Section 1. This Act may be cited as the ``Panama Canal Amendments 
Act of 1994''.
    Sec. 2. Section 1101 of the Panama Canal Act of 1979 (22 U.S.C. 
3611) is amended to read as follows:

  ``establishment, purposes, offices, and residence of the commission

    ``Sec. 1101. (a) For the purposes of managing, operating, and 
maintaining the Panama Canal and its complementary works, installations 
and equipment, and of conducting operations incident thereto, in 
accordance with the Panama Canal Treaty of 1977 and related agreements, 
the Panama Canal Commission (hereinafter in this Act referred to as the 
`Commission') is established as a wholly owned government corporation 
(as that term is used in chapter 91 of title 31, United States Code) 
within the executive branch of the Government of the United States. The 
authority of the President with respect to the Commission shall be 
exercised through the Secretary of Defense.
    ``(b) The principal office of the Commission shall be located in 
the Republic of Panama in one of the areas made available for use of 
the United States under the Panama Canal Treaty of 1977 and related 
agreements, but the Commission may establish branch offices in such 
other places as it deems necessary or appropriate for the conduct of 
its business. Within the meaning of the laws of the United States 
relating to venue in civil actions, the Commission is an inhabitant and 
resident of the District of Columbia and the eastern judicial district 
of Louisiana.''.
    Sec. 3. Section 1102 of the Panama Canal Act of 1979 (22 U.S.C. 
3612) is amended by striking so much as precedes subsection (b) and 
inserting the following:

                          ``supervisory board

    ``Sec. 1102.(a) The Commission shall be supervised by a Board 
composed of nine members, one of whom shall be the Secretary of Defense 
or an officer of the Department of Defense designated by the Secretary. 
Not less than five members of the Board shall be nationals of the 
United States and the remaining members of the Board shall be nationals 
of the Republic of Panama. Three members of the Board who are nationals 
of the United States shall hold no other office in or be employed by 
the Government of the United States, and shall be chosen for the 
independent perspective they can bring to the Commission's affairs. 
Members of the Board who are the nationals of the United States shall 
cast their votes as directed by the Secretary of Defense or the 
designee of the Secretary.''.
    Sec. 4. Section 1102 of the Panama Canal Act of 1979 (22 U.S.C. 
3612) is amended by adding at the end the following:
    ``(d)(1) In order to enhance the prestige of the Commission in the 
world shipping community and allow for the exchange of varied 
perspectives between the Board and distinguished international guests 
in the important deliberations of the Commission, the United States and 
the Republic of Panama may each invite to attend meetings of the Board, 
as a designated international advisor to the Board, one individual 
chosen for the independent perspective that individual can bring to the 
Commission's affairs, and who--
            ``(A) is not a national of either the United States or 
        Panama;
            ``(B) does not represent any user or customer of the Panama 
        Canal, or any particular interest group or nation; and
            ``(C) does not have any financial interest which could 
        constitute actual or apparent conflict with regard to his 
        relationship with the Board or the Commission.
    ``(2) Such designated international advisors may be compensated by 
the Commission in the same manner and under the same circumstances as 
apply under subsection (b) with regard to members of the Board. 
Designated international advisors shall have no vote on matters pending 
before the Board.''.
    Sec. 5. The Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.) is 
amended by adding after section 1102 the following:

                   ``general powers of the commission

    ``Sec. 1102a. (a) The Commission--
            ``(1) may adopt, alter, and use a corporate seal, which 
        shall be judicially noticed;
            ``(2) may by action of the Board of Directors adopt, amend, 
        and repeal bylaws governing the conduct of its general business 
        and the performance of the powers and duties granted to or 
        imposed upon it by law;
            ``(3) may sue and be sued in its corporate name, except 
        that--
                    ``(A) its amenability to suit is limited by Article 
                VIII of the Panama Canal Treaty of 1977, section 1401 
                of this Act, and otherwise by law;
                    ``(B) an attachment, garnishment, or similar 
                process may not be issued against salaries or other 
                moneys owed by the Commission to its employees except 
                to the extent specifically authorized by the laws of 
                the United States; and
                    ``(C) it is exempt from the payment of interest on 
                claims and judgments;
            ``(4) may enter into contracts, leases, agreements, or 
        other transactions;
            ``(5) may determine the character of, and necessity for, 
        its obligations and expenditures and the manner in which they 
        shall be incurred, allowed, and paid, and incur, allow, and pay 
        them, subject to pertinent provisions of law generally 
        applicable to Government corporations; and
            ``(6) may purchase, lease, or otherwise acquire, and hold, 
        own, maintain, work, develop, and, subject to section 1504, 
        sell, lease, exchange, convey, mortgage, or otherwise dispose 
        of, and deal in, lands, leaseholds, and any interest, estate, 
        or rights in real, personal, or mixed property, and any 
        franchises, concessions, rights, licenses, or privileges 
        necessary or appropriate for any of the purposes expressed in 
        this Act.
    ``(b) The Commission shall have the priority of the United States 
in the payment of debts out of bankrupt estates.

                    ``specific powers of commission

    ``Sec. 1102b. (a) Subject to the Panama Canal Treaty of 1977 and 
related agreements, and to chapter 91 of title 31, United States Code, 
popularly known as the Government Corporation Control Act, the 
Commission may--
            ``(1) manage, operate, and maintain the Panama Canal;
            ``(2) construct or acquire, establish, maintain, and 
        operate docks, wharves, piers, harbor terminal facilities, 
        shops, yards, marine railways, salvage and towing facilities, 
        fuel-handling facilities, motor-transportation facilities, 
        power systems, water systems, a telephone system, construction 
        facilities, living quarters and other buildings, guest houses, 
        warehouses, storehouses, a printing plant, and manufacturing, 
        processing or service facilities in connection therewith, 
        recreational facilities, and other business activities, 
        facilities, and appurtenances necessary and appropriate for the 
        accomplishment of the purposes of this Act;
            ``(3) makes sales, and furnish services, equipment, 
        supplies and materials, as contemplated by this Act, to--
                    ``(A) vessels;
                    ``(B) agencies of the Government of the United 
                States;
                    ``(C) employees of the Government of the United 
                States; and
                    ``(D) any other governments, agencies, persons, 
                corporations, or associations eligible to make such 
                purchases, or receive such services, equipment, 
                supplies, or materials under the laws prevailing at the 
                time and the policies heretofore or hereafter adopted 
                consistently with those laws;
            ``(4) use the United States mails in the same manner and 
        under the same conditions as the executive departments of the 
        Federal Government; and
            ``(5) take such actions as are necessary or appropriate to 
        carry out the powers specifically conferred upon it.''.
    Sec. 6. Section 1302 of the Panama Canal Act of 1979 (22 U.S.C. 
3712) is amended--
            (1) in subsection (c)(1) by striking ``and subject to 
        paragraph (2)'';
            (2) by striking paragraph (2);
            (3) by redesignating paragraph (3) as paragraph (2); and
            (4) by amending subsection (e) to read as follows:
    ``(e) In accordance with section 9104 of title 31, United States 
Code, the Congress shall review the annual budget of the Commission.''.
    Sec. 7. Section 1313 of the Panama Canal Act of 1979 (22 U.S.C. 
3723) is amended--
            (1) by striking the heading for the section and inserting 
        the following:

                              ``audits'';

            (2) in subsection (a) by striking ``Financial 
        transactions'' and inserting ``Subject to subsection (d), 
        financial transactions''; and
            (3) in subsection (b) in the first sentence by striking 
        ``The Comptroller General'' and inserting ``Subject to 
        subsection (d), the Comptroller General''; and
            (4) by adding at the end the following:
    ``(d) At the discretion of the Board provided for in section 1102, 
the Commission may hire independent auditors to perform, in lieu of the 
Comptroller General, the audit and reporting functions prescribed in 
subsections (a) and (b).
    ``(e) The audited financial statements of the Commission shall 
include assurances that the Commission will be in a position to meet 
its financial liabilities on December 31, 1999.''.
    Sec. 8. Section 1601 of the Panama Canal Act of 1979 (22 U.S.C. 
3791) is amended to read as follows:

         ``prescription of measurement rules and rates of tolls

    ``Sec. 1601. The Commission may, subject to the provisions of this 
Act, prescribe and from time to time change--
            ``(1) the rules for the measurement of vessels for the 
        Panama Canal; and
            ``(2) the tolls that shall be levied for use of the Panama 
        Canal.''.
    Sec. 9. Section 1604 of the Panama Canal Act of 1979 (22 U.S.C. 
3794) is amended--
            (1) in subsection (a) in the first sentence by striking 
        ``1601(a)'' and inserting ``1601'';
            (2) by amending subsection (c) to read as follows:
    ``(c) After the proceedings have been conducted pursuant to 
subsection (a) and (b) of this section, the Commission may change the 
rules of measurement or rates of tolls, as the case may be. The 
Commission shall, however, publish notice of such change in the Federal 
Register not less than 30 days before the effective date of the 
change.''; and
            (3) by striking subsections (d) and (e) and redesignating 
        subsection (f) as subsection (d).
    Sec. 10. The Panama Canal Act of 1979 is amended--
            (1) in section 1205 (22 U.S.C. 3645) in the last sentence 
        by striking ``appropriation'' and inserting ``fund''.
            (2) in section 1303 (22 U.S.C. 3713) by striking ``The 
        authority of this section may not be used for administrative 
        expenses.'';
            (3) in section 1321(d) (22 U.S.C. 3721(d)) in the second 
        sentence by striking ``appropriations or'';
            (4) in section 1401(c) (22 U.S.C. 3761(c)) by striking 
        ``appropriated for or'';
            (5) in section 1415 (22 U.S.C. 3775) in the second sentence 
        by striking ``appropriated or''; and
            (6) in section 1416 (22 U.S.C. 3776) in the third sentence 
        by striking ``appropriated or''.
    Sec. 11. Section 9101(3) of title 31, United States Code, is 
amended by adding at the end the following:
            ``(O) the Panama Canal Commission.''.
Panama Canal Amendments Act of 1994 - Amends the Panama Canal Act of 1979 to reestablish the Panama Canal Commission as a wholly owned government corporation within the executive branch.
Panama Canal Amendments Act of 1994