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).