SIXTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES)
Third Regular Session )

HOUSE OF REPRESENTATIVES.
House Bill No,_6083

Introduced by REP. BEN P. EVARDONE
Lone District, Eastern Samar

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 hadconcems over the ability of its counterpart (formerly ATO) to implement
global aviation standards, which include security andsafety, 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.

As of early 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 I 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.

CAAP was already given positive endorsement by the European Commission when it
gave the Philippines the category upgrade. This means that international aviation bodies can now
“rely on CAAP’s judgment regarding the safety of other airlines for in-country use” by
international travellers.

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.

The significant amendments being proposed in this bill include:
© Increasing the term of the Director General (DG) to seven years

Increasing the DG's term of office to 7 years - in the CAAP law is consistent with the
intent of strengthening -CAAP as a regulatory body. The Legislature in enacting the
CAAP law is sought to insulate the agency from the constantly changing political climate
in the Executive Department. The mandate is to cause the restructuring of the civil
aviation system, the promotion, development and regulation of the technical, operational,
safety, and aviation security functions,” which can hardly be realized under a DG who
has no security of tenure and would, constantly find difficulty in instituting reforms
attuned to international standards in civil aviation if he is interrupted by factors other than
removal for cause.

‘© Exemption of CAP from the Salary Standardization Law (SSL)

‘The proposed exemption from the Salary Standardization Law is based the fact that the
qualifications and functions performed by CAAP directors, officers, and employees are different
from those performed by other “government employees” as distinctly and highly technical in
nature.

ICAO relates that there is an impending global shortage of aviation professionals and
aviation safety professionals. Taking the US as an example, in the next 20 years, there will be a
need to add 25,000 new aircrafts to the current 17,000-strong commercial fleet. By 2026, there
will be a need for 480,000 new technicians to maintain these aircrafts and over 350,000 pilots to
fly them. Between 2005 and 2015, 73% of the American air traffic controller population is
eligible for retirement. The underlying problem, simply stated, the demand for aviation
professionals will exceed supply. The scenario is the same here in the Philippines. ICAO
enumerates factors for the decline and possible shortage to include “wholesale retirements in the
current generation of aviation professionals, aviation professions not attractive enough to
potential candidates, competition with other industry sectors for skilled employees, training
capacity insufficient to meet demand, learning methodologies not responsive to new evolving


leaming style, accessibility to affordable training, lack of harmonization of competencies in
some aviation disciplines.”

‘The proposed amendments, likewise, seek to make the aviation industry more attractive
to professionals by granting CAAP, as lead authority, with a more flexible and less bureaucratic
entry process workers, officials, and aviation technicians and professionals

* Enhanced fiscal autonomy
In view of the peculiar character of projects relating to regulatory and aviation safety

oversight functions, the amendment pertaining to increased fiscal autonomy is intended to
minimize difficulties in securing prompt concurrence of budget allocations and expenditures.

There is a dire need for these amendments. The lingering concern over the issue of the
ability of the CAAP to implement safety standards affects the government's tourism targets since
CAAP plays a key role in promoting tourism as one of the Philippine economy's growth sectors.

In 2013, tourist arrivals reached an all-time high of 4.7 million, The Aquino
administration is aiming to increase this to 10 million by 2016. Achieving the government’s
target of luring 10 million foreign tourist by 2016 increases certainty if the upgrade is sustained.
This will certainly make the country more competitive and contribute tremendously in achieving
the 10 million target by 2016.

The CAAP is the regulatory body responsible for air safety within Philippine borders.
This is the reason it has to adhere to the requirements and standards set by international aviation
authorities and make them feel confident that carriers under its direct supervision that fly into
other jurisdictions pose no risk and meet an internationally accepted set of safety and
competence standards.

Reforming air transportation is critically important to the Philippines, not so much as it is
1a determining factor to the full realization of the latter’s potential as a tourist and business
destination, but more importantly, to provide safe and efficient travel for the citizens and visitors
in the country that they truly deserve.

Of paramount importance should always be guaranteeing the safety and reliability of air
transportation in the Philippines. Until the flying public can be firmly reassured that anyaccident
Was not a symptom of much larger problems that increase the likelihood of another accident, any
other issues become irrelevant.

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

ia: P. EVARDONE


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SIXTEENTH CONGRESS 4}
OF THE REPUBLIC OF THE PHILIPPINES )
Third Regular Session )

HOUSE OF REPRESENTATIVES

6083

House Bill No.

Introduced by REP. BEN P. EVARDONE.
Lone District, Eastern Samar

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 Senate and House of Representatives of the Philippines in Congress
assembled:

TION. 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 CONTRACTING STATE TO THE CHICAGO
CONVENTION.”

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) SOLELY for the purpose of policy coordination. For this
purpose, the existing Air Transportation Officecreated under the provisions of Republic
‘Act No. 776, as amended, ishereby abolished.

XXX

(a] APPOINTMENT AND TERMOF —_OFFICE Director General - The Authority
shall beheaded by a Director General of Civil Aviation, referred to in this Act as
the "Director General," who 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}the

Director General shall be appointed BY THE PRESIDENT OF THE
PHILIPPINES based on the qualifications herein provided and shall have a TERM of
office for a period of SEVEN (7) years. His appointment may be extended for another
non-extendible term of 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 rHE UNEXPIRED PORTION
OF THE TERM OF HIS PREDECESSOR. NO DIRECTOR GENERAL CAN SERVE
IN OFFICE FOR MORE THAN 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.

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

‘The corporate powers of the Authority shall be vested in a Board which is composed of
seven (7) members, namely: the Secretary of the Department of Transportation and
Communications as chairman ex officio, the Director General of Civil Aviation (DGCA)
as the Vice Chairman and five (5) members from the private sector.

In his absence, the Chairman shall designate an undersecretary of the DOTC to act in his
behalf as Chairman. The Director General, in his absence, shall designate a Deputy
Director General of the Authority to act as Vice Chairman.


‘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.
To be appointed by the President.

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

. 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, recognized competence and a [ degree
holder with at least five (S)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:

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

CONSIDERING THE HIGHLY TECHNICAL CHARACTER AND NATURE

OFTHE FUNCTIONS OF THE AUTHORITY, ITS PERSONNEL SHALL BE
EXEMPTED FROM THE REQUIREMENTS PRESCRIBED UNDER THE RULES
GOVERNING THE CARI 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 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, EMOLUMENTSand fringe benefits of employees holding technical
positions. IT SHALL PROVIDE ANNUAL REVIEWS OR INCREASES BASED ON
PRODUCTIVITY.

SEC. 7. 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. 8. A new section 18-B is hereby inserted in Republic Act 9497, 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
8, IN ADDITION TO EI AN IN
COMPENSATION OF AT LE. IFTY PERCENTUM (50%) OF THEIR
RESPECTIVE BASE PAY; PROVIDED, HOWEVER, THAT THE NUMBER OF
HOURS ACTUALLY FLOWN BY SUCH AIRME AND AUTHORIZED
PERSONNEL SHALL NOT BE LESS THAN FOUR (4) MONTH.

WHENEVER THE DIRECTOR-GENERAL SHALL REQUIRE ANY EMPLOYEE
OF THE AUTHORITY TO WORK BEYOND THE USUAL OFFICE HOURS OR
ON HIS NON-WORKING DAY, SUCH EMPLOYEE SHALL BE ENTITLED TO
RECEIVE AN ADDITIONAL COMPENSATION EQUIVALENT TO AT LEAST
TWO HUNDRED PERCENTUM (200%) OF HIS REGULAR SALARY.”

SEC. 9. 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 DETERMININGPOSITIONS — THE DIRECTOR
GENERAL MAY,MAKE APPOINTMENTS TO CONFIDENTIAL, HIGHLY
TECHNICAL, AND POLICY DETERMINING POSITIONSAS MAY BE
REQUIRED BY THE FUNCTIONS AND RESPONSIBILITIES OF THE OFFICE.”
SEC. 10. 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

(4) ANY LAW TO THE CONTRARY NOTWITHSTANDING, ORGANIZE, RE-
ORGANIZE, AND Determine the organizational structure of the Authority in accordance


8

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, AND THE

CORRESPONDING EXPENSES, ALLOWANCES, PER DIEMS OF OFFICERS,

EMPLOYEES, AGENTS OF THEAUTHORITY , NOTWITHSTANDING THE

PROVISIONS OF PRESIDENTIAL DECREE NO. 1177, EXECUTIVE ORDER 292,
EXECUTIVE ORDER 248, AS AMENDED, EXECUTIVE ORDER 298, AND
SIMILAR LAWS;

(U) EXERCISE POWER OF EMINENT DOMAIN FOR THE PURPOSE OF
THIS ACT IN 1 MANNER PROVIDED BY LAW, PARTICULARLY, THE
PREREQUISITES OF TAKING OF POSSESSION AND THE DETERMINATION
AND PAYMENT OF JUST COMPENSATION; AND

(V) THE BOARD MAY PERFORM SUCH ACTS, THRU THE DIRECTOR
GENERAL OR APPROPRIATE OFFICE, CONDUCT SUCH INVESTIGATION IN
THE IRMANCE 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 11. The following subsections of Sec.24-A are hereby deleted:

Subsec. e, fj, m, q, rand s.

SEC.12 . 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
RESOLUTIONAPPROVED 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



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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 13. Section 25 is hereby amended to read as follows:

SEC. 25. Issuance of Rules and Regulations. - 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.14 . Section 26 of the same Act is hereby amended to read as follows:

“SEC. 26. Setting of Charges and Fees. - The Board, afler 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 AuthorityBASED 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 15. 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.

SEC 16. Sec 28 of the same Act is hereby amended as follows:

SEC. 28. Appellate Jurisdiction — All decisions, rulings, resolutions of the Board and the
Director General are appealable to the Court of Appeals.

SEC.17 . 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


10

NEED NOT BE SUBMITTED TO CONGRESS FOR APPROVAL ANDINCLUSION
IN THE GENERAL APPROPRIATIONS ACT. SUPPLEMENTARY BUDGET MAY
BE PREPARED AND ADOPTED AT A BOARD MEETING CALLED FOR THAT
PURPOSE.”

SEC.18 . Section 35 of the same Act is hereby amended to read as follows:

“SEC. 35. Powers and Funetions 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 OPERATI
FOREIGN REGISTERED AIRCRAI PROVIDED THAT ITS
EGISTRATION DELEGATES TO.
HNICAL AND SAFETY OVERSIGHT FUNCTIONS 0
AND/OR ITS CREW, AS APPLICABLE.

AND. US

STATE OF
THE

THE AIRCRAFT

(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;

( 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 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 faci
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;


eo

Que

SEC 18. 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. 19. 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. 20. 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 WITH THE WRIT OF
EXECUTION, ORDERS OR PROCESSES.”

SEC. 21. Repealing Clause -REPUBLIC ACT 10149 AND REPUBLIC ACT 7656
AND OTHER LAWSdecrees, executive orders, rules and regulations and other issuances or part
thereof, which are inconsistent with this Act, are hereby repealed, amended, or modified
accordingly.


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SEC. 22. Effectivity — This Act shall take fifteen (15) days after its publication in two (2)
newspapers of general circulation.

Approved