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SEC. 21. NONCONFORMITY WITH APPROVED TYPE DESIGN. 
Section 44704(a) of title 49, United States Code, is 
further amended by adding at the end the following: 
‘‘(6) NONCONFORMITY WITH APPROVED TYPE 
DESIGN.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (D), a holder of a production cer-
tificate for an aircraft may not present a non-
conforming 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 noncon-
forming aircraft. 
‘‘(C) PENALTY CONSIDERATIONS.—In de-
termining the amount of a civil penalty under 
subparagraph (B), the Administrator shall con-
sider— 
‘‘(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 
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violations, and the size of the business con-
cern. 
‘‘(D) REMEDIAL
ACTION.—The Adminis-
trator may permit a production certificate hold-
er to present a nonconforming aircraft to the 
Administrator for an airworthiness certificate 
if— 
‘‘(i) the Administrator determines the 
nonconformity, when compared to the con-
figuration approved as part of the type de-
sign, 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 cer-
tificate holder to alter the aircraft’s con-
figuration 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— 
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‘‘(I) prescribed by the Adminis-
trator; and 
‘‘(II) commensurate with the se-
verity of the nonconformity; 
‘‘(v) the production certificate holder 
informs a person who is to take delivery of 
the nonconforming aircraft of the non-
conformance 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 air-
craft until the production certificate hold-
er, to the Administrator’s satisfaction, con-
forms the aircraft to the approved type de-
sign of such aircraft. 
‘‘(E) NOTIFICATION AND PROPOSED REME-
DIAL ACTION.—A production certificate holder 
shall, within 5 days of determining that such 
production certificate holder delivered a noncon-
forming aircraft, notify the Administrator, the 
purchaser of the airplane, and (if the purchaser 
is a lessor) the intended operator of the air-
plane, if known. A notification under this clause 
shall describe— 
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‘‘(i) the nonconformity in detail; and 
‘‘(ii) the production certificate hold-
er’s initial proposal for actions necessary 
to eliminate the nonconformity. 
‘‘(F) 
NONCONFORMING
AIRCRAFT
DE-
FINED.—In this paragraph, the term ‘noncon-
forming aircraft’ means an aircraft that does 
not conform to the approved type design for 
such aircraft type.’’. 
SEC. 22. IMPLEMENTATION OF RECOMMENDATIONS. 
(a) IN GENERAL.—Not later than 1 year after the 
date of enactment of this Act, the Administrator shall sub-
mit a report to the congressional committees of jurisdic-
tion on the status of the Administration’s implementation 
of covered recommendations. 
(b) CONTENTS.—The report required under sub-
section (a) shall contain, at a minimum— 
(1) a list and description of all covered rec-
ommendations; 
(2) a determination of whether the Adminis-
trator concurs, concurs in part, or does not concur 
with each covered recommendation; 
(3) an implementation plan and schedule for all 
covered recommendations the Administrator concurs 
or concurs in part with; and 
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(4) for each covered recommendation with 
which the Administrator does not concur (in whole 
or in part), a detailed explanation as to why. 
(c) COVERED
RECOMMENDATIONS
DEFINED.—In 
this section, the term ‘‘covered recommendations’’ means 
recommendations made by the following entities in any re-
view initiated in response to the accident of Lion Air flight 
610 on October 29, 2018, or Ethiopian Airlines flight 302 
on March 10, 2019, that recommend Administration ac-
tion: 
(1) The National Transportation Safety Board. 
(2) The Joint Authorities Technical Review. 
(3) The inspector general of the Department of 
Transportation. 
(4) The Safety Oversight and Certification Ad-
visory Committee, or any special committee thereof. 
(5) Any other entity the Administrator may 
designate. 
SEC. 23. OVERSIGHT OF FAA COMPLIANCE PROGRAM. 
(a) IN GENERAL.—Not later than 180 days after the 
date of enactment of this Act, the Administrator shall es-
tablish an Executive Council within the Administration to 
oversee the use and effectiveness across program offices 
of the Administration’s Compliance Program, described in 
Order 8000.373A dated October 31, 2018. 
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(b) COMPLIANCE PROGRAM OVERSIGHT.—The Exec-
utive Council established under this section shall— 
(1) monitor, collect, and analyze data on the 
use of the Compliance Program across program of-
fices of the Administration, including data on en-
forcement actions and compliance actions pursued 
against regulated entities by such program offices; 
(2) conduct an evaluation of the Compliance 
Program, not less frequently than annually each cal-
endar year through 2023, to assess the functioning 
and effectiveness of such program in meeting the 
stated goals and purpose of the program; 
(3) provide reports to the Administrator con-
taining the results of any evaluation conducted 
under paragraph (2), including identifying in such 
report any nonconformities or deficiencies in the im-
plementation of the program and compliance of reg-
ulated entities with safety standards of the Adminis-
tration; 
(4) make recommendations to the Adminis-
trator on regulations, guidance, performance stand-
ards or metrics, or other controls that should be 
issued by the Administrator to improve the effective-
ness of the Compliance Program in meeting the stat-
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ed goals and purpose of the program and to ensure 
the highest levels of aviation safety; and 
(5) carry out any other oversight duties with re-
spect to implementation of the Compliance Program 
and assigned by the Administrator. 
(c) EXECUTIVE COUNCIL.— 
(1) EXECUTIVE
COUNCIL
MEMBERSHIP.—The 
Compliance Program Executive Council shall be 
comprised of representatives from each program of-
fice with regulatory responsibility as provided in 
Order 8000.373A. 
(2) CHAIRPERSON.—The Executive Council 
shall be chaired by a person, who shall be appointed 
by the Administrator and shall report directly to the 
Administrator. 
(3) INDEPENDENCE.—The Secretary of Trans-
portation, the Administrator, or any officer or em-
ployee of the Administration may not prevent or pro-
hibit the chair of the Executive Council from per-
forming the activities described in this section or 
from reporting to Congress on such activities. 
(4) DURATION.—The Executive Council shall 
terminate on October 1, 2023. 
(d) 
ANNUAL
BRIEFING.—Each 
calendar 
year 
through 2023, the chair of the Executive Council shall 
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provide a briefing to the congressional committees of juris-
diction on the effectiveness of the Administration’s Com-
pliance Program in meeting the stated goals and purpose 
of the program and the activities of the office described 
in subsection (b), including any reports and recommenda-
tions made by the office during the preceding calendar 
year. 
SEC. 24. SETTLEMENT AGREEMENT. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Administrator should fully exercise all 
rights and pursue all remedies available to the Adminis-
trator under any settlement agreement between the Ad-
ministration and the holder of a type certificate and pro-
duction certificate for transport airplanes executed on De-
cember 18, 2015, including a demand for full payment of 
any applicable civil penalties deferred under such agree-
ment, if the Administrator concludes that such holder has 
not fully performed all obligations incurred under such 
agreement. 
(b) CONGRESSIONAL
BRIEFING.—Not later than 
February 1, 2021, and every 6 months thereafter until 
a certificate holder described in subsection (a) has fully 
performed all obligations incurred by such certificate hold-
er under such settlement agreement, the Administrator 
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shall brief the congressional committees of jurisdiction on 
action taken consistent with subsection (a). 
SEC. 25. HUMAN FACTORS. 
(a) AIRCRAFT CERTIFICATION PROCESS.— 
(1) EVALUATION.—Not later than 18 months 
after the date of enactment of this Act, the Adminis-
trator (acting through the Associate Administrator 
for Aviation Safety of the Administration) shall— 
(A) conduct an evaluation of the develop-
ment of tools and methods to support the inte-
gration of human factors assessment and sys-
tem safety assessments of human interaction 
with flight deck and flight control systems for 
transport airplanes into the aircraft certifi-
cation process under section 44704 of title 49, 
United States Code; and 
(B) develop a framework to better inte-
grate human factors throughout such aircraft 
certification process with the objective of im-
proving safety by designing systems and train-
ing pilots in a manner that accounts for con-
temporary knowledge to reduce the possibility 
of an accident resulting in whole or in part 
from the pilot’s interaction with the aircraft. 
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(2) REPORT TO CONGRESS.—Not later than 60 
days after the completion of the evaluation required 
under paragraph (1), the Administrator shall submit 
to Congress a report detailing the findings of such 
report and a plan for implementation based on such 
findings of such report. 
(3) IMPLEMENTATION.—Upon submission of 
the report required under paragraph (2), the Admin-
istrator shall implement the findings of such evalua-
tion. 
(b) HUMAN FACTORS EDUCATION PROGRAM.— 
(1) IN GENERAL.—The Administrator shall de-
velop a human factors education program that ad-
dresses the effects of modern flight deck systems, in-
cluding automated systems, on human performance 
for transport airplanes and the approaches for better 
integration of human factors in aircraft design and 
certification. 
(2) TARGET
AUDIENCE.—The human factors 
education program shall be integrated into the train-
ing protocol in existence as of the date of the enact-
ment of this Act such that such program is routinely 
administered to the following: 
(A) Appropriate employees within the 
Flight Standards Service. 
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(B) Appropriate employees within the Air-
craft Certification Service. 
(C) Other employees or authorized rep-
resentatives determined to be necessary by the 
Administrator. 
(c) TRANSPORT AIRPLANE MANUFACTURER INFOR-
MATION SHARING.—The Administrator shall— 
(1) require each transport airplane manufac-
turer to provide the Administrator with the informa-
tion or findings necessary for flight crew to be 
trained on flight deck systems; 
(2) ensure the information or findings under 
paragraph (1) adequately includes consideration of 
human factors; and 
(3) ensure that each transport airplane manu-
facturer identifies any technical basis, justification 
or rationale for the information and findings under 
paragraph (1). 
SEC. 26. TECHNICAL CORRECTIONS. 
Section 46301 of title 49, United States Code, is 
amended— 
(1) in subsection (a)(1)(A) by striking ‘‘(except 
sections 44717 and 44719–44723)’’ and inserting 
‘‘(except sections 44704(a)(6), 44704(e)(4), 44717, 
and 44719–44723)’’; 
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(2) in subsection (a)(5)(A) by striking ‘‘(except 
sections 44717–44723)’’ and inserting ‘‘(except sec-
tions 
44704(a)(6), 
44704(e)(4), 
and 
44717– 
44723)’’; 
(3) in subsection (d)(2) by striking ‘‘(except 
sections 44717 and 44719–44723)’’ and inserting 
‘‘(except sections 44704(a)(6), 44704(e)(4), 44717, 
and 44719–44723)’’; and 
(4) in subsection (f)(1)(A)(i) by striking ‘‘(ex-
cept sections 44717 and 44719–44723)’’ and insert-
ing ‘‘(except sections 44704(a)(6), 44704(e)(4), 
44717, and 44719–44723)’’. 
SEC. 27. DEFINITIONS. 
In this Act: 
(1) ADMINISTRATION; FAA.—The terms ‘‘Ad-
ministration’’ and ‘‘FAA’’ mean the Federal Avia-
tion Administration. 
(2) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the FAA. 
(3) ORGANIZATION
DESIGNATION
AUTHORIZA-
TION.—The term ‘‘organization designation author-
ization’’ has the same meaning given such term in 
section 44736 of title 49, United States Code. 
(4) CONGRESSIONAL COMMITTEES OF JURISDIC-
TION.—The term ‘‘congressional committees of juris-
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diction’’ means the Committee on Transportation 
and Infrastructure of the House of Representatives 
and the Committee on Commerce, Science, and 
Transportation of the Senate. 
(5) HUMAN FACTORS.—The term ‘‘human fac-
tors’’ means a multidisciplinary set of principles de-
veloped to holistically explain and predict pilot be-
havior in relation to the management of the oper-
ation of an aircraft, including the pilot’s manage-
ment of aircraft systems and response to systems 
failures and non-normal conditions. 
(6) TRANSPORT AIRPLANE.—The term ‘‘trans-
port 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 de-
rivative of such an airplane. 
(7) TYPE CERTIFICATE.—The term ‘‘type cer-
tificate’’— 
(A) means a type certificate issued pursu-
ant to section 44704(a) of title 49, United 
States Code, or an amendment to such certifi-
cate; and 
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(B) does not include a supplemental type 
certificate issued under section 44704(b) of 
such section. 
Passed the House of Representatives November 17, 
2020. 
Attest: 
CHERYL L. JOHNSON, 
Clerk. 
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