On Administration and Regulation in the Field of Transportation

LAW OF GEORGIA

ON ADMINISTRATION AND REGULATION IN THE FIELD OF TRANSPORTATION

This Law defines the legal and organisational basis for the administration and regulation in the field of transportation within the territory of Georgia.

Chapter I - General Provisions

Article 1 - Definition of terms used in the Law

The terms used in this Law have the following meanings:

a) transportation system - a unity of road, special, and sea/river transport, as well as transport enterprises in the field of civil aviation, artificial transport construction, appropriate infrastructure of a transport network and their administrative systems;

b) activities in the field of transportation - activities related to the transportation process in the field of road, special, sea/river transport and civil aviation;

c) means of transport - a movable (road, special, sea, air or river) transport unit used for the transportation of passengers and cargo and for carrying out aviation works;

d) transportation process - a complex of activities ensuring the transportation of passengers and cargo and satisfying the demands of consumers for carrying out aviation works;

e) bodies of technical regulation in the field of transportation - the Land Transport Agency, the Maritime Transport Agency and the Civil Aviation Agency, legal entities under public law within the Ministry of Economy and Sustainable Development of Georgia, that exercise authority in the field of transportation granted by this Law and respective legislation;

f) state registration - activities related to registering a transport system and means of transport in the field of transportation in the cases and in accordance with procedures established by the legislation of Georgia;

g) field of transportation - a unity of a transport system and a transportation process;

h) technical regulations - a document determined in accordance with the Product Safety and Free Movement Code;

i) technical regulation - development of technical regulations for security reasons in the field of transportation, and supervision of their implementation;

j) fee - a mandatory amount that shall be paid for services provided by the Land Transport Agency, the Maritime Transport Agency and the Civil Aviation Agency to their accounts;

k) service - for the purposes of carrying out of an unhindered and safe transportation process, activities assigned under the legislation of Georgia to the Land Transport Agency, the Maritime Transport Agency and the Civil Aviation Agency, legal entities under public law within the Ministry of Economy and Sustainable Development of Georgia, that are related to granting rights to carry out activities determined by international agreements and relevant normative acts of Georgia, issuing documents confirming the compliance of transport safety, keeping records of and registering those documents and monitoring their use, as well as upgrading and/or granting/recognising the qualification of parties to the transportation process, and in order to carry out the mentioned activities interested persons shall pay a fee to the Land Transport Agency, the Maritime Transport Agency and the Civil Aviation Agency;

l) special transport - a unity of means of transport with a mechanical drive and transport systems (cable way, cable railway, mono railway and others), intended for the transportation of passengers and cargo by a special land or land-based route, which is regulated by the Land Transport Agency.

Law of Georgia No 856 of 23 December 2008 - LHG I, No 40, 29.12.2008, Art. 281

Law of Georgia No 3748 of 26 October 2010 - LGH I, No 62, 5.11.2010, Art. 388

Law of Georgia No 4211 of 22 February 2011 - website, 10.3.2011

Law of Georgia No 2399 of 2 May 2014 - website, 16.5.2014

Article 2 - Purpose of the Law

The purpose of this Law is to define the legal basis for the principles of technical regulation in the field of transportation and for the functioning of the bodies of technical regulation.

Law of Georgia No 4211 of 22 February 2011 - website, 10.3.2011

Article 3 - Legislation of Georgia in the field of transportation

Relations in the field of transportation shall be regulated on the basis of treaties and international agreements of Georgia, this Law and other normative acts.

Article 4 - Scope of the Law

1. This Law shall apply to:

a) all operators in the field of transportation;

b) all means of transport within the territory of Georgia;

c) means of transport of Georgia within the territory of other countries, unless otherwise determined by the legislation of those countries.

2. This Law shall not apply to railway transport, pipelines and infrastructure related to them.

Chapter II - State Administration in the Field of Transportation

Article 5 - State administration in the field of transportation

1. A unified state policy in the field of transportation shall be developed and carried out by the Ministry of Economy and Sustainable Development of Georgia (‘the Ministry’).

2. The main functions of the Ministry in the field of transportation shall be determined by this Law, other legislative acts of Georgia and the statute of the Ministry.

3. State administration in the field of transportation in the Autonomous Republics of Abkhazia and Ajara shall be carried out in accordance with the legislation of Georgia.

4. The Government of Georgia shall approve the list of technical regulations in accordance with the Product Safety and Free Movement Code. The list of technical regulations shall also include technical regulations in the field of transportation.

5. Control over the Land Transport Agency, the Maritime Transport Agency and the Civil Aviation Agency shall be carried out by the Ministry in accordance with procedures established by the legislation of Georgia.

Law of Georgia No 856 of 23 December 2008 - LHG I, No 40, 29.12.2008, Art. 281

Law of Georgia No 1922 of 3 November 2009 - LHG I, No 35, 19.11.2009, Art. 232

Law of Georgia No 2265 of 4 December 2009 - LHG I, No 45, 21.12.2009, Art. 334

Law of Georgia No 3748 of 26 October 2010 - LGH I, No 62, 5.11.2010, Art. 388

Law of Georgia No 4211 of 22 February 2011 - website, 10.3.2011

Law of Georgia No 2399 of 2 May 2014 - website, 16.5.2014

Article 5¹ - Internal investigation of transport accidents and incidents

1. The Ministry of Economy and Sustainable Development of Georgia shall conduct internal investigations of transport accidents and incidents occurring in the fields of civil aviation and maritime transportation (except for incidents provided for by paragraph 3 of this article).

2. For the purposes of internal investigation of transport accidents and incidents in the fields of civil aviation and maritime transportation, a bureau for the investigation of transport accidents and incidents in the fields of civil aviation and maritime transportation shall be established within the Ministry of Economy and Sustainable Development of Georgia.

 3. Incidents occurring in the field of ​​civil aviation, where a high probability of occurrence of an aviation accident or a serious incident is not identified, shall be investigated by the aircraft operator and/or airline, and if requested, they shall submit the investigation report to the Civil Aviation Agency and the Ministry.

4. The Minister of Economy and Sustainable Development of Georgia shall approve the procedure for internal investigations of transport accidents and incidents in the fields of civil aviation and maritime transportation (except for incidents provided for by paragraph 3 of this Law).

Law of Georgia No 6435 of 12 June 2012 - website, 25.6.2012

Law of Georgia No 823 of 12 July 2013 – website, 6.8.2013

Article 6 - International cooperation

1. The Ministry shall represent Georgia in international organisations on issues concerning the field of transportation.

2. International cooperation in the field of transportation shall be carried out in accordance with treaties and international agreements of Georgia and the legislation of Georgia.

Chapter III - Bodies of technical regulation in the field of transportation

Law of Georgia No 4211 of 22 February 2011 - website, 10.3.2011

Article 7 - Status and functions of the Agencies

1. Technical regulation in the field of transportation shall be carried out by the Land Transport, the Maritime Transport and the Civil Aviation Agencies ('the Agency'), legal entities under public law within the Ministry of Economy and Sustainable Development of Georgia, whose activities shall be supervised and controlled by the Ministry. The powers of the Agency shall apply only to the respective field.

2. The Agency shall be established in accordance with this Law and the Law of Georgia on Legal Entities under Public Law.

3. The Minister of Economy and Sustainable Development of Georgia shall approve the statute and the structure of the Agency.

4. The main functions of the Agency shall be to:

a) carry out activities within the powers granted by the legislation of Georgia;

b) perform the functions delegated to it in the field of aviation, land and maritime transportation, provided for by the international agreements of Georgia;

c) develop technical regulations on safety and securityin the course of movement of means of transport, transportation of passengers and cargo, as well as transportation of people and cargo in emergency situations;

d) supervise the implementation of technical regulations, except for the implementation of technical regulations in the field of special transport, which is supervised by the legal entity under public law called the Technical and Constructions Supervision Agency within the Ministry of Economy and Sustainable Development of Georgia;

e) perform state registration of airports (airfields), aircraft and sea vessels;

f) issue certificates confirming the right to exploit and repair aviation and sea equipment;

g) within its powers, issue permits determined by the Law of Georgia on Licences and Permits.

Law of Georgia No 856 of 23 December 2008 - LHG I, No 40, 29.12.2008, Art. 281

Law of Georgia No 1922 of 3 November 2009 - LHG I, No 35, 19.1.2009, Art. 232

Law of Georgia No 3748 of 26 October 2010 - LGH I, No 62, 5.11.2010, Art. 388

Law of Georgia No 4211 of 22 February 2011 - website, 10.3.2011

Law of Georgia No 2399 of 2 May 2014 - website, 16.5.2014

Article 8 - Director of the Agency

1. The Minister of Economy and Sustainable Development of Georgia shall appoint and may dismiss the director of the Agency.

2. The director of the Agency shall have three deputy directors, including one first deputy, who shall perform the duties of the director in the case of his/her absence. The director of the Agency shall appoint and may dismiss the deputy directors upon agreement with the Ministry.

3. The director of the Agency shall act within the powers granted by this Law and the statute of the Agency.

4. The director of the Agency shall be entitled to appoint and dismiss employees of the Agency in accordance with procedures established by the legislation of Georgia.

5. The director of the Agency, except for the director of the Land Transport Agency, shall issue a normative acts (orders) in the cases and within the frame established by this Law and other legislative acts. The Minister of Economy and Sustainable Development of Georgia shall issue normative acts regulating the field of land transport.

6. The director of the Agency shall approve a staff list by a legal act, and salaries shall be approved in agreement with the Minister of Economy and Sustainable Development of Georgia.

Law of Georgia No 856 of 23 December 2008 - LHG I, No 40, 29.12.2008, Art. 281

Law of Georgia No 1885 of 22 October 2009 - LHG I, No 33, 09.11.2009, Art. 207

Law of Georgia No 3748 of 26 October 2010 - LGH I, No 62, 5.11.2010, Art. 388

Law of Georgia No 4211 of 22 February 2011 - website, 10.3.2011

Article 9 - Assets and funding of the Agency

1. In order to achieve its objectives and perform assigned duties, the relevant assets shall be transferred to the Agency in accordance with procedures established by the legislation of Georgia.

2. The sources of funding of the Agency are:

a) funds allocated from the State Budget of Georgia;

b) fees;

c) revenue from fulfilling state orders;

d) revenue from work performed under agreements;

e) other revenues permitted by the legislation of Georgia.

3. Types of services provided by the Agency, terms, fee rates, as well as procedures and conditions for paying and refunding fees, shall be determined by a normative act of the Ministry of Economy and Sustainable Development of Georgia.

4. Funds and revenues provided for by paragraph 2 of this article shall be spent on performing the functions assigned to the Agency.

5. Fees and other revenues permitted by the legislation of Georgia shall be transferred to the account of the Agency.

Law of Georgia No 4211 of 22 February 2011 - website, 10.3.2011

Article 9¹ - State Control over the Agency

1. State control over the Agency shall be exercised by the Ministry of Economy and Sustainable Development of Georgia which shall have the right to request materials and information necessary for this purpose.

2. The Ministry shall be authorised to audit financial and economic activities of the Agency, as well as inspect the lawfulness and expediency of work carried out by the Agency.

3. The Ministry of Economy and Sustainable Development of Georgia shall be authorised to suspend and/or cancel unlawful decisions of the director of the Agency.

Law of Georgia No 4211 of 22 February 2011 - website, 10.3.2011

Article 9² - Activities that require approval

1. The Agency shall, upon approval by the Ministry, carry out the following activities:

a) acquire immovable property, alienate or encumber the assets owned by the Agency;

b) take out loans;

c) act as a surety;

d) determine the staff list and the payroll fund of the Agency;

 e) determine the threshold of financial resources to be allocated for material rewards of employees of the Agency, as well as the limits for fuel to be purchased and communication expenses to be incurred by the Agency;

f) other decisions to be made regarding the assets of the Agency if they are outside the ordinary activities of the Agency.

2. The approval of the Ministry of Finance of Georgia shall be necessary to carry out activities under paragraph 1(b) and (c) of this article.

3. In accordance with the legislation of Georgia, the Agency may transfer with the right to use/alienate to other persons state-owned property transferred to the Agency.

Law of Georgia No 4211 of 22 February 2011 - website, 10.3.2011

Chapter IV - Transitional and Final Provisions

Article 10 - Transitional provisions

1. The Unified Transportation Administration, a state agency subordinate to the Ministry of Economy and Sustainable Development of Georgia, shall be reorganised and legal entities under public law called the Land Transport Agency, the Maritime Transport Agency and the Civil Aviation Agency shall be established on its basis from 15 April 2011.

2. Before the finalisation of its reorganisation, the Unified Transportation Administration, a state subordinate agency of the Ministry of Economy and Sustainable Development of Georgia shall (before the approval of the statutes of the Agencies and the appointment of the directors of the Agencies) continue functioning within the powers granted before the entry of this Law into force.

3. The Land Transport, the Maritime Transport and the Civil Aviation Agencies, legal entities under public law within the Ministry of Economy and Sustainable Development of Georgia, shall be legal successors of the Unified Transportation Administration, a state subordinate agency of the Ministry of Economy and Sustainable Development of Georgia in the respective fields. The normative acts issued by the Unified Transportation Administration shall remain in force. The Maritime Transport Agency and the Civil Aviation Agency, legal entities under public law within the Ministry of Economy and Sustainable Development of Georgia, shall have the right to make changes and additions to the normative acts, as well as to repeal them in the respective fields and the Ministry shall have the same rights in the field of land transport.

4. The Land Transport Agency, the Maritime Transport Agency and the Civil Aviation Agency, legal entities under public law within the Ministry of Economy and Sustainable Development of Georgia, shall ensure the compliance of subordinate normative acts necessary for performing their functions with the legislation of Georgia within three months after their establishment.

5. Not later than 15 April 2011, the Minister of Economy and Sustainable Development of Georgia shall:

a) approve the statutes of and appoint the directors of the Land Transport Agency, the Maritime Transport Agency and the Civil Aviation Agency, legal entities under public law within the Ministry of Economy and Sustainable Development of Georgia;

b) transfer assets necessary for their functioning to the Land Transport Agency, the Maritime Transport Agency and the Civil Aviation Agency, legal entities under public law within the Ministry of Economy and Sustainable Development of Georgia (including assets recorded on the balance sheet of the Unified Transportation Administration, a state subordinate agency of the Ministry of Economy and Sustainable Development of Georgia);

c) approve types of services provided by the Land Transport Agency, the Maritime Transport Agency and the Civil Aviation Agency, legal entities under public law within the Ministry of Economy and Sustainable Development of Georgia, terms and fee rates, as well as procedures and conditions for paying and refunding the fees.

6. (Deleted).

7. (Deleted).

8. (Deleted).

9. (Deleted).

10. (Deleted).

Law of Georgia No 3748 of 26 October 2010 - LGH I, No 62, 5.11.2010, Art. 388

Law of Georgia No 4211 of 22 February 2011 - website, 10.3.2011

Article 11 - Repealed normative act

The Law of Georgia on the Procedure for State Administration and Regulation in the Field of Transportation (Legislative Herald of Georgia, No 24, 1.8.2001, Art. 93) of 20 July 2001 shall be deemed void upon entry into force of this Law.

Article 12 - Entry into force of the Law

This Law shall enter into force upon its promulgation.

President of Georgia                                                                                                                                     M. Saakashvili

Tbilisi

30 March 2007

No 4593–Iს