Sec. 2. Limitation on certain rolling stock procurements
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Section 5323 of title 49, United States Code, is amended by adding at the end the following: Except as provided in paragraph (5), financial assistance made available under this chapter 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 public transportation if the manufacturer of the rolling stock— is incorporated in or has manufacturing facilities in the United States; and is owned or controlled by, is a subsidiary of, or is otherwise related legally or financially to a corporation based in a country that— 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; 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 priority foreign country under subsection (a)(2) of that section; and is subject to monitoring by the Trade Representative under section 306 of the Trade Act of 1974 ( 19 U.S.C. 2416 ).
For purposes of paragraph (1), the term otherwise related legally or financially does not include a minority relationship or investment. This subsection shall be applied in a manner consistent with the obligations of the United States under international agreements. Except as provided in paragraph (5), as a condition of financial assistance made available in a fiscal year under section 5337, a recipient that operates rail fixed guideway service shall certify in that fiscal year that the recipient will not award any contract or subcontract for the procurement of rail rolling stock for use in public transportation with a rail rolling stock manufacturer described in paragraph (1).
The certification required under this paragraph shall be in addition to any certification the Secretary establishes to ensure compliance with the requirements of paragraph (1). This subsection, including the certification requirement under paragraph (4), shall not apply to the award of a contract or subcontract made by a public transportation agency with a rail rolling stock manufacturer described in paragraph
(1)if the manufacturer and the public transportation agency have a contract for rail rolling stock that was executed before the date of enactment of this subsection. .
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