H. R. 1000—76
‘‘(f ) WAIVER.—The Administrator may waive revocation of a
certificate under subsection (b) if—
‘‘(1) a law enforcement official of the United States Govern-
ment requests a waiver; and
‘‘(2) the waiver will facilitate law enforcement efforts.
‘‘(g) AMENDMENT OF CERTIFICATE.—If the holder of a certificate
issued under this chapter is other than an individual and the
Administrator finds that—
‘‘(1) an individual who had a controlling or ownership
interest in the holder committed a violation of a law for the
violation of which a certificate may be revoked under this
section or knowingly, and with intent to defraud, carried out
or facilitated an activity punishable under such a law; and
‘‘(2) the holder satisfies the requirements for the certificate
without regard to that individual,
then the Administrator may amend the certificate to impose a
limitation that the certificate will not be valid if that individual
has a controlling or ownership interest in the holder. A decision
by the Administrator under this subsection is not reviewable by
the Board.’’.
(2) CONFORMING
AMENDMENT.—The analysis for such
chapter is further amended by adding at the end the following:
‘‘44726. Denial and revocation of certificate for counterfeit parts violations.’’.
(b) PROHIBITION ON EMPLOYMENT.—Section 44711 is amended
by adding at the end the following:
‘‘(c) PROHIBITION ON EMPLOYMENT OF CONVICTED COUNTERFEIT
PART TRAFFICKERS.—No person subject to this chapter may know-
ingly employ anyone to perform a function related to the procure-
ment, sale, production, or repair of a part or material, or the
installation of a part into a civil aircraft, who has been convicted
in a court of law of a violation of any Federal law relating to
the installation, production, repair, or sale of a counterfeit or
fraudulently-represented aviation part or material.’’.
SEC. 506. PREVENTION OF FRAUDS INVOLVING AIRCRAFT OR SPACE
VEHICLE PARTS IN INTERSTATE OR FOREIGN COM-
MERCE.
(a) SHORT TITLE.—This section may be cited as the ‘‘Aircraft
Safety Act of 2000’’.
(b) DEFINITIONS.—Section 31 of title 18, United States Code,
is amended by striking all after the section heading and inserting
the following:
‘‘(a) DEFINITIONS.—In this chapter, the following definitions
apply:
‘‘(1) AIRCRAFT.—The term ‘aircraft’ means a civil, military,
or public contrivance invented, used, or designed to navigate,
fly, or travel in the air.
‘‘(2) AVIATION QUALITY.—The term ‘aviation quality’, with
respect to a part of an aircraft or space vehicle, means the
quality of having been manufactured, constructed, produced,
maintained, repaired, overhauled, rebuilt, reconditioned, or
restored in conformity with applicable standards specified by
law (including applicable regulations).
‘‘(3) DESTRUCTIVE SUBSTANCE.—The term ‘destructive sub-
stance’ means an explosive substance, flammable material,
infernal machine, or other chemical, mechanical, or radioactive
H. R. 1000—77
device or matter of a combustible, contaminative, corrosive,
or explosive nature.
‘‘(4) IN FLIGHT.—The term ‘in flight’ means—
‘‘(A) any time from the moment at which all the
external doors of an aircraft are closed following embar-
kation until the moment when any such door is opened
for disembarkation; and
‘‘(B) in the case of a forced landing, until competent
authorities take over the responsibility for the aircraft and
the persons and property on board.
‘‘(5) IN SERVICE.—The term ‘in service’ means—
‘‘(A) any time from the beginning of preflight prepara-
tion of an aircraft by ground personnel or by the crew
for a specific flight until 24 hours after any landing; and
‘‘(B) in any event includes the entire period during
which the aircraft is in flight.
‘‘(6) MOTOR
VEHICLE.—The term ‘motor vehicle’ means
every description of carriage or other contrivance propelled
or drawn by mechanical power and used for commercial pur-
poses on the highways in the transportation of passengers,
passengers and property, or property or cargo.
‘‘(7) PART.—The term ‘part’ means a frame, assembly,
component, appliance, engine, propeller, material, part, spare
part, piece, section, or related integral or auxiliary equipment.
‘‘(8) SPACE
VEHICLE.—The term ‘space vehicle’ means a
man-made device, either manned or unmanned, designed for
operation beyond the Earth’s atmosphere.
‘‘(9) STATE.—The term ‘State’ means a State of the United
States, the District of Columbia, and any commonwealth, terri-
tory, or possession of the United States.
‘‘(10) USED FOR COMMERCIAL PURPOSES.—The term ‘used
for commercial purposes’ means the carriage of persons or
property for any fare, fee, rate, charge or other consideration,
or directly or indirectly in connection with any business, or
other undertaking intended for profit.
‘‘(b) TERMS DEFINED IN OTHER LAW.—In this chapter, the terms
‘aircraft engine’, ‘air navigation facility’, ‘appliance’, ‘civil aircraft’,
‘foreign air commerce’, ‘interstate air commerce’, ‘landing area’,
‘overseas air commerce’, ‘propeller’, ‘spare part’, and ‘special aircraft
jurisdiction of the United States’ have the meanings given those
terms in sections 40102(a) and 46501 of title 49.’’.
(c) FRAUD.—
(1) IN GENERAL.—Chapter 2 of title 18, United States Code,
is amended by adding at the end the following:
‘‘§ 38. Fraud involving aircraft or space vehicle parts in inter-
state or foreign commerce
‘‘(a) OFFENSES.—Whoever, in or affecting interstate or foreign
commerce, knowingly and with the intent to defraud—
‘‘(1)(A) falsifies or conceals a material fact concerning any
aircraft or space vehicle part;
‘‘(B) makes any materially fraudulent representation con-
cerning any aircraft or space vehicle part; or
‘‘(C) makes or uses any materially false writing, entry,
certification, document, record, data plate, label, or electronic
communication concerning any aircraft or space vehicle part;
H. R. 1000—78
‘‘(2) exports from or imports or introduces into the United
States, sells, trades, installs on or in any aircraft or space
vehicle any aircraft or space vehicle part using or by means
of a fraudulent representation, document, record, certification,
depiction, data plate, label, or electronic communication; or
‘‘(3) attempts or conspires to commit an offense described
in paragraph (1) or (2),
shall be punished as provided in subsection (b).
‘‘(b) PENALTIES.—The punishment for an offense under sub-
section (a) is as follows:
‘‘(1) AVIATION QUALITY.—If the offense relates to the avia-
tion quality of a part and the part is installed in an aircraft
or space vehicle, a fine of not more than $500,000, imprison-
ment for not more than 15 years, or both.
‘‘(2) FAILURE TO OPERATE AS REPRESENTED.—If, by reason
of the failure of the part to operate as represented, the part
to which the offense is related is the proximate cause of a
malfunction or failure that results in serious bodily injury
(as defined in section 1365), a fine of not more than $1,000,000,
imprisonment for not more than 20 years, or both.
‘‘(3) FAILURE RESULTING IN DEATH.—If, by reason of the
failure of the part to operate as represented, the part to which
the offense is related is the proximate cause of a malfunction
or failure that results in the death of any person, a fine of
not more than $1,000,000, imprisonment for any term of years
or life, or both.
‘‘(4) OTHER
CIRCUMSTANCES.—In the case of an offense
under subsection (a) not described in paragraph (1), (2), or
(3) of this subsection, a fine under this title, imprisonment
for not more than 10 years, or both.
‘‘(5) ORGANIZATIONS.—If the offense is committed by an
organization, a fine of not more than—
‘‘(A) $10,000,000 in the case of an offense described
in paragraph (1) or (4); and
‘‘(B) $20,000,000 in the case of an offense described
in paragraph (2) or (3).
‘‘(c) CIVIL REMEDIES.—
‘‘(1) IN GENERAL.—The district courts of the United States
shall have jurisdiction to prevent and restrain violations of
this section by issuing appropriate orders, including—
‘‘(A) ordering a person (convicted of an offense under
this section) to divest any interest, direct or indirect, in
any enterprise used to commit or facilitate the commission
of the offense, or to destroy, or to mutilate and sell as
scrap, aircraft material or part inventories or stocks;
‘‘(B) imposing reasonable restrictions on the future
activities or investments of any such person, including
prohibiting engagement in the same type of endeavor as
used to commit the offense; and
‘‘(C) ordering the dissolution or reorganization of any
enterprise knowingly used to commit or facilitate the
commission of an offense under this section making due
provisions for the rights and interests of innocent persons.
‘‘(2) RESTRAINING ORDERS AND PROHIBITION.—Pending final
determination of a proceeding brought under this section, the
court may enter such restraining orders or prohibitions, or
H. R. 1000—79
take such other actions (including the acceptance of satisfactory
performance bonds) as the court deems proper.
‘‘(3) ESTOPPEL.—A final judgment rendered in favor of the
United States in any criminal proceeding brought under this
section shall stop the defendant from denying the essential
allegations of the criminal offense in any subsequent civil pro-
ceeding brought by the United States.
‘‘(d) CRIMINAL FORFEITURE.—
‘‘(1) IN GENERAL.—The court, in imposing sentence on any
person convicted of an offense under this section, shall order,
in addition to any other sentence and irrespective of any provi-
sion of State law, that the person forfeit to the United States—
‘‘(A) any property constituting, or derived from, any
proceeds that the person obtained, directly or indirectly,
as a result of the offense; and
‘‘(B) any property used, or intended to be used in
any manner, to commit or facilitate the commission of
the offense, if the court in its discretion so determines,
taking into consideration the nature, scope, and proportion-
ality of the use of the property on the offense.
‘‘(2) APPLICATION OF OTHER LAW.—The forfeiture of property
under this section, including any seizure and disposition of
the property, and any proceedings relating to the property,
shall be governed by section 413 of the Comprehensive Drug
Abuse and Prevention Act of 1970 (21 U.S.C. 853) (not including
subsection (d) of that section).
‘‘(e) CONSTRUCTION WITH OTHER LAW.—This section does not
preempt or displace any other remedy, civil or criminal, provided
by Federal or State law for the fraudulent importation, sale, trade,
installation, or introduction into commerce of an aircraft or space
vehicle part.
‘‘(f ) TERRITORIAL SCOPE.—This section also applies to conduct
occurring outside the United States if—
‘‘(1) the offender is a natural person who is a citizen or
permanent resident alien of the United States, or an organiza-
tion organized under the laws of the United States or political
subdivision thereof;
‘‘(2) the aircraft or spacecraft part as to which the violation
relates was installed in an aircraft or space vehicle owned
or operated at the time of the offense by a citizen or permanent
resident alien of the United States, or by an organization
thereof; or
‘‘(3) an act in furtherance of the offense was committed
in the United States.’’.
(2) CONFORMING AMENDMENTS.—
(A) CHAPTER
ANALYSIS.—The analysis for chapter 2
of title 18, United States Code, is amended by adding
at the end the following:
‘‘38. Fraud involving aircraft or space vehicle parts in interstate or foreign com-
merce.’’.
(B) WIRE AND ELECTRONIC COMMUNICATIONS.—Section
2516(1)(c) of title 18, United States Code, is amended by
inserting ‘‘section 38 (relating to aircraft parts fraud),’’
after ‘‘section 32 (relating to destruction of aircraft or air-
craft facilities),’’.