What This Bill Does
This bill requires disclosure of who truly owns aircraft that get registered with the Federal Aviation Administration (FAA). Before approving an aircraft registration, the FAA must collect detailed ownership information from the organization seeking registration. The bill specifically targets foreign persons who own or control aircraft.
Who It Affects
- Entities (companies, trusts, associations, partnerships, corporations, or other organizations) applying to register aircraft with the FAA
- Foreign persons who own or control aircraft through these entities
- The Federal Aviation Administration (which enforces the requirement)
Key Provisions
- Entities must identify each beneficial owner (a person who controls or benefits from the organization) by name, address, identification number or passport information, and nationality (Sec. 2(a)(1))
- Entities with multiple owners must explain how each owner relates to the others and show who controls what (Sec. 2(a)(2))
- For trusts and associations, entities must reveal the chain of control showing the owner, trustee, and beneficiary (Sec. 2(a)(3))
- Entities must disclose any beneficial owner that is a foreign person to the FAA (Sec. 2(a)(4))
- Entities must provide this information when applying for aircraft registration and update it within 60 days if anything changes (Sec. 2(b))
What Changes
Aircraft registration applications will now require detailed beneficial ownership disclosure. Organizations must identify who truly owns or controls the aircraft, not just list a company name. If ownership changes, the entity must notify the FAA within 60 days.
Important Definitions
- **Beneficial owner**: A person who directly or indirectly controls an organization through ownership, voting rights, or agreements, or who receives substantial economic benefits from it. Exceptions include minor children, employees, trustees acting for someone else, people with only inheritance rights, and creditors.
- **Covered entity**: Any person, trust, association, partnership, corporation, or other public or private organization.
- **Foreign person**: An individual who is not a U.S. citizen and is not a permanent resident lawfully admitted to the United States.
- **United States person**: A natural person who is a U.S. citizen or owes permanent allegiance to the United States.
Effective Date
Not specified in bill text
I
118TH CONGRESS
1ST SESSION H. R. 2563
To require the disclosure of beneficial ownership by a foreign person of
aircraft registration, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 10, 2023
Mr. LYNCH introduced the following bill; which was referred to the Committee
on Transportation and Infrastructure
A BILL
To require the disclosure of beneficial ownership by a foreign
person of aircraft registration, and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Aircraft Ownership
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Transparency Act of 2023’’.
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SEC. 2. CERTIFICATION OF AIRCRAFT REGISTRATION.
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(a) IN GENERAL.—Before approving a certificate of
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registration issued under section 44103 of title 49, United
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States Code, with a covered entity, the Administrator of
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•HR 2563 IH
the Federal Aviation Administration shall require the cov-
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ered entity to—
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(1) identify each beneficial owner of the covered
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entity by—
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(A) name;
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(B) current residential or business street
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address;
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(C) a unique identifying number from a
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nonexpired passport issued by the United
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States or a nonexpired drivers license issued by
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a State or if neither is available, a legible and
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credible copy of the pages of a nonexpired pass-
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port issued by the government of a foreign
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country bearing a photograph, date of birth,
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and unique identifying information for the per-
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son;
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(D) nationality; and
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(E) the make, model, and serial number of
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the aircraft to be registered;
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(2) in the case of a covered entity that is owned
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or controlled by more than one entity, identify how
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each entity relates to every other entity, including
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the extent to which each entity holds an ownership
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interest in or exercises control over another entity,
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and the relationship of each such entity with the
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•HR 2563 IH
beneficial owners who are natural persons; and in
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addition to each beneficial owner, identify each trust
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grantor, trustee, trust protector, and beneficiary
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owner of the covered entity that is a foreign person;
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(3) in the case of a trust or association, identify
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the chain of control that includes the owner, trustee,
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and beneficiary; and
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(4) disclose to the Administrator any beneficial
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owner of the covered entity that is a foreign person.
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(b) TIMING.—
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(1) IN GENERAL.—The Administrator shall re-
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quire a covered entity to provide the information de-
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scribed in subsections (a)(1) and (a)(2) when sub-
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mitting an application for aircraft certification.
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(2) UPDATES.—The Administrator shall require
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a covered entity to update a submission of the infor-
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mation described in subsections (a)(1) and (a)(2)
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not later than 60 days after the date of any change
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in—
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(A) the list of beneficial owners of the cov-
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ered entity; or
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(B) the information required to be pro-
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vided relating to each such beneficial owner.
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(c) DEFINITIONS.—In this section, the following defi-
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nitions apply:
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(1) BENEFICIAL OWNER.—
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(A) IN GENERAL.—Except as provided in
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subparagraph (B), the term ‘‘beneficial owner’’
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means, with respect to a covered entity, each
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natural person who, directly or indirectly—
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(i) exercises control over the covered
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entity through ownership interests, voting
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rights, agreements, or otherwise; or
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(ii) has an interest in or receives sub-
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stantial economic benefits from the assets
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of the covered entity.
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(B) EXCEPTIONS.—The term ‘‘beneficial
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owner’’ does not include, with respect to a cov-
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ered entity—
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(i) a minor child;
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(ii) a person acting as a trustee,
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nominee, intermediary, custodian, or agent
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on behalf of another person;
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(iii) a person acting solely as an em-
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ployee of the covered entity and whose con-
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trol over or economic benefits from the
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covered entity derives solely from the em-
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ployment status of the person;
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(iv) a person whose only interest in
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the covered entity is through a right of in-
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•HR 2563 IH
heritance, unless the person also meets the
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requirements of subparagraph (A); or
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(v) a creditor of the covered entity,
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unless the creditor also meets the require-
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ments of subparagraph (A).
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(C) ANTI-ABUSE
RULE.—The exceptions
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under subparagraph (B) shall not apply if used
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for the purpose of evading, circumventing, or
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abusing the requirements of this section.
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(2) COVERED ENTITY.—The term ‘‘covered en-
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tity’’ means a person, trust, association, copartner-
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ship, corporation, or other public or private entity.
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(3) FOREIGN PERSON.—The term ‘‘foreign per-
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son’’ means an individual who is not a United States
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person or an alien lawfully admitted for permanent
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residence into the United States.
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(4)
UNITED
STATES
PERSON.—The
term
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‘‘United States person’’ means a natural person who
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is a citizen of the United States or who owes perma-
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nent allegiance to the United States.
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Æ
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