S. 3700: FAA SMS Compliance Review Act of 2026

The FAA SMS Compliance Review Act of 2026 is a piece of legislation aimed at improving safety management systems (SMS) within the Federal Aviation Administration (FAA). It establishes an independent expert review panel to assess and make recommendations regarding the FAA's SMS, which is vital for ensuring aviation safety. Here’s a breakdown of the key components of the bill:

Review Panel Establishment

Within 60 days after the bill becomes law, the FAA Administrator is required to form an independent panel of experts. This panel will review FAA policies and practices to improve the SMS implementation across the agency.

Review Objectives

The overview of the review will cover several important aspects:

• The compliance of the FAA’s SMS with relevant FAA orders and policies.
• The safety enhancements achieved from previous SMS implementations.
• The effectiveness of the SMS, focusing on its components:
• Safety policy
• Safety risk management
• Safety assurance
• Safety promotion
• The extent to which the FAA’s safety culture aligns with international standards.
• The performance of the FAA’s internal audit process regarding SMS.
• The integration of SMS across various FAA sectors.
• The training provided to FAA personnel on SMS and its components.
• The efficacy of voluntary safety reporting programs within the FAA.
• Recommendations for potential updates to international safety program standards.
• Any other relevant matters deemed necessary by the Administrator.

Composition of the Review Panel

The review panel will consist of diverse members, including:

• Two representatives from NASA with SMS expertise.
• Five qualified representatives from aviation labor organizations, such as pilot unions and air traffic controller groups.
• At least five independent safety management experts with substantial industry experience.
• Two air carrier employees experienced in SMS administration.
• Two individuals from aerospace industry entities involved in SMS.
• One representative from the United States Mission to the International Civil Aviation Organization (ICAO).
• One representative from the National Transportation Safety Board as a non-voting member.

Panel Recommendations and Reporting

The review panel is tasked with issuing recommendations based on their findings to the FAA Administrator. They must submit a report to Congress detailing their findings within 180 days after their first meeting. This report will include any dissenting opinions from panel members.

Access to Information

The panel will have the authority to access FAA premises, inspect records, and interview employees as needed to carry out their review. Members who are not federal employees must agree to protect any non-public information they access during their work.

Non-Concurrence Reporting

If the FAA Administrator does not agree with any of the panel's recommendations, they must provide a detailed explanation publicly within six months of receiving these recommendations.

Ongoing Congressional Oversight

The FAA Administrator must keep relevant congressional committees informed about the implementation status of the panel’s recommendations during periodic reports after the initial recommendations are submitted.

Inapplicability of FACA

The review panel is not subject to the Federal Advisory Committee Act, streamlining its operations to improve efficiency.

Definitions

Key terms such as "Administrator," "FAA," "ICAO," and "SMS" are defined in the bill to clarify the scope and responsibilities outlined in its provisions.

Relevant Companies

• BA - The Boeing Company: Boeing may experience impacts due to increased scrutiny on safety management systems and compliance with FAA regulations.
• AAL - American Airlines Group Inc.: American Airlines could be affected by new compliance requirements stemming from the review panel’s recommendations.
• DAL - Delta Air Lines, Inc.: Similar to American Airlines, Delta may need to adjust processes or policies based on new safety management measures proposed by the FAA.