ructure ,security ,ag5cy & ! ,secret>y ( ,def5se1 %all conduct a compreh5sive supply *a9 integrity audit ( all avionics sy/ems1 flight control sy/ems1 & aircraft eng9e control sy/ems 7includ+ full au?ority digital eng9e control sy/ems7 t are design$1 manufactur$1 or ma9ta9$ by any cov]$ g5]al aviation entity t is own$1 controll$1 or direct$ by a =eign p]son f a c\ntry ( conc]n & t holds any ( ! foll[+3 7#a7 ,a production c]tificate issu$ pursuant to "p #ba ( title #ad1 ,code ( ,f$]al ,regulations4 7#b7 ,a p>ts manufactur] approval issu$ pursuant to "p #ba ( title #ad1 ,code ( ,f$]al ,regulations4 7#c7 ,a te*nical /&>d ord] au?orization issu$ pursuant to "p #ba ( title #ad1 ,code ( ,f$]al ,regulations4 7b7 ,scope ,! audit requir$ "u subsection 7a7 %all assess-- 7#a7 :e!r any su* sy/em conta9s unau?oriz$ h>dw>e compon5ts1 emb$d$ firmw>e1 or s(tw>e code capable ( enabl+ remote access1 data exfiltration1 or op]ational int]f]5ce by a =eign p]son2 7#b7 :e!r exi/+ ,,faa c]tification processes are adequate to detect su* compon5ts2 & 7#c7 :e!r any mitigation agreem5ts 9 effect ) respect to su* entities adequately address supply *a9 integrity risks4 7c7 ,te*nical assi/ance ,9 c>ry+ out ! audit requir$ "u subsection 7a71 ! ,,faa ,adm9i/rator & ! ,director ( ! ,cyb]security & ,infra/ructure ,security ,ag5cy may reque/ te*nical assi/ance f ! ,director ( ! ,national ,security ,ag5cy & ! ,director ( ! ,def5se ,advanc$ ,rese>* ,projects ,ag5cy1 includ+ h>dw>e =5sic analysis1 firmw>e rev]se eng9e]+1 & adv]s>ial ?reat assessm5t support4 ,! ,director ( ! ,national ,security ,ag5cy & ! ,director ( ! ,def5se ,advanc$ ,rese>* ,projects ,ag5cy are au?oriz$ to provide su* assi/ance consi/5t ) _! respective /atutory au?orities4 7d7 ,rem$ial au?ority ,^u a f9d+ t any sy/em audit$ "u subsection 7a7 conta9s a compon5t describ$ 9 subsection 7b77#a71 ! ,,faa ,adm9i/rator may1 consi/5t ) "p #ci ( title #ad1 ,code ( ,f$]al ,regulations1 issue an airwor?9ess directive requir+ inspection1 modification1 or replacem5t ( ! affect$ sy/em4 7e7 ,report ,n lat] ?an #a ye> aft] ! date ( enactm5t ( ?is ,act1 ! ,,faa ,adm9i/rator %all submit to ! relevant congressional committees a report1 :i* may include a classifi$ annex1 describ+ ! f9d+s ( ! audit & any rem$ial actions tak5 or recomm5d$4 #i4 ,re/rictions on ,f$]al f9ancial assi/ance2 =eign own]%ip disclosure requirem5t 7a7 ,prohibition ,not)/&+ any o!r provision ( law1 no ,f$]al funds appropriat$ or o!rwise made available on or aft] ! date ( enactm5t ( ?is ,act %all be obligat$ or exp5d$ z a loan1 loan gu>antee1 grant1 or contract ) any cov]$ g5]al aviation entity t-- 7#a7 t is own$ by1 controll$ by1 or subject to ! direction (-- 7,a7 a =eign p]son f a c\ntry ( conc]n2 7,b7 any entity li/$ on ! ,,ns-,,cmic ,li/2 or 7,c7 any entity 9 :i* ! gov]nm5t ( a c\ntry ( conc]n holds1 directly or indirectly1 a #e p]c5t or great] equity int]e/2 or 7#b7 t d]ives #aj p]c5t or m ( its op]at+ income1 z det]m9$ "u ! ,g5]al ,accept$ ,acc\nt+ ,pr9ciples publi%$ by ! ,f9ancial ,acc\nt+ ,/&>ds ,bo>d1 f an entity bas$ 9 a c\ntry ( conc]n4 7b7 ,clawback au?ority ,! head ( any ,f$]al ag5cy %all take all available legal measures to recov] ,f$]al f9ancial assi/ance1 includ+ ?r\gh dem& lett]s1 adm9i/rative (fset "u section #cgaf ( title #ca1 ,unit$ ,/ates ,code1 or ref]ral to ! ,dep>tm5t ( ,ju/ice = civil recov]y "u section #eaf ( title #bh1 ,unit$ ,/ates ,code1 :]e-- 7#a7 su* assi/ance 0 obligat$ or exp5d$ on or aft] ! date ( enactm5t ( ?is ,act 9 violation ( ! prohibition e/abli%$ "u subsection 7a72 or 7#b7 su* assi/ance 0 obligat$ or exp5d$ on or aft] ! date ( enactm5t ( ?is ,act to an entity t subsequ5tly became subject to ! prohibition "u subsection 7a7 z a result ( a po/-enactm5t *ange 9 own]%ip or control4 7c7 ,cov]$ ,f$]al f9ancial assi/ance ,= purposes ( ?is section1 ! t]m ,f$]al f9ancial assi/ance includes-- 7#a7 loans1 grants1 or loan gu>antees provid$ "u any provision ( ,f$]al law1 includ+ programs adm9i/]$ by ! ,small ,bus9ess ,adm9i/ration "u ! ,small ,bus9ess ,act 7#ae ,u4,s4,c4 #fca et seq472 7#b7 contracts or subcontracts aw>d$ pursuant to ! ,f$]al ,acquisition ,regulation 7#dh ,,cfr *pt4 #a72 & 7#c7 any o!r direct or indirect ,f$]al f9ancial b5efit ( a value exce$+ #ej1jjj 9 any #ab-mon? p]iod4 7d7 ,c]tification requirem5t ,z a condition ( receiv+ any ,f$]al f9ancial assi/ance describ$ 9 subsection 7c71 a cov]$ g5]al aviation entity %all annually c]tify to ! relevant ,f$]al ag5cy1 "u p5alty ( section #ajja ( title #ah1 ,unit$ ,/ates ,code1 t-- 7#a7 x is n own$1 controll$1 or direct$ by a =eign p]son f a c\ntry ( conc]n & t no su* =eign p]son holds1 directly or indirectly1 #e p]c5t or m ( any class ( its equity or vot+ int]e/s2 & 7#b7 x does n d]ive #aj p]c5t or m ( its op]at+ income1 z det]m9$ "u ! ,g5]al ,accept$ ,acc\nt+ ,pr9ciples publi%$ by ! ,f9ancial ,acc\nt+ ,/&>ds ,bo>d1 f an entity bas$ 9 a c\ntry ( conc]n4 7e7 ,=eign own]%ip disclosure requirem5t 7#a7 ,9 g5]al ,any cov]$ g5]al aviation entity t is own$1 controll$1 or direct$1 directly or indirectly1 by a =eign p]son hold+ #e p]c5t or m ( any class ( equity or vot+ int]e/s or t d]ives #aj p]c5t or m ( its op]at+ income 7z det]m9$ "u ! ,g5]al ,accept$ ,acc\nt+ ,pr9ciples publi%$ by ! ,f9ancial ,acc\nt+ ,/&>ds ,bo>d7 f an entity bas$ 9 a c\ntry ( conc]n %all prom95tly disclose su* =eign own]%ip 9 ea* ( ! foll[+3 7,a7 ,,faa production c]tificate fil+s ,any application =1 r5ewal (1 or am5dm5t to a production c]tificate issu$ pursuant to "p #ba ( title #ad1 ,code ( ,f$]al ,regulations1 %all include a disclosure /atem5t id5tify+-- 7i7 ! "n1 nationality1 & jurisdiction ( organization ( ea* =eign p]son hold+1 directly or indirectly1 #e p]c5t or m ( any class ( equity or vot+ int]e/s 9 ! applicant or c]tificate hold]2 7ii7 ! p]c5tage int]e/ held by ea* su* =eign p]son2 & 7iii7 :e!r any su* =eign p]son is an entity ( a c\ntry ( conc]n1 is li/$ on ! ,,ns-,,cmic ,li/1 ! ,entity ,li/ ma9ta9$ "u "p #gdd ( title #ae1 ,code ( ,f$]al ,regulations1 or ! ,specially ,designat$ ,nationals & ,block$ ,p]sons ,li/4 7,b7 ,f$]al contract & grant applications ,any application1 (f]1 bid1 or proposal submitt$ by a cov]$ g5]al aviation entity 9 connection ) any ,f$]al contract1 subcontract1 grant1 coop]ative agreem5t1 or o!r ,f$]al f9ancial assi/ance describ$ 9 subsection 7c7 %all include1 on ! face ( su* submission1 a disclosure /atem5t conta9+ ! in=mation requir$ "u subp>agraph 7,a77i7 ?r\gh 7iii74 7#b7 ,implem5t+ regulations ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is ,act1 ! ,adm9i/rator ( ! ,,faa & ! ,f$]al ,acquisition ,regulatory ,c\ncil %all ea* promulgate su* regulations z may be necess>y to implem5t p>agraph 7#a7 )9 _! respective jurisdictions1 includ+ regulations specify+ ! =m1 placem5t1 & tim+ ( requir$ disclosure /atem5ts4 7#c7 ,p5alties 7,a7 ,any cov]$ g5]al aviation entity t kn[+ly fails to make a disclosure requir$ "u p>agraph 7#a71 or t kn[+ly makes a false or mislead+ disclosure1 %all be subject to civil monet>y p5alties z det]m9$ by ! relevant ,f$]al ag5cy4 7,b7 ,9 addition to ! civil p5alties "u subp>agraph 7,a71 any kn[+ false or mislead+ disclosure made 9 connection ) a ,f$]al contract1 grant1 or f9ancial assi/ance application %all con/itute a violation ( section #ajja ( title #ah1 ,unit$ ,/ates ,code1 & may subject ! entity & its responsible (fic]s to crim9al prosecution !reund]4 7,c7 ,! ,,faa ,adm9i/rator may susp5d or revoke a production c]tificate held by any entity t kn[+ly fails to make or falsifies a disclosure requir$ "u p>agraph 7#a77;,a71 consi/5t ) ! proc$ures "u "p #ac ( title #ad1 ,code ( ,f$]al ,regulations4 7#d7 ,relation%ip to c]tification requirem5t ,! disclosure requirem5t "u ?is subsection is 9 addition to1 & %all n be con/ru$ to limit or sub/itute =1 ! annual c]tification requirem5t "u subsection 7d74 #aj4 ,def9itions ,9 ?is ,act1 unless o!rwise provid$3 7#a7 ,,cfius ,! t]m ,,cfius or ,committee means ! ,committee on ,=eign ,inve/m5t 9 ! ,unit$ ,/ates e/abli%$ "u section #gba7k7 ( ! ,def5se ,production ,act ( #aiej 7#ej ,u4,s4,c4 #defe7k774 7#b7 ,c\ntry ( conc]n ,! t]m c\ntry ( conc]n has ! mean+ giv5 ! t]m 9 section #hji ( ! ,def5se ,production ,act ( #aiej 7#ej ,u4,s4,c4 #dehi74 7#c7 ,cov]$ g5]al aviation entity ,! t]m cov]$ g5]al aviation entity means any ,unit$ ,/ates bus9ess t-- 7,a7 holds an ,,faa production c]tificate issu$ pursuant to "p #ba ( title #ad1 ,code ( ,f$]al ,regulations1 = ! manufacture ( aircraft eng9es1 propell]s1 or airframes int5d$ = use 9 ! ,unit$ ,/ates civil aviation fleet2 7,b7 designs1 manufactures1 or sells avionics or flight control sy/ems1 includ+ autopilot sy/ems1 glass cockpit displays1 or air-to-gr\nd data l9k sy/ems1 int5d$ prim>ily = g5]al aviation aircraft1 z t t]m is def9$ 9 section #djajb7;a77#ag7 ( title #di1 ,unit$ ,/ates ,code2 7,c7 is a type c]tificate hold] or production c]tificate hold] "u "p #ba ( title #ad1 ,code ( ,f$]al ,regulations1 = helicopt]s or light rotorcraft ) a maximum c]tificat$ take(f weight ( #ab1ejj p\nds or less2 or 7,d7 holds a c]tificate ( approval z an ,,faa-c]tificat$ pilot s*ool "u "p #ada ( title #ad1 ,code ( ,f$]al ,regulations1 or an aviation tra9+ c5t] "u "p #adb ( title #ad1 ,code ( ,f$]al ,regulations1 & is locat$ )9 #ej nautical miles ( a milit>y in/allation 7z su* t]m is def9$ 9 section #hjb4bbg ( title #ca1 ,code ( ,f$]al ,regulations74 7#d7 ,,faa ,! t]m ,,faa means ! ,f$]al ,aviation ,adm9i/ration4 7#e7 ,g5]al aviation ,! t]m g5]al aviation has ! mean+ giv5 ! t]m g5]al aviation aircraft 9 section #djajb7;a77#ag7 ( title #di1 ,unit$ ,/ates ,code4 7#f7 ,milit>y-civil fusion ,! t]m milit>y-civil fusion means ! /rategy ( ! ,p's ,republic ( ,*9a1 codifi$ 9 ! ,,prc's ,national ,intellig5ce ,law ( #bjag & relat$ policies1 t requires civilian entities1 includ+ private companies1 to support1 coop]ate )1 & /r5g!n ! milit>y1 def5se mobilization1 & intellig5ce app>atus ( ! ,,prc ^u dem&4 7#g7 ,,ns-,,cmic ,li/ ,! t]m ,,ns-,,cmic ,li/ means ! ,non-,,sdn ,*9ese ,milit>y-,indu/rial ,complex ,companies ,li/ ma9ta9$ by ! ,(fice ( ,=eign ,assets ,control ( ! ,dep>tm5t ( ! ,treasury pursuant to ,executive ,ord] #aciei 7#he ,f$4 ,reg4 #gcahe71 z am5d$1 or any successor li/4 7#h7 ,type c]tificate2 production c]tificate ,! t]ms type c]tificate & production c]tificate h ! mean+s giv5 ^? t]ms "u "p #ba ( title #ad1 ,code ( ,f$]al ,regulations4 #aa4 ,sev]ability ,if any provision ( ?is ,act1 or ! application ( any su* provision to any p]son or circum/ance1 is held to be uncon/itutional1 ! rema9d] ( ?is ,act1 & ! application ( ! rema9+ provisions to any p]son or circum/ance1 %all n be affect$ !reby4 #ab4 ,effective date ,except z o!rwise specifically provid$ 9 ?is ,act1 ?is ,act %all take effect on ! date ( its enactm5t4 ,! am5dm5ts made by sections #b1 #c1 & #d %all apply to transactions = :i* a def9itive agreem5t is ent]$ into on or aft] ! date ( enactm5t4 ,! review direct$ "u section #g %all apply to all previ\sly complet$ transactions1 reg>dless ( ! date ( completion4 ,! prohibition & clawback au?ority "u section #i7;a7 & 7b7 %all apply only to ,f$]al f9ancial assi/ance obligat$ or exp5d$ on or aft] ! date ( enactm5t2 no?+ 9 section #i %all be con/ru$ to impose liability1 require repaym5t1 or au?orize recov]y ) respect to any ,f$]al f9ancial assi/ance obligat$ or exp5d$ prior to ! date ( enactm5t1 except z may be available "u ! ,false ,claims ,act 7#ca ,u4,s4,c4 #cgbi et seq47 or o!r law 9 effect at ! "t su* assi/ance 0 provid$4