REPUBLIC OF THE PHILIPPINES
HOUSE OF REPESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

8700

House Bill N

Introduced by Rep. Edgar Mary S. Sarmiento

AN ACT
STRENGTHENING THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES,
AMENDING FOR THE PURPOSE REPUBLIC ACT 9497, OTHERWISE KNOWN
CIVIL AVIATION AUTHORITY ACT OF 2008

EXPLANATORY NOTE

The Civil Aviation Authority of the Philippines (CAAP) was created in 2008 by virtue
of Republic Act No. 9497. It is part of the government’s civil aviation reform program at that
time. CAAP is an independent regulatory body with quasi-judicial and quasi-legislative powers
tasked to provide safe and efficient air transport and regulatory services in the country.

More than a decade from its creation, amendments to the law are needed to ensure that
our aviation industry remains competitive. CAAP should have the capability to respond to
global changes and challenges. The significant amendments in the law are outlined in this bill:

1. Increasing the term of the Director General (DG) to seven years

Increasing the term of the Director General (DG) shall insulate the Director General
from changes due to transfer of administration.

2. Exemption of CAAP from the Salary Standardization Law (SSL)

Exemption from the SSL will allow the CAAP to hire qualified individuals with highly-
technical skills.

3. Enhanced fiscal autonomy

In view of the foregoing, passage of this bill is earnestly sought.

'
EDGAR MARY S. SARMIENTO

Ze ve? RESEN

ke RECEIVED ©
3 DATE:,FE8 15 20%,


Soewmiaauaone

i
12
13
14
15
16
17
18
19
20
21

24
25
26
27
28
29

REPUBLIC OF THE PHILIPPINES
HOUSE OF REPESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
‘Second Regular Session

House Bill No__ 8700

Introduced by Rep. Edgar Mary S. Sarmiento

AN ACT
STRENGTHENING THE CIVIL AVIATION AUTHORITY OF THE PHILIPPINES,
AMENDING FOR THE PURPOSE REPUBLIC ACT 9497, OTHERWISE KNOWN
CIVIL AVIATION AUTHORITY ACT OF 2008

Be it enacted by the House of Representatives and the Senate of the Philippines in Congress
assembled:

SECTION 1. Scction 2 of Republic Act No. 9497, otherwise known as the Civil Aviation
Authority Act of 2008, is hereby amended to read as follows:

“SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to provide
safe and efficient air transport and regulatory services in the Philippines by providing
for the creation of a civil aviation authority with jurisdiction over the restructuring of
the civil aviation system, the promotion, development and regulation of the technical,
operational, safety, and aviation security functions under the civil aviation authority IN
FURTHERANCE OF THE OBLIGATIONS OF THE PHILIPPINES TO THE
INTERNATIONAL COMMUNITY AS CONTRACTING STATE TO THE
CHICAGO CONVENTION. THE AUTHORITY SHALL COORDINATE WITH
OTHER GOVERNMENT AGENCIES IN ADVANCING AVIATION
SECURITY IN THE PHILIPPINES.

TOWARDS THIS END, THE GOVERNMENT SHALL EXTEND ALL MEANS
AND MECHANISMS NECESSARY FOR THE AUTHORITY TO FULFILL ITS
VITAL TASK OF PROMOTING. AND ENSURING SAFE AND EFFICIENT
AIR TRANSPORT.

IN VIEW OF THE CRUCIAL ROLE, AND THE NATURE, POWERS AND
FUNCTIONS OF THE AUTHORITY, AS A GOVERNMENT
INSTRUMENTALITY WITH CORPORATE POWERS, IT SHALL ENJOY
FISCAL AND ADMINISTRATIVE AUTONOMY.”

SEC. 2. Section 4 of the same Act is hereby amended to read as follows:
“SEC. 4. Creation of the Authority. - There is hereby created an independent regulatory

body with quasi-judicial and quasi-legislative powers and possessing corporate
attributes to be known as the Civil Aviation Authority of the Philippines (CAAP),



Sexeraauawne

i
12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

45
46
47
48
49
50

hereinafter referred to as the "Authority" attached to the Department of Transportation
(DOT!) SOLELY for the purpose of policy coordination. For this purpose, the existing
Air Transportation Office created under the provisions of Republic Act No. 776, as
amended, is hereby abolished.

THE AUTHORITY SHALL BE EXEMPTED FROM THE PROVISIONS OF
REPUBLIC ACT NO. 10149, OTHERWISE KNOWN AS THE GOCC
GOVERNANCE ACT OF 2011 AND FROM THE JURISDICTION OF THE
GOVERNANCE COMMISSION FOR GOVERNMENT-OWNED OR
CONTROLLED CORPORATION; PROVIDED, HOWEVER, THAT THE
AUTHORITY SHALL BE REQUIRED TO COMPLY WITH THE
DISCLOSURE REQUIREMENTS IN SECTION 25 CHAPTER V OF RA 10140
AND MAY BE SUBJECT TO THE SPECIAL AUDIT UPON THE DIRECTIVE
OF THE COMMISSION ON AUDIT; PROVIDED, FURTHER, THAT NO
PERFORMANCE INCENTIVE, BONUS, ANY KIND OF ADDITIONAL
BENEFIT NOT PRESCRIBED UNDER THE LAW SHALL BE GRANTED
UNLESS. THE AUTHORITY HAS FULLY PAID ALL TAXES FOR WHICH IT
IS LIABLE.

1x,

(a] { Establishment of Authority Headed by a ] APPOINTMENT AND TERM OF
OFFICE Director General - The Authority shall be headed by a Director General of
Civil Aviation, referred to in this Act as the "Director General," who [ shall be
appointed by the President of the Philippines and ] shall be responsible for all NON-
ECONOMIC ASPECTS OF civil aviation in the Philippines and the administration
of this Act. NOTWITHSTANDING THE PROVISIONS OF REPUBLIC ACT
10149, {F]the Director General shall be appointed BY THE PRESIDENT OF THE
PHILIPPINES based on the qualifications herein provided and shall have a [ tenure ]
‘TERM of office for a period of [ four (4) ] SEVEN (7) years. His appointment may be
extended for another non-extendible term of [ four (4) | SEVEN (7) years and shall
only be removed for cause in accordance with the rules and regulations prescribed by
the Civil Service Commission. IN CASE THE DIRECTOR GENERAL FAILS TO
COMPLETE HIS TERM, HIS SUCCESSOR SHALL ONLY SERVE FOR THE
UNEXPIRED PORTION OF THE TERM OF HIS PREDECESSOR. NO
DIRECTOR GENERAL CAN SERVE IN OFFICE FOR MORE THAN [EIGHT
(8)] FOURTEEN (14) YEARS.

THE PRESIDENT OF THE PHILIPPINES SHALL APPOINT THE
DIRECTOR GENERAL FROM A SHORTLIST OF THREE NOMINEES
PREPARED BY THE BOARD OF DIRECTORS CONSTITUTED AS A
SEARCH COMMITTEE COMPOSED OF FIVE MEMBERS THEREOF WHO
SHALL RECEIVE AND EVALUATE NOMINATIONS. NO INCUMBENT
DIRECTOR GENERAL SHALL BE A MEMBER OF THE SEARCH
COMMITTEE.

2x"

SEC. 3. Section 5 of the same Act is hereby amended to read as follows:


Seawrauavne

il
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28,
29
30
31
32
33
34
35
36
37

38
39
40

41
42
43

45
46
47
48

“SEC. 5. Composition of the Board Members. — The corporate powers of the
Authority shall be vested in a board, which is composed of [ seven (7) ] NINE (9)
members:

(a) The Secretary of the Department of Transportation and Communications shall act
as chairman ex officio;

(b) The Director General of Civil Aviation (DGCA) shall automatically be the vice
chairman of the Board;

(©) The Secretary of Finance;

(d) The Secretary of Foreign Affairs;

(©) The Secretary of Justice;

() The Secretary of the Interior and Local Government; [ and ]

(g) The Secretary of the Department of Labor and Employment;

(I)THE SECRETARY OF THE DEPARTMENT OF TOURISM (PER
SECTION 96 OF REPUBLIC ACT NO. 9593); AND

(). THE SECRETARY OF THE DEPARTMENT OF NATIONAL DEFENSE.

The Directors listed under subsections (a) to [(g)] (D shall be ex officio members of the
Board of Directors: PROVIDED THAT, IN THE ABSENCE OF THE
CHAIRMAN, HE SHALL DESIGNATE AN UNDERSECRETARY OF THE
DOTC TO ACT IN HIS BEHALF AS CHAIRMAN; PROVIDED FURTHER,
THAT THE DIRECTOR GENERAL, IN HIS ABSENCE, SHALL DESIGNATE
HIS REPRESENTATIVE FROM THE AUTHORITY TO ACT AS VICE
CHAIRMAN: Provided, That, in the absence of the Director appointed in subsections
(©) to [(g)] (, the Director concerned shall designate with full power and authority, in
writing, an officer in his department or office to act on his OR HER behalf as a
Director.”

SEC. 4. Section 9 of the same Act is hereby amended to read as follows:

“SEC. 9. Qualifications of Director General. - No person shall be appointed [ or
designated J as the Director General unless he is a Filipino citizen, at least thirty-five
(35) years of age, of good moral character, unquestionable integrity, recognized
competence and a degree holder with at least five (5) years supervisory or management
experience in the field of aviation.”

SEC. 5. Section 12 of the same Act is hereby amended to read as follows:

“SEC. 12, Personnel, ~[ Qualified existing personnel of the Air Transportation Office
(ATO) shall be given preference in the filling up of plantilla positions created in the
Authority, subject to existing civil service rules and regulations. ]

THE DIRECTOR GENERAL SHALL EXERCISE APPOINTING AND
DISCIPLINING POWERS OVER ALL PERSONNEL OF THE AUTHORITY.

CONSIDERING THE HIGHLY TECHNICAL CHARACTER AND NATURE
OF THE FUNCTIONS OF THE AUTHORITY, ITS PERSONNEL SHALL BE
EXEMPTED FROM THE REQUIREMENTS PRESCRIBED UNDER THE
RULES GOVERNING THE CAREER EXECUTIVE SERVICE. ALL LAWS,
RULES, AND REGULATIONS, GOVERNING POSITIONS,


CLASSIFICATIONS AND QUALIFICATION STANDARDS INCLUDING,
BUT NOT LIMITED TO, PRESIDENTIAL DECREEE NO.985, REPUBLIC
ACT NO.6758, AS AMENDED, JOINT RESOLUTION NO. 4 (2009 OF THE
PHILIPPINE CONGRESS) AND REPUBLIC ACT 10149.”

SEC. 6. Section 15 of the same Act is hereby amended to read as follows:

“SEC. 15. Fiscal Autonomy. — The Authority shall enjoy fiscal autonomy. All
moneys carned by the Authority from the collection/levy of any and all such fees,
charges, dues, assessments and fines it is empowered to collec/levy under this Act shall
be used solely to fund the operations of the Authority.

THE AUTHORITY SHALL LIKEWISE BE EXEMPTED FROM THE
PROVISIONS OF REPUBLIC ACT No. 7656 OR THE DIVIDEND LAW. THE
INCOME GENERATED BY THE AUTHORITY FROM AIR NAVIGATIONAL
CHARGES SHALL BE UTILIZED FOR COMPLIANCE WITH
INTERNATIONAL STANDARDS.OF SAFETY.

The utilization of any funds coming from the collection and/or levy of the Authority
shall be subject to the examination of the Congressional Oversight Committee
(COCAAP). THE COCAAP MAY REQUIRE THE AUTHORITY TO SUBMIT,
FURNISH OR PROVIDE ANY AND ALL DOCUMENTS IN RELATION TO
THE UTILIZATION OF FUNDS OF THE AUTHORITY AND ANY OTHER
NON-FINANCIAL DOCUMENTS RELATIVE TO THE DUTIES,
FUNCTIONS, OPERATIONS OF THE AUTHORITY.”

SEC. 7. Section 18 of the same Act is hereby amended to read as follows:

“SEC. 18. Compensation and Other Emoluments of Authority Personnel. - Within six
(6) months from the effectivity of this Act, the Board shall determine the new
schedule of salaries of the employees of the Authority subject to the compliance with
the existing compensation laws AND REVISE THE SAME FROM TIME TO
TIME AS IT MAY DEEM NECESSARY: Provided, That the Board shall
determine and fix the compensation, EMOLUMENTS and fringe benefits of
employees holding technical positions [ that are not common to the other agencies of
the government which shall be specified in the Implementing Rules and Regulations J.
IT SHALL PROVIDE ANNUAL REVIEWS OR INCREASES BASED ON
PRODUCTIVITY.”

SEC. 8. A new section 18-A is hereby inserted to read as follows:

“SEC. 18-A. MANAGEMENT OFFICIALS AND EMPLOYEES; MERIT
SYSTEM-— THE BOARD SHALL ESTABLISH A HUMAN RESOURCES
MANAGEMENT SYSTEM, WHICH SHALL PROMOTE
PROFESSIONALISM AT ALL LEVELS OF THE AUTHORITY IN
ACCORDANCE WITH SOUND PRINCIPLES OF MANAGEMENT.

A PROGRESSIVE COMPENSATION STRUCTURE, BASED ON, AND
EQUIVALENT TO THE STANDARDS OF THE AVIATION INDUSTRY, AS
PRACTICED AND OBSERVED IN THE INTERNATIONAL AVIATION


Sewrsnawne

at
12
13
14
15
16
17
18
19
20
21
22

25
26
27

29
30
31
32
33
34
35
36
37
38
39
40
41
42
43

45
46
41
48
49
50

INDUSTRIES, INCLUDING THE STANDARDS SET BY THE
INTERNATIONAL CIVIL AVIATION ORGANIZATION, SHALL BE
ADOPTED AS AN INTEGRAL COMPONENT OF THE AUTHORITY’S
HUMAN RESOURCES PROGRAM.”

SEC. 9. A new section 18-B is hereby inserted to read as follows:

“SEC. 18-B. EXTRA COMPENSATION. - ALL RATED AND/OR LICENSED
AIRMEN AND SUCH OTHER PERSONS OF THE AUTHORITY WHO MAY
BE AUTHORIZED TO UNDERTAKE OR PERFORM REGULAR AND
FREQUENT FLIGHTS IN THE PERFORMANCE OF THEIR DUTIES,
SHALL RECEIVE, UPON APPROVAL OF THE AUTHORITY, IN ADDITION
TO THEIR BASE PAY, AN INCREASE IN COMPENSATION OF AT LEAST
FIFTY PERCENTUM (50%) OF THEIR RESPECTIVE BASE PAY;
PROVIDED, HOWEVER, THAT THE NUMBER OF HOURS ACTUALLY
FLOWN BY SUCH AIRMEN AND AUTHORIZED PERSONNEL SHALL NOT
BE LESS THAN FOUR (4) PER MONTH; PROVIDED, FURTHER, THAT THE,
AFOREMENTIONED INCREASE IN COMPENSATION SHALL BE
MANDATORY ONLY IN THE FIRST INSTANCE FROM THE EFFECTIVITY
OF THIS ACT; PROVIDED, FINALLY, THAT FUTURE MANDATORY
INCREASES IN THE COMPENSATION OF THE RATED AND/OR
LICENSED AIRMEN AND SUCH OTHER PERSONS OF THE AUTHORITY
WHO MAY BE AUTHORIZED TO UNDERTAKE OR PERFORM REGULAR
AND FREQUENT FLIGHTS IN THE PERFORMANCE OF THEIR DUTIES,
MAY BE INCREASED BY THE AUTHORITY ONLY IF IT HAS SUFFICIENT
BUDGET FOR THE SAME AND IF IT WILL SERVE THE INTEREST OF THE
AVIATION INDUSTRY AS A WHOLE.”

SEC. 10. A new section 18-C is hereby inserted to read as follows:

“SEC. 18-C. EMPLOYMENT OF PERSONS FOR CONFIDENTIAL, HIGHLY
TECHNICAL AND POLICY DETERMINING POSITIONS - THE DIRECTOR
GENERAL MAY, MAKE APPOINTMENTS TO CONFIDENTIAL, HIGHLY
TECHNICAL, AND POLICY DETERMINING POSITIONS AS MAY BE
REQUIRED BY THE FUNCTIONS AND RESPONSIBILITIES OF THE
OFFICE.”

SEC. 11. Section 24 of the same Act is hereby amended to read as follows:
“SEC. 24. Powers of the Board. The Board shall have the following general powers:

XxX,

(d) ANY LAW TO THE CONTRARY NOTWITHSTANDING, ORGANIZE, RE-
ORGANIZE, AND [D]determine the organizational structure of the Authority in
accordance _ with the provisions of this Act, establish a human resources management
system based on merit and fitness, CREATE, TRANSFER, RE-ALIGN AND
ABOLISH OFFICES AND POSITIONS, and adopt a rational compensation and
benefits scheme EQUIVALENT TO THE STANDARDS SET BY THE
INTERNATIONAL CIVIL AVIATION ORGANIZATION (ICAO);


BSowmrauaene

i
12
13
14
15
16
7
18
19

21
22
23

25
26
27
28
29
30
31
32
33
34

36
37
38
39

41
42
43

45

47
48
49
50

[ (© Exercise appellate powers on any decisions, findings and rulings of the
Director General, to issue subpoena ad testificandum or subpoena duces tecum
requiring the attendance and testimony of witnesses in any matter or inquiry pending
before the Board and require the production of books, papers, contracts, agreements
and all other documents submitted for purposes of this section to be under oath and
verified by the person in custody thereof as to the truth and correctness of data
appearing in such books, papers, tariffs, contracts, agreements and all other
documents;

(Exercise appellate powers to order the taking of depositions in any proceeding,
or investigation, pending before the Board at any stage of such proceeding or
investigation; ]

Xxx

(4) Pronmulgate rules and regulations as may be necessary in the interest of safety in
air commerce pertaining to the issuance of the airman’s certificate including the
licensing of operating and mechanical personnel, type certificate for aircraft, aircraft
engines, propellers and appliances, airworthiness certificates, air carrier operating
certificates, air agency certificates, navigation facility and aerodrome certificates; air
traffic routes; radio and aeronautical telecommunications and air navigation aids;
aircraft accident inquiries; aerodromes, both public and private-owned; construction
of obstructions to aerodromes; height of buildings; antennae and other edifices;
registration of aircrafts; search and rescue; facilitation of air transports; operations of
aircrafts, both for domestic and international, including scheduled and non-scheduled;
meteorology in relation to civil aviation; rules of the air; air traffic services; rules for
prevention of collision of aircrafts; identification of aircraft; rules for safe altitudes of
flight; and such other rules and regulations, standards, governing other practices,
methods and/or procedures as the Director General may find necessary and
appropriate to provide adequately for safety regularity and efficiency in air commerce
and air navigation; ]

Xxx

[(m) Adopt a system for the registration of aircraft as hereinafter provided; ]

Xxx

[ @ Upon its own initiative or the recommendation of the Director General or an
application of a private person, grant exemption from the requirements of observing
rules or regulations issued in accordance with this Act: Provided, That said grant of
exemption is not prejudicial to flight safety;

(®) Formulate rules and regulations concerning compliance of the carrier and the
public for the safe transport of goods and materials by air pursuant to international
standards or Annexes to the Chicago Convention; and

(8) In coordination with the appropriate government agency tasked to provide airport
security, shall:


SewmrdsHsawne

i
12
13
14
15
16
7
18
19
20
21
22
23
24
25
26
27
28
29

31
32
33
34
35
36
37
38
39
40
41
42
43

45
47

49

(1) Prescribe reasonable regulation requiring that all passengers and all property
intended to be carried in the aircraft cabin in commercial air transport be screened
by weapon-detecting procedure or facilities employed or operated by employees
or agents of the air operator or foreign air operator prior to boarding the aircraft
for such transportation;

(2) Prescribe such other reasonable rules and regulations requiring such parties,
methods and procedures as the Director General may find necessary to protect
persons and property aboard aircraft operating in commercial air transport against
acts of criminal violence and aircraft piracy; and

(3) To the extent practicable, require uniform procedures for the inspection, detention,
and search of persons and property in domestic commercial air transport and
international commercial air transport to assure their safety and to assure that they
will receive courteous and efficient treatment by air operators and their agents and
employees. ]

(Q APPROVE POLICY ON LOCAL AND FOREIGN TRAVEL, AND THE
CORRESPONDING EXPENSES, ALLOWANCES, PER DIEMS OF
OFFICERS, EMPLOYEES, AGENTS OF THE AUTHORITY,
NOTWITHSTANDING THE PROVISIONS OF PRESIDENTIAL DECREE NO.
1177, EXECUTIVE ORDER 292, EXECUTIVE ORDER 248, AS AMENDED,
EXECUTIVE ORDER 298, AND SIMILAR LAWS;

(R) EXERCISE THE POWER OF EMINENT DOMAIN FOR THE PURPOSE
OF THIS ACT IN THE MANNER PROVIDED BY LAW, PARTICULARLY,
THE PREREQUISITES OF TAKING OF POSSESSION AND THE
DETERMINATION AND PAYMENT OF JUST COMPENSATION;
AND

(S) THE BOARD MAY PERFORM SUCH ACTS, THRU THE DIRECTOR
GENERAL OR APPROPRIATE OFFICE, CONDUCT SUCH
INVESTIGATION IN THE PERFORMANCE OF ITS QUASI JUDICIAL
FUNCTIONS, AS IT SHALL DEEM NECESSARY TO CARRY OUT THE
PROVISIONS OF THIS ACT.

IN EXERCISING THE POWERS GRANTED UNDER THIS ACT, THE
BOARD SHALL GIVE FULL CONSIDERATION TO THE REQUIREMENTS
OF NATIONAL DEFENSE, COMMERCIAL AND GENERAL AVIATION,
AND TO THE PUBLIC RIGHT OF TRANSIT THROUGH NAVIGABLE
AIRSPACE.”

SEC. 12. Section 25 is hereby amended to read as follows:

“SEC. 25. Issuance of Rules and Regulations. - The [ Board, in consultation with the ]
Director General, shall issue and provide for the enforcement of such orders, rules and
regulations as may be necessary to give effect to the provisions of this Act. All rules and
regulations issued in accordance with the -provisions -of this Act shall be formally
promulgated and periodically reviewed and updated in accordance with the requirements


ROH

Seoaraau

27
28
29

30
31

32
33

34
35
36
37
38
39

40
41
42
43

‘of the Administrative Code of the Philippines or any amendment or successor thereto and
the International Civil Aviation Organization Standards and Recommended Practices.
[Pending the promulgation of such new rules and regulations, the current rules and
regulations of the ATO shall continue to apply. J”

SEC. 13. Section 26 of the same Act is hereby amended to read as follows:

“SEC. 26. Setting of Charges and Fees. - The Board, after consultation with the Director
General, and after public hearing, shall determine, fix, impose, collect or receive
reasonable charges, fees, dues or assessments in respect of aviation certificates, licenses
and all other authorizations or permissions authorized to be issued under this Act and
all services performed by the Authority BASED ON THE PRINCIPLE OF COST
RECOVERY AT AN AGGREGATE LEVEL. Alll charges and fees shall be formally
promulgated in accordance with the requirements of the Administrative Code of the
Philippines or any amendment or successor thereto. Pending the promulgation of such
new schedule of charges and fees, the current charges and fees of the ATO shall
-continue to apply.”

SEC. 14. Section 27 of the same Act is hereby amended to read as follows:

“SEC. 27. Issuance of Rules of Procedure and Practice. - The [ Board may authorize the ]
Director General [ to ] shall issue or amend rules of procedures and practice BEFORE
‘THE AUTHORITY IN RELATION TO ITS REGULATORY FUNCTION as may
be required to be issued pursuant to the provisions of this Act or issue and adopt rules and
regulations [ and other ] TO IMPLEMENT THE REGULATORY issuances of the
ICAO. [ Pending the promulgation of such new rules of procedures and practice,
current rules of procedures and practices of the ATO shall continue to apply.]”

SEC. 15. Section 28 of the same Act is hereby amended to read as follows:

“SEC. 28. Appellate [ Powers ] Jurisdiction ~ [ The Board, on an appeal properly taken
by an interested party from a decision, judgment or order of the Director General,
shall have the power to:

(a) Review, confirm, modify, revise, amend or reverse, as the case may be,
decisions, judgments and/or orders of the Director General;

(6) Confirm, remit, mitigate, increase or compromise, as the case may be, fines
imposed by the Director General pursuant with the provisions of this Act; and

() Review, confirm, modify, revise, amend or reverse, as the case may be,
impositions by the Director General of liens on personal and real properties of
entities, persons, corporations or partnerships in default, or those who have failed to
perform their obligations pursuant to rules and regulations promulgated under this
‘Act, or those who shall have failed to pay the fines or other pecuniary penalties for
violation thereof.

In no case that the Director General shall participate in the hearing and adjudication
of an appealed case before the Board where the subject of appeal is a judgment or
decision rendered by his office. In such case, it requires four (4) concurring votes of
the members of the Board who actively participated in the deliberation of the


23
24
25
26
27
28
29
30

31
32
33
34

36
37
38
39
40
41
42

43
44
45

appealed case before the judgment or decision of the Director General can be
modified or reversed. }

ALL DECISIONS, RULINGS, RESOLUTIONS OF THE BOARD AND THE
DIRECTOR GENERAL ARE APPEALABLE TO THE COURT OF APPEALS.”

SEC.16. Section 30-of the same Act is hereby amended to-read as follows:

“SEC. 30. Annual Budget. THE AUTHORITY SHALL ADOPT AN ANNUAL
BUDGET TO FUND THE OPERATIONS OF THE AUTHORITY. UNLESS
THE AUTHORITY SHALL REQUIRE SUBSIDY AND/OR GUARANTEE OF
ITS LIABILITY FROM THE NATIONAL TREASURY, ITS BUDGET FOR
THE YEAR NEED NOT BE SUBMITTED TO CONGRESS FOR APPROVAL
AND INCLUSION IN THE GENERAL APPROPRIATIONS ACT.
SUPPLEMENTARY BUDGET MAY BE PREPARED AND ADOPTED AT A
BOARD MEETING CALLED FOR THE PURPOSE.”

SEC.17. Section 35 of the same Act is hereby amended to read as follows:

“SEC. 35. Powers and Functions of the Director General. - The Director General shall
be the chief executive and operating officer of the Authority. He shall have the
following powers, duties and responsibilities:

Xxx

(d) DETERMINE THE ORGANIZATIONAL STRUCTURE OF THE
AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF THIS ACT,
ESTABLISH A HUMAN RESOURCES MANAGEMENT SYSTEM BASED ON
MERIT AND FITNESS, AND ADOPT A RATIONAL COMPENSATION AND
BENEFITS SCHEME; EXERCISE APPELLATE POWERS TO ORDER THE
TAKING OF DEPOSITIONS IN ANY PROCEEDING, OR INVESTIGATION,
PENDING BEFORE THE BOARD AT ANY STAGE OF SUCH PROCEEDING
OR INVESTIGATION;

(e) To issue air OPERATOR certificate in accordance with the minimum safety
standards for the operation of the air carrier to whom such certificate is issued. The air
OPERATOR certificate shall be issued only to aircrafts registered under the provisions
of this Act.

AN AIR OPERATOR CERTIFICATE HOLDER MAY OPERATE AND USE
FOREIGN-REGISTERED AIRCRAFT PROVIDED THAT THE STATE OF
REGISTRATION DELEGATES TO THE DIRECTOR GENERAL THE
TECHNICAL AND SAFETY OVERSIGHT FUNCTIONS OVER THE
AIRCRAFT AND/OR ITS CREW, AS APPLICABLE PURSUANT TO ICAO
ARTICLE 83B/S, AND SUBJECT TO SUCH RULES AND REGULATIONS
PROMULGATED BY THE AUTHORITY.

(fF) PROMULGATE RULES AND REGULATIONS AS MAY BE NECESSARY
IN THE INTEREST OF SAFETY IN AIR COMMERCE PERTAINING TO THE
ISSUANCE OF THE AIRMAN'S CERTIFICATE INCLUDING THE


Sewraauavons

32

33

34

35

37
38

39
40

LICENSING OF OPERATING AND MECHANICAL PERSONNEL, TYPE
CERTIFICATE FOR AIRCRAFT, AIRCRAFT ENGINES, PROPELLERS AND
APPLIANCES, AIRWORTHINESS CERTIFICATES, AIR CARRIER
OPERATING CERTIFICATES, AIR AGENCY CERTIFICATES,
NAVIGATION FACILITY AND AERODROME CERTIFICATES; AIR
TRAFFIC ROUTES; RADIO AND AERONAUTICAL
TELECOMMUNICATIONS AND AIR NAVIGATION AIDS; AIRCRAFT
ACCIDENT INQUIRIES; AERODROMES, BOTH PUBLIC AND PRIVATE-
OWNED; CONSTRUCTION OF OBSTRUCTIONS TO AERODROMES;
HEIGHT OF BUILDINGS; ANTENNAE AND OTHER EDIFICES;
REGISTRATION OF AIRCRAFTS; SEARCH AND RESCUE;
FACILITATION OF AIR TRANSPORTS; OPERATIONS OF AIRCRAFTS,
BOTH FOR DOMESTIC AND INTERNATIONAL, INCLUDING
SCHEDULED AND NON-SCHEDULED; METEOROLOGY IN RELATION
TO CIVIL AVIATION; RULES OF THE AIR; AIR TRAFFIC SERVICES;
RULES FOR PREVENTION OF COLLISION OF AIRCRAFTS,
IDENTIFICATION OF AIRCRAFT; RULES FOR SAFE ALTITUDES OF
FLIGHT; AND SUCH OTHER RULES AND REGULATIONS, STANDARDS,
GOVERNING OTHER PRACTICES, METHODS AND/OR PROCEDURES AS
THE DIRECTOR GENERAL MAY FIND NECESSARY AND APPROPRIATE
TO PROVIDE ADEQUATELY FOR SAFETY REGULARITY AND
EFFICIENCY IN AIR COMMERCE AND AIR NAVIGATION;

(v) Adopt a system for the registration of aircraft as hereinafter provided.”

SEC 18. Section 40 of the same Act is hereby amended to read as follows:

“SEC. 40. Creation of Flight Standards Inspectorate Service.—(a) { The Board, other than
the offices it shall create in furtherance of this Act, shall establish a permanent office
known as the Flight Standards Inspectorate Service (FSIS) that will ] assist the Director
General in carrying out the responsibilities of his office for certification and ongoing
inspections of aircraft, airmen and air operators.

The FSIS shall perform the following functions:

(1) Airworthiness inspection;

(2) Flight operations inspection and evaluation; and

(3) Personnel licensing.”

[ Furthermore, the Board shall create, but not limited to, the following offices which will
provide support to the functions of the FSIS, namely: Aircraft Registration, Aircraft
Engineering and Standards, Airmen Examination Board and Office of the Flight
Surgeon.]

SEC. 19. Section 73 of the same Act is hereby amended to read as follows:

4


Sowmraauawnu

16

“SEC. 73. Statutory Lien AND POWER TO DETAIN. - The Director Generalf, after
complying with the required legal formalities provided by law,] shall have the power
to impose lien on AND DETAIN aircraft and machinery:

(a) Ifthe charges and other fees are not paid in full on due date or any part of the charges
or the late payment penalty thereto remains unpaid; and

(b) Failure to pay administrative fines arising from violation of any rules and
regulations promulgated by the Authority.”

SEC. 20. A new section 81-B is hereby inserted to read as follows:

“SEC. 81.B Notwithstanding Section 81 (b), the penalties provided under Section 81,
paragraph (b), clauses (5), (6), (7), (8), (9),(10), (11), and (12), may be imposed by a
court of competent jurisdiction after the filing of a proper criminal complaint by an air
operator, airman, or crew member.”

SEC. 21. A new section 84-A is hereby inserted to read as follows:

“SEC. 84-A. EXECUTION OF MONETARY JUDGMENT. -THE DIRECTOR
GENERAL IS AUTHORIZED TO ENFORCE MONETARY JUDGMENTS
THROUGH THE SHERIFF WHO SHALL DEMAND THE IMMEDIATE
PAYMENT OF THE FULL AMOUNT STATED IN THE WRIT OF
EXECUTION TO BE IMPOSED FOR EACH VIOLATION OF THIS ACT.

FOR THIS PURPOSE, THE DIRECTOR GENERAL MAY ISSUE AN ORDER
DIRECTING THE SHERIFF TO REQUEST THE ASSISTANCE OF LAW
ENFORCEMENT AGENCIES TO ENSURE COMPLIANCE WITH THE
WRIT OF EXECUTION, ORDERS OR PROCESSES.”

SEC. 22. Section 91 of the same Act is hereby amended to read as follows:

“SEC. 91. Congressional Oversight Committee. — A Congressional Oversight
Committee, hereinafter referred to as the “Committee”, is hereby constituted in
accordance with the provisions of this Act. The Committee shall be composed of the
Chairman of the Senate Committee on Public Services and Chairman of the House
Committee on Transportation and four (4) additional members from each House to be
designated by the Senate President and the Speaker of the House of Representatives,
respectively. The Committee shall, among others, in aid of legislation:

(@) Monitor and ensure the proper implementation of this Act;

(b) Review the collection performance of the Authority; and

(©) Review the proper implementation of the programs of the Authority and the use of its
collected fund AND BUDGET.

In furtherance of the hereinabove cited objectives, the Committee is empowered to
require the Authority to submit all pertinent information including, but not limited to,
its collection performance data and its annual audited financial statements certified by
the-Commission-on Audit. ANY MEMBER-OF THE COMMITTEE OR HIS OR:
HER REPRESENTATIVE IS AUTHORIZED TO SIT AS AN OBSERVER IN

12


Sowa auavne

i
12
13
14
15
16
M7
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33

ANY OF THE MEETING OR FUNCTION OF THE BOARD. The Congressional
Oversight Committee shall be in existence for a period of [ five (5) ] TEN (10) YEARS
FROM THE EFFECTIVITY OF THIS ACT, and thereafter, its oversight functions
shall be exercised by the Senate Committee on Public Services and the House
Committee on Transportation acting separately.

SEC. 23. TRANSITORY PROVISIONS — ALL POWERS, DUTIES AND RIGHTS
VESTED BY LAW AND EXERCISED BY THE AUTHORITY RELATING TO THE
PLANNING, DEVELOPMENT, CONTROL, SUPERVISION, CONSTRUCTION,
MAINTENANCE, OPERATION, PROVISION OF SERVICES AND FACILITIES
AND THE EFFICIENT FUNCTIONING OF ALL DOMESTIC AND
INTERNATIONAL AIRPORTS PURSUANT TO REPUBLIC ACT NO. 9497, SHALL
REMAIN WITH THE AUTHORITY UNTIL THE AIRPORT GOVERNING
AUTHORITY TASKED TO IMPLEMENT THESE FUNCTIONS IS ESTABLISHED
NOT MORE THAN FIVE YEARS FROM THE EFFECTIVITY OF THIS ACT.

ALL ASSETS, REAL AND PERSONAL PROPERTIES, CONTRACTS,
RECORDS AND DOCUMENTS, FUNDS AND REVENUES OWNED BY OR VESTED
IN THE AUTHORITY IN RELATION TO THE ABOVE POWERS, DUTIES AND
RIGHTS SHALL BE TRANSFERRED TO THE AIRPORT GOVERNING
AUTHORITY. IN THE INTERIM, THE AUTHORITY SHALL SEPARATE THE
DEVELOPMENTAL AND COMMERCIAL FUNCTIONS BY IMPLEMENTING AN
ORGANIZATIONAL RESTRUCTURING THAT WILL ENABLE AND ENSURE THE
FUNCTIONAL SEPARATION WITHIN A PERIOD OF ONE (1) YEAR FROM THE
EFFECTIVITY OF THIS ACT.

SEC. 24. Repealing Clause REPUBLIC ACT 10149 AND REPUBLIC ACT 7656
AND OTHER LAWS decrees, executive orders, rules and regulations and other issuances or
part thereof, which are inconsistent with this Act, are hereby repealed, amended, or modified
accordingly.

SEC. 25. Effectivity — This Act shall take fifteen (15) days after its publication in two (2)
newspapers of general circulation.
Approved,