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.