### §3611. Establishment, purposes, offices, and residence of Commission

(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 chapter referred to as the "Commission") is established as a wholly owned government corporation (as that term is used in chapter 91 of title 31) 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 considers 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.

(Pub. L. 96–70, title I, §1101, Sept. 27, 1979, 93 Stat. 456; Pub. L. 104–106, div. C, title XXXV, §3522(a), Feb. 10, 1996, 110 Stat. 638.)

#### **Editorial Notes**

#### References in Text

This chapter, referred to in subsec. (a), was in the original "this Act", meaning Pub. L. 96–70, Sept. 27, 1979, 93 Stat. 452, known as the Panama Canal Act of 1979, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 3601 of this title and Tables.

#### Amendments

1996—Pub. L. 104–106 amended section generally. Prior to amendment, section read as follows: "There is established in the executive branch of the United States Government an agency to be known as the Panama Canal Commission (hereinafter in this chapter referred to as the 'Commission'). The Commission shall, under the general supervision of the Board established by section 3612 of this title, be responsible for the maintenance and operation of the Panama Canal and the facilities and appurtenances related thereto. The authority of the President with respect to the Commission shall be exercised through the Secretary of Defense."

#### **Statutory Notes and Related Subsidiaries**

#### Recommendations by President on Changes to Panama Canal Commission Structure

Pub. L. 102–484, div. C, title XXXV, §3522, Oct. 23, 1992, 106 Stat. 2657, provided that:

"(a) Report.—The President shall conduct a study and, if warranted, develop a plan setting forth recommendations for such changes, if any, to the Panama Canal Commission for the operation of the Panama Canal during the period before the termination of the Panama Canal Treaty of 1977 as the President determines would facilitate and encourage the operation of the canal through an autonomous entity under the Government of Panama after the transfer of the canal on December 31, 1999, pursuant to the Panama Canal Treaty of 1977 and related agreements. The President shall submit the study and, if warranted, plan to Congress, together with a legislative proposal containing any changes to existing law required to implement the plan, not later than one year after the date of the enactment of this Act [Oct. 23, 1992].

"(b) Preparation of Plan.—Recommendations to the President for purposes of the study and plan required by subsection (a) shall be prepared with the participation of a representative of each of the following:

"(1) The Secretary of State.

"(2) The Secretary of Defense.

"(3) The Secretary of the Treasury.

"(4) The Secretary of Commerce.

"(5) The Secretary of Transportation.

"(6) The Panama Canal Commission.

"(c) Plan To Be Consistent With Panama Canal Treaty.—The study and, if warranted, plan submitted by the President pursuant to subsection (a) shall be consistent with the Panama Canal Treaty of 1977 and related agreements."

#### Report by Comptroller General on Changes to Panama Canal Commission Structure

Pub. L. 102–484, div. C, title XXXV, §3523, Oct. 23, 1992, 106 Stat. 2658, provided that:

"(a) Report.—The Comptroller General shall submit to Congress a report analyzing the effectiveness of the fiscal, operational, and management structure of the Panama Canal Commission and setting forth recommendations for such changes to that structure as the Comptroller General determines would, if implemented, enable the Commission to operate more efficiently and, thereby, serve as a model for the Government of Panama for the operation of the Panama Canal after the transfer of the Panama Canal on December 31, 1999, pursuant to the Panama Canal Treaty of 1977 and related agreements. The Comptroller General shall submit the report to Congress not later than one year after the date of the enactment of this Act [Oct. 23, 1992].

"(b) Preparation of Report.—In developing the report required by subsection (a), the Comptroller General shall seek the views of each of the following:

"(1) The Secretary of State.

"(2) The Secretary of Defense.

"(3) The Secretary of the Treasury.

"(4) The Secretary of Commerce.

"(5) The Secretary of Transportation.

"(6) The Panama Canal Commission.

"(c) Report To Be Consistent With Panama Canal Treaty.—The recommendations in the report submitted by the Comptroller General pursuant to subsection (a) shall be consistent with the Panama Canal Treaty of 1977 and related agreements."