ON
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= pare: 08 SEP 204

Republic of the Philippines /
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

House Bill No. 6115

Introduced by HON. CESAR V. SARMIENTO

EXPLANATORY NOTE

Republic Act 9497, otherwise known as the Civil Aviation Act of 2008 was
signed into law on March 4, 2008. The law abolished the Air Transportation
Office (ATO) and in its stead created the Civil Aviation Authority of the
Philippines (CAAP), which is mandated to set comprehensive, clear, and
impartial rules for the aviation industry. Under RA 9497, the CAAP shall be an
independent regulatory body with quasi-judicial and quasi-legislative powers with
corporate attributes.

Prior to the passage of RA 9497, the US Federal Aviation Authority (FAA)
downgraded the Philippines to Category 2 status in 2007 after finding 88 critical
elements. The "downgrade" meant the FAA had concerns over the ability of its
counterpart (formerly ATO) to implement global aviation standards, which include
security and safety, among others. In 2010, the EU placed Philippine air carriers
on its blacklist, banning any airline from the Philippines from flying to destinations
in Europe. These restrictions served as obstacles in the expansion plans of both
Philippine Airlines and Cebu Pacific. The restrictions prevent airlines from the
Philippines from mounting new flights from the Philippines to the US or Europe. It
is likewise perceived as having a negative impact on tourism and the growth of
the Philippines’ air transport sector in general

This year, the technical review report of the FAA cited 23 “critical
elements” that still have to be addressed for the improvement of the country's
aviation status. The remaining "critical elements" include fine-tuning of the
Philippine Civil Air Regulations, changing the CAAP's safety and oversight
structure, updating its database storing system, standardizing their certification of
safety inspectors, and revalidating airline carriers, among others. The recent
efforts of CAAP have led to the resolution of many of the regulatory concerns
raised, as indicated by the restoration of the Philippines to Category 1 status in
April 2014 and the lifting of the ban by the EU on Philippine carriers to mount
flights into Europe. This proposed measure seeks to fully address the still
perceived deficiencies in the supervision and management of the Philippine civil
aviation industry and to strengthen CAAP as the country’s designated civil
aviation authority. There is a need to pass these amendments in order to sustain
and not to derail CAAP’s efforts which once again allowed carriers to offer direct
flights from the Philippines to Europe and to more destinations in the United
States as it continues to work with international aviation bodies to improve and
upgrade the status of Philippine aviation.

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

ee

CESAR V. SARMIENTO


nv

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

House Bill No. 6115

Introduced by HON. CESAR V. SARMIENTO.

AN ACT STRENGTHENING THE CIVIL AVIATION AUTHORITY OF THE
PHILIPPINES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 9497,
OTHERWISE KNOWN AS THE CIVIL AVIATION AUTHORITY ACT OF 2008

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

SECTION. 1. Section 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 A 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),hereinafter referred to as the
"Authority" attached to the Department of Transportation and
Communications (DOTC) 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. 10140, OTHERWISE KNOWN AS


w

THE GOCC GOVERNANCE ACT OF 2011 AND FROM THE
JURISDICTION OF THE GOVERNANCE COMMISSION FOR
GOVERNMENT-OWNED OR CONTROLLED CORPORATION.

THE AUTHORITY SHALL HOWEVER 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 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.

XXX

(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 UNLESS OTHERWISE
PROVIDED BY LAW, 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, OTHERWISE KNOWN AS THE GOCC
GOVERNANCE ACT OF 2011, [T]he Director General shall be appointed
based on the qualifications herein provided and shall have a tenure of
office for a period of six (6) years. His appointment may be extended for
another non-extendible term of six (6) 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
TWELVE (12) YEARS.

THE PRESIDENT OF THE PHILIPPINES SHALL APPOINT THE
DIRECTOR GENERAL FROM A SHORTLIST OF FOUR (4) NOMINEES
PREPARED BY THE BOARD OF DIRECTORS CONSTITUTED AS A
SEARCH COMMITTEE WHO SHALL RECEIVE AND EVALUATE
NOMINATIONS. NO INCUMBENT DIRECTOR GENERAL SHALL BE A
MEMBER OF THE SEARCH COMMITTEE.

UPON EXPIRATION OF THE INCUMBENT DIRECTOR GENERAL'S
TERM OR IN CASE OF VACANCY, ALL OF THE MEMBERS OF THE
BOARD OF DIRECTORS, CONSTITUTED AS A SEARCH COMMITTEE
WHO SHALL RECEIVE AND EVALUATE NOMINATIONS, AND SHALL
PREPARE A SHORTLIST OF THREE (3) NOMINEES THEREOF. THE
PRESIDENT OF THE PHILIPPINES MAY OR MAY NOT CHOOSE TO
APPOINT THE DIRECTOR GENERAL FROM THE AFOREMENTIONED
SHORTLIST. NO INCUMBENT DIRECTOR GENERAL SHALL BE A
MEMBER OF THE SEARCH COMMITTEE.

eed

SEC. 3. SECTION 5 OF THE SAME ACT IS HEREBY AMENDED AS
FOLLOWS:

Sec. 5. Composition of the Board Members. — The corporate powers of
the Authority shall be vested in a board, which is composed of eleven (11)


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;

(c) The Secretary of Finance;

(d) The Secretary of Foreign Affairs;

(e) The Secretary of Justice;

(f) The Secretary of the Interior and Local Government;

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

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

() THE SECRETARY OF THE DEPARTMENT OF NATIONAL
DEFENSE;

(J) REPRESENTATIVE FROM THE PRIVATE SECTOR WHO WILL
REPRESENT THE AIRLINE INDUSTRY IN THE PHILIPPINES; AND

(K)REPRESENTATIVE FROM THE PRIVATE SECTOR WHO WILL
REPRESENT THE CONSUMERS IN THE PHILIPPINES.

THE DIRECTORS LISTED UNDER SUBSECTION (A) TO (I)
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 (C) TO (I), 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. THE
DIRECTORS APPOINTED IN SUBSECTIONS (J) AND (K) CANNOT
DESIGNATE A REPRESENTATIVE TO ACT ON HIS OR HER BEHALF
DURING ANY FUNCTION OF THE AUTHORITY.

THE MEMBERS FROM THE PRIVATE SECTOR SHALL BE CITIZENS
OF THE PHILIPPINES, AT LEAST THIRTY-FIVE YEARS OLD, OF
GOOD MORAL CHARACTER, UNQUESTIONABLE INTEGRITY, OF
KNOWN PROBITY AND WITH RECOGNIZED COMPETENCE IN THE
FIELD OF MANAGEMENT, CIVIL AVIATION, AND RELATED FIELDS.

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
as the Director General unless he is a Filipino citizen, at least thirty-five
(35) years of age, of good moral character, unquestionable integrity,
tecognized competence and a degree holder with at least FOUR (4)
years supervisory or management experience in the field of aviation.”

SEC. 4. Section 12 of the same Act is hereby amended to read as
follows:

“SEC. 12. Personnel. -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. 5. Section 15 of the same Act is hereby amended to read as
follows:

SECTION 15. Fiscal Autonomy. — The Authority shall enjoy fiscal
autonomy. All moneys earned by the Authority from the collection/levy of
any and all such fees, charges, dues, assessments and fines it is
empowered to collect/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.

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, REGULATORY and LEGAL positions. IT SHALL PROVIDE
ANNUAL REVIEWS OR INCREASES BASED ON PERFORMANCE AND
PRODUCTIVITY BASED ON PRE-DETERMINED GOALS SET BY THE
BOARD OF THE AUTHORITY.

SEC. 6. A new section 18-A is hereby inserted in Republic Act 9497, 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
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. 7. A new section 18-B is hereby inserted in Republic Act 9497, to
read as follows:

“SEC. 18-B. 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 CAAP, 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 THE AMENDMENT TO THIS LAW; 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 THE AUTHORITY
HAS ITS OWN SUFFICIENT BUDGET FOR THE SAME AND IF IT WILL
SERVE THE INTEREST OF THE AVIATION INDUSTRY AS A WHOLE.”

SEC. 8. A new section 18-C is hereby inserted in Republic Act 9497, to
read as follows:

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

SEC. 9. Section 24 of the same Act is hereby amended to read as
follows:

“Sec. 24-A. Powers of the Board. The Board shall have the following
general powers:

XXX

(d) ANY LAW TO THE CONTRARY NOTWITHSTANDING, ORGANIZE,
RE-ORGANIZE, AND determine the organizational structure of the


Authority in accordance with the provisions of this Act, establish a
human resources management system basedon 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);

Xxx,

(T) APPROVE POLICY ON LOCAL AND FOREIGN TRAVEL, AS LONG
AS THE SAME WILL SERVE TO ADVANCE THE INTEREST OF THE
STATE OF CIVIL AVIATION IN THE PHILIPPINES, AND THE
CORRESPONDING EXPENSES, ALLOWANCES, PER DIEMS OF
OFFICERS, EMPLOYEES, AGENTS OF THEAUTHORITY, AS LONG AS
THE SAME ARE REASONABLE, NOTWITHSTANDING THE
PROVISIONS OF PRESIDENTIAL DECREE NO. 1177, EXECUTIVE
ORDER 292, EXECUTIVE ORDER 248, AS AMENDED, EXECUTIVE
ORDER 298, AND SIMILAR LAWS;

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

(V) THE BOARD MAY PERFORM SUCH ACTS, THROUGH 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, ANDTO THE PUBLIC RIGHT OF TRANSIT
THROUGH NAVIGABLE AIRSPACE.”

SEC. 10. A new section 24-B is hereby inserted in Republic Act 9497, to
read as follows:

“SEC. 24-B. DELEGATION OF POWER - THE BOARD MAY, BY
RESOLUTION APPROVED AT A BOARD MEETING, DELEGATE ALL
OR ANY OF ITS POWERS TO THE DIRECTOR GENERAL, A MEMBER
OF THE BOARD OR A COMMITTEE. THE DELEGATE IS, IN THE
EXERCISE OF A DELEGATED POWER, REMAINS SUBJECT TO THE
CONTROL AND SUPERVISION OF THE BOARD THE DELEGATION
MAY BE REVOKED BY RESOLUTION OF THE BOARD. A
DELEGATION CONTINUES IN FORCE IN SPITE OF CHANGES IN THE
COMPOSITION OF THE BOARD.

THIS PROVISION SHALL HAVE RETROACTIVE EFFECT INSOFAR AS
IT DOES NOT PREJUDICE OR IMPAIR VESTED OR ACQUIRED
RIGHTS IN ACCORDANCE WITH EXISTING LAWS.”


SEC. 11. Section 25 is hereby amended to read as follows:

SEC. 25. ISSUANCE OF RULES AND REGULATIONS. - THE BOARD,
UPON 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 OF THE
ADMINISTRATIVE CODE OF THE PHILIPPINES OR ANY AMENDMENT
OR SUCCESSOR THERETO AND THE INTERNATIONAL CIVIL AVIATION
ORGANIZATION STANDARDS AND RECOMMENDED PRACTICES.

SEC. 12. 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. All 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. 13. Section 27 of the same act is hereby amended as follows:

SEC. 27. ISSUANCE OF RULES OF PROCEDURE AND PRACTICE. -
THE DIRECTOR GENERAL SHALL ISSUE OR AMEND RULES OF
PROCEDURES AND PRACTICE BEFORE THE CAAP IN RELATION TO
ITS REGULATORY FUNCTION AS MAY BE REQUIRED BY THE
PROVISIONS OF THIS ACT OR ISSUE AND ADOPT RULES AND
REGULATIONS TO IMPLEMENT THE REGULATORY ISSUANCES OF
THE ICAO; PROVIDED THAT SUCH SHALL FIRST BE APPROVED BY
THE BOARD BEFORE SUCH RULES, REGULATIONS, AND OTHER
REGULATORY ISSUANCES BEFORE THE SAME TAKES EFFECT.

SEC. 14. 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.
SUPPLEMENTARY BUDGET MAY BE PREPARED AND ADOPTED AT
ABOARD MEETING CALLED FOR THAT PURPOSE.”

SEC. 15. 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

(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 ITS STATE OF
REGISTRATION DELEGATES TO THE DIRECTOR GENERAL = THE
TECHNICAL AND SAFETY OVERSIGHT FUNCTIONS OVER THE
AIRCRAFT AND/OR ITS CREW, AS APPLICABLE.”

(f) Submit for the approval of the Board, 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;

SEC. 16. Section 40 of the Same Act is hereby amended as follows:

“SEC. 40. Creation of Flight Standards Inspectorate Service.- (a) A
permanent office known as the Flight Standards Inspectorate Service (FSIS)
shall be established to 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.”

SEC. 17. Section 73 of the same Act is hereby amended to read as follows:

“SEC. 73. Statutory Lien AND POWER TO DETAIN. - The Director
General shall have the power to impose lien on AND DETAIN aircraft and
machinery:

(a) If the 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. 18. A new section 84-A is hereby inserted in Republic Act 9497, 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


10

WITH THE WRIT OF EXECUTION, ORDERS OR PROCESSES.”

SEC. 19. Section 91 of the same Act is hereby amended to read as follows:

SECTION 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:

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

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

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

SEC. 20. 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. 21. Effectivity — This Act shall take fifteen (15) days after its publication in
two (2) newspapers of general circulation.

Approved.