SAFETY MANAGEMENT SYSTEMS.

SEC. 102. SAFETY MANAGEMENT SYSTEMS. (a) [49 U.S.C. 44701 note] Rulemaking Proceeding.— (1) In general.—Not later than 30 days after the date of enactment of this title, the Administrator shall initiate a rulemaking proceeding to require that manufacturers that hold both a type certificate and a production certificate issued pursuant to section 44704 of title 49, United States Code, where the United States is the State of Design and State of Manufacture, have in place a safety management system that is consistent with the standards and recommended practices established by ICAO and contained in annex 19 to the Convention on International Civil Aviation (61 Stat. 1180), for such systems. (2) Contents of regulations.—The regulations issued under paragraph (1) shall, at a minimum— (A) ensure safety management systems are consistent with, and complementary to, existing safety management systems; (B) include provisions that would permit operational feedback from operators and pilots qualified on the manufacturers’ equipment to ensure that the operational assumptions made during design and certification remain valid; (C) include provisions for the Administrator’s approval of, and regular oversight of adherence to, a certificate holder’s safety management system adopted pursuant to such regulations; and (D) require such certificate holder to adopt, not later than 4 years after the date of enactment of this title, a safety management system. (b) Final Rule Deadline.—Not later than 24 months after initiating the rulemaking under subsection (a), the Administrator shall issue a final rule. (c) Surveillance and Audit Requirement.—The final rule issued pursuant to subsection (b) shall include a requirement for the Administrator to implement a systems approach to risk-based surveillance by defining and planning inspections, audits, and monitoring activities on a continuous basis, to ensure that design and production approval holders of aviation products meet and continue to meet safety management system requirements under the rule. (d) Engagement With ICAO.—The Administrator shall engage with ICAO and foreign civil aviation authorities to help encourage the adoption of safety management systems for manufacturers on a global basis, consistent with ICAO standards. (e) Safety Reporting Program.—The regulations issued under subsection (a) shall require a safety management system to include a confidential employee reporting system through which employees can report hazards, issues, concerns, occurrences, and incidents. A reporting system under this subsection shall include provisions for reporting, without concern for reprisal for reporting, of such items by employees in a manner consistent with confidential employee reporting systems administered by the Administrator. Such regulations shall also require a certificate holder described in subsection (a) to submit a summary of reports received under this subsection to the Administrator at least twice per year. (f) Code of Ethics.—The regulations issued under subsection (a) shall require a safety management system to include establishment of a code of ethics applicable to all appropriate employees of a certificate holder, including officers (as determined by the FAA), which clarifies that safety is the organization’s highest priority. (g) Protection of Safety Information.—Section 44735(a) of title 49, United States Code, is amended— (1) by striking “title 5 if the report” and inserting the following:“title 5— “(1) if the report” ; (2) by striking the period at the end and inserting “; or”; and (3) by adding at the end the following: “(2) if the report, data, or other information is submitted to the Federal Aviation Administration pursuant to section 102(e) of the Aircraft Certification, Safety, and Accountability Act.” .