LIMITATION ON CERTAIN ROLLING STOCK PROCUREMENTS.

SEC. 768. LIMITATION ON CERTAIN ROLLING STOCK PROCUREMENTS. (a) In General.—Section 50101 of title 49, United States Code, is amended— (1) by striking “(except section 47127)” each place it appears; and (2) by adding at the end the following: “(d) Limitation on Certain Rolling Stock Procurements.— “(1) In general.—Financial assistance made available under the provisions described in subsection (a) shall not be used in awarding a contract or subcontract to an entity on or after the date of enactment of this subsection for the procurement of rolling stock for use in an airport-related project if the manufacturer of the rolling stock— “(A) is incorporated in or has manufacturing facilities in the United States; and “(B) is owned or controlled by, is a subsidiary of, or is otherwise related legally or financially to a corporation based in a country that— “(i) is identified as a nonmarket economy country (as defined in section 771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18))) as of the date of enactment of this subsection; “(ii) was identified by the United States Trade Representative in the most recent report required by section 182 of the Trade Act of 1974 (19 U.S.C. 2242) as a foreign country included on the priority watch list defined in subsection (g)(3) of that section; and “(iii) is subject to monitoring by the Trade Representative under section 306 of the Trade Act of 1974 (19 U.S.C. 2416). “(2) Exception.— “(A) In general.—For purposes of paragraph (1), the term ‘otherwise related legally or financially’ does not include— “(i) a minority relationship or investment; or “(ii) relationship with or investment in a subsidiary, joint venture, or other entity based in a country described in paragraph (1)(B) that does not export rolling stock or components of rolling stock for use in the United States. “(B) Corporation based in people’s republic of china.—Notwithstanding subparagraph (A)(i), for purposes of paragraph (1), the term ‘otherwise related legally or financially’ includes a minority relationship or investment if the relationship or investment involves a corporation based in the People’s Republic of China. “(3) International agreements.—This subsection shall be applied in a manner consistent with the obligations of the United States under international agreements. “(4) Waiver.— “(A) In general.—The Secretary may waive the limitation described in paragraph (1) using the criteria described in subsection (b). “(B) Notification.—Not later than 10 days after issuing a waiver under subparagraph (A), the Secretary shall notify the Committee on Transportation and Infrastructure of the House of Representatives and the Committee on Commerce, Science, and Transportation of the Senate.” . (b) Conforming Amendments.— (1) Restricting contract awards because of discrimination against united states goods or services.—Section 50102 of title 49, United States Code, is amended by striking “(except section 47127)”. (2) Restriction on airport projects using products or services of foreign countries denying fair market opportunities.—Section 50104(b) of title 49, United States Code, is amended by striking “(except section 47127)”. (3) Fraudulent use of made in america label.—Section 50105 of title 49, United States Code, is amended by striking “(except section 47127)”.