Title: Flags of Convenience Don't Fly Here Act
Policy area: Transportation and Public Works

Summary:
Flags of Convenience Don't Fly Here Act
This bill bars the Department of Transportation (DOT) from issuing a foreign air carrier permit or an exemption from certain air carrier certificate requirements to a person to provide foreign air transportation under the United States-European Union Air Transport Agreement of April, 2007, in a proceeding in which the applicability of Article 17 bis of such Agreement has been raised by an interested person, unless DOT:
In carrying out such air carrier certificate requirements, DOT shall consider preventing entry of flag of convenience carriers into U.S. markets as being in the public interest and consistent with public convenience and necessity for safety in air transportation and air commerce.
In formulating U.S. international air transportation policy, the Department of State and DOT shall develop a negotiating policy emphasizing the greatest degree of competition for a well-functioning air transportation system that eliminates specified discriminatory and unfair competitive practices faced by U.S. airlines in foreign air transportation, to include erosion of labor standards associated with flag of convenience carriers.
A "flag of convenience carrier" is defined as a foreign air carrier that is established in a country other than the home country of its majority owner or owners in order to avoid the home country's regulations.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2150 Introduced in House (IH)]

<DOC>






115th CONGRESS
  1st Session
                                H. R. 2150

  To ensure that permits issued by the Secretary of Transportation to 
    foreign air carriers under the United States-European Union Air 
  Transport Agreement of April 2007 do not undermine labor rights or 
                   standards, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 26, 2017

 Mr. DeFazio (for himself, Mr. LoBiondo, Mr. Larsen of Washington, and 
Mr. Ferguson) introduced the following bill; which was referred to the 
             Committee on Transportation and Infrastructure

_______________________________________________________________________

                                 A BILL


 
  To ensure that permits issued by the Secretary of Transportation to 
    foreign air carriers under the United States-European Union Air 
  Transport Agreement of April 2007 do not undermine labor rights or 
                   standards, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flags of Convenience Don't Fly Here 
Act''.

SEC. 2. FOREIGN AIR TRANSPORTATION UNDER UNITED STATES-EUROPEAN UNION 
              AIR TRANSPORT AGREEMENT.

    The Secretary of Transportation may not issue a permit under 
section 41302 of title 49, United States Code, or an exemption under 
section 40109 of such title, authorizing a person to provide foreign 
air transportation as a foreign air carrier under the United States-
European Union Air Transport Agreement of April 2007 (as amended) in a 
proceeding in which the applicability of Article 17 bis of such 
Agreement has been raised by an interested person, unless the 
Secretary--
            (1) finds that issuing the permit or exemption would be 
        consistent with the intent set forth in Article 17 bis of the 
        Agreement, that opportunities created by the Agreement do not 
        undermine labor standards or the labor-related rights and 
        principles contained in the laws of the respective parties to 
        the Agreement; and
            (2) imposes on the permit or exemption such conditions as 
        may be necessary to ensure that the person complies with the 
        intent of Article 17 bis.

SEC. 3. PUBLIC INTEREST TEST.

    Section 41302(2) of title 49, United States Code, is amended--
            (1) in subparagraph (A) by striking ``under an agreement 
        with the United States Government; or'' and inserting ``; 
        and''; and
            (2) in subparagraph (B) by striking ``the foreign air 
        transportation'' and inserting ``after considering the totality 
        of the circumstances, including the factors set forth in 
        section 40101(a), the foreign air transportation''.

SEC. 4. PUBLIC INTEREST REQUIREMENTS.

    (a) Policy.--Section 40101(a) of title 49, United States Code, is 
amended by adding at the end the following:
            ``(17) preventing entry into United States markets by flag 
        of convenience carriers.''.
    (b) International Air Transportation.--Section 40101(e)(9) of title 
49, United States Code, is amended--
            (1) in subparagraph (D) by striking ``and'' at the end;
            (2) in subparagraph (E) by striking the period at the end 
        and inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(F) erosion of labor standards associated with 
                flag of convenience carriers.''.
    (c) Flag of Convenience Carrier Defined.--Section 40102(a) of title 
49, United States Code, is amended--
            (1) by redesignating paragraphs (21) through (47) as 
        paragraphs (22) through (48), respectively; and
            (2) by inserting after paragraph (20) the following:
            ``(21) `flag of convenience carrier' means a foreign air 
        carrier that is established in a country other than the home 
        country of its majority owner or owners in order to avoid 
        regulations of the home country.''.
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