I

104TH CONGRESS

1ST SESSION H. R. 1348

To amend the Panama Canal Act of 1979 to reconstitute the Panama Canal

Commission as a United States Government corporation, and for other

purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 29, 1995

Mr. SPENCE (for himself, Mr. DELLUMS, Mr. BATEMAN, and Mr. TAYLOR of

Mississippi) (all by request) introduced the following bill; which was referred to the Committee on National Security

A BILL

To amend the Panama Canal Act of 1979 to reconstitute

the Panama Canal Commission as a United States Government corporation, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. This Act may be cited as the ‘‘Panama

4 Canal Amendments Act of 1995’’.

5 SEC. 2. Section 1101 of the Panama Canal Act of

6 1979 (22 U.S.C. 3611) is amended to read as follows:
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1 ‘‘ESTABLISHMENT, PURPOSES, OFFICES, AND RESIDENCE

2 OF THE COMMISSION

3 ‘‘SEC. 1101. (a) For the purposes of managing, oper4 ating, and maintaining the Panama Canal and its com5 plementary works, installations and equipment, and of

6 conducting operations incident thereto, in accordance with

7 the Panama Canal Treaty of 1977 and related agree8 ments, the Panama Canal Commission (hereinafter in this

9 Act referred to as the ‘Commission’) is established as a

10 wholly owned government corporation (as that term is

11 used in chapter 91 of title 31, United States Code) within

12 the executive branch of the Government of the United

13 States. The authority of the President with respect to the

14 Commission shall be exercised through the Secretary of

15 Defense.

16 ‘‘(b) The principal office of the Commission shall be

17 located in the Republic of Panama in one of the areas

18 made available for use of the United States under the

19 Panama Canal Treaty of 1977 and related agreements,

20 but the Commission may establish branch offices in such

21 other places as it deems necessary or appropriate for the

22 conduct of its business. Within the meaning of the laws

23 of the United States relating to venue in civil actions, the

24 Commission is an inhabitant and resident of the District
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1 of Columbia and the eastern judicial district of Louisi2 ana.’’.

3 SEC. 3. Section 1102 of the Panama Canal Act of

4 1979 (22 U.S.C. 3612) is amended by striking so much

5 as precedes subsection (b) and inserting the following:

6 ‘‘SUPERVISORY BOARD

7 ‘‘SEC. 1102. (a) The Commission shall be supervised

8 by a Board composed of nine members, one of whom shall

9 be the Secretary of Defense or an officer of the Depart10 ment of Defense designated by the Secretary. Not less

11 than five members of the Board shall be nationals of the

12 United States and the remaining members of the Board

13 shall be nationals of the Republic of Panama. Three mem14 bers of the Board who are nationals of the United States

15 shall hold no other office in or be employed by the Govern16 ment of the United States, and shall be chosen for the

17 independent perspective they can bring to the Commis18 sion’s affairs. Members of the Board who are nationals

19 of the United States shall cast their votes as directed by

20 the Secretary of Defense or a designee of the Secretary

21 of Defense.’’.

22 SEC. 4. Section 1102 of the Panama Canal Act of

23 1979 (22 U.S.C. 3612) is amended by adding at the end

24 the following:

25 ‘‘(d)(1) In order to enhance the prestige of the Com26 mission in the world shipping community and allow for
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1 the exchange of varied perspectives between the Board and

2 distinguished international guests in the important delib3 erations of the Commission, the Government of the United

4 States and the Republic of Panama may each invite to

5 attend meetings of the Board, as a designated inter6 national advisor to the Board, one individual chosen for

7 the independent perspective that individual can bring to

8 the Commission’s affairs, and who—

9 ‘‘(A) is not a national of either the United

10 States or Panama;

11 ‘‘(B) does not represent any user or customer

12 of the Panama Canal, or any particular interest

13 group or nation; and

14 ‘‘(C) does not have any financial interest which

15 could constitute an actual or apparent conflict with

16 regard to the relationship of the individual with the

17 Board of the Commission.

18 ‘‘(2) Such designated international advisors may be

19 compensated by the Commission in the same manner and

20 under the same circumstances as apply under subsection

21 (b) with regard to members of the Board. Such designated

22 international advisors shall have no vote on matters pend23 ing before the Board.’’.
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1 SEC. 5. The Panama Canal Act of 1979 (22 U.S.C.

2 3601 et seq.) is amended by adding after section 1102

3 the following new sections:

4 ‘‘GENERAL POWERS OF THE COMMISSION

5 ‘‘SEC. 1102a. (a) The Commission, subject to the

6 Panama Canal Treaty of 1977 and related agreement, and

7 to chapter 91 of title 31, United States Code, popularly

8 known as the Government Corporation Control Act—

9 ‘‘(1) may adopt, alter, and use a corporate seal,

10 which shall be judicially noticed;

11 ‘‘(2) may by action of the Board of Directors

12 adopt, amend, and repeal bylaws governing the con13 duct of its general business and the performance of

14 the powers and duties granted to or imposed upon

15 it by law;

16 ‘‘(3) may sue and be sued in its corporate

17 name, except that—

18 ‘‘(A) its amenability to suit is limited by

19 Article VIII of the Panama Canal Treaty of

20 1977, section 1401 of this Act, and otherwise

21 by law;

22 ‘‘(B) an attachment, garnishment, or simi23 lar process may not be issued against salaries

24 or other moneys owed by the Commission to its

25 employees except as provided by section 5520a

26 of title 5, United States Code, and section 459,
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1 461, and 462 of the Social Security Act (42

2 U.S.C. 659, 661, 662), or as otherwise specifi3 cally authorized by the laws of the United

4 States; and

5 ‘‘(C) it is exempt from the payment of in6 terest on claims and judgments;

7 ‘‘(4) may enter into contracts, leases, agree8 ments, or other transactions; and

9 ‘‘(5) may determine the character of, and neces10 sity for, its obligations and expenditures and the

11 manner in which they shall be incurred, allowed, and

12 paid, and may incur, allow, and pay them, subject

13 to pertinent provisions of law generally applicable to

14 Government corporations.

15 ‘‘(b) The Commission shall have the priority of the

16 Government of the United States in the payment of debts

17 out of bankrupt estates.

18 ‘‘SPECIFIC POWERS OF COMMISSION

19 ‘‘SEC. 1102b. (a) Subject to the Panama Canal Trea20 ty of 1977 and related agreements, and to chapter 91 of

21 title 31, United States Code, popularly known as the Gov22 ernment Corporation Control Act, the Commission may—

23 ‘‘(1) manage, operate, and maintain the Pan24 ama Canal;

25 ‘‘(2) construct or acquire, establish, maintain,

26 and operate docks, wharves, piers, shoreline facili-
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1 ties, shops, yards, marine railways, salvage and tow2 ing facilities, fuel-handling facilities, motor transpor3 tation facilities, power systems, water systems, a

4 telephone system, construction facilities, living quar5 ters and other buildings, warehouses, storehouses, a

6 printing plant, and manufacturing, processing, or

7 service facilities in connection therewith, recreational

8 facilities, and other activities, facilities, and appur9 tenances necessary and appropriate for the accom10 plishment of the purposes of this Act;

11 ‘‘(3) use the United States mails in the same

12 manner and under the same conditions as the execu13 tive department of the Federal Government; and

14 ‘‘(4) take such actions as are necessary or ap15 propriate to carry out the powers specifically con16 ferred upon it.’’.

17 SEC. 6. Section 1302 of the Panama Canal Act of

18 1979 (22 U.S.C. 3712) is amended—

19 (1) in subsection (c)(1) by striking ‘‘and subject

20 to paragraph (2)’’;

21 (2) by striking paragraph (2);

22 (3) by redesignating paragraph (3) as para23 graph (2); and

24 (4) by amending subsection (e) to read as fol25 lows:
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1 ‘‘(e) In accordance with section 9104 of title 31,

2 United States Code, the Congress shall review the annual

3 budget of the Commission.’’.

4 SEC. 7. Section 1313 of the Panama Canal Act of

5 1979 (22 U.S.C. 3723) is amended—

6 (1) by striking the heading for the section and

7 inserting the following:

8 ‘‘AUDITS’’;

9 (2) in subsection (a) by striking ‘‘Financial

10 transactions’’ and inserting ‘‘Subject to subsection

11 (d), financial transactions’’;

12 (3) in subsection (b) in the first sentence by

13 striking ‘‘The Comptroller General’’ and inserting

14 ‘‘Subject to subsection (d), the Comptroller Gen15 eral’’; and

16 (4) by adding at the end the following new sub17 sections:

18 ‘‘(d) At the discretion of the Board provided for in

19 section 1102, the Commission may hire independent audi20 tors to perform, in lieu of the Comptroller General, the

21 audit and reporting functions prescribed in subsections (a)

22 and (b).

23 ‘‘(e) The audited financial statements of the Commis24 sion shall include assurances that the Commission will be

25 in a position to meet its financial liabilities on December

26 31, 1999.’’.
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1 SEC. 8. Section 1601 of the Panama Canal Act of

2 1979 (22 U.S.C. 3791) is amended to read as follows:

3 ‘‘PRESCRIPTION OF MEASUREMENT RULES AND RATES OF

4 TOLLS

5 ‘‘SEC. 1601. The Commission may, subject to the

6 provisions of this Act, prescribe and from time to time

7 change—

8 ‘‘(1) the rules for the measurement of vessels

9 for the Panama Canal; and

10 ‘‘(2) the tolls that shall be levied for use of the

11 Panama Canal.’’.

12 SEC. 9. Section 1604 of the Panama Canal Act of

13 1979 (22 U.S.C. 3794) is amended—

14 (1) in subsection (a) in the first sentence by

15 striking ‘‘1601(a)’’ and inserting ‘‘1601’’;

16 (2) by amending subsection (c) to read as fol17 lows:

18 ‘‘(c) After the proceedings have been conducted pur19 suant to subsection (a) and (b) of this section, the Com20 mission may change the rules of measurement or rates of

21 tolls, as the case may be. The Commission shall, however,

22 publish notice of such change in the Federal Register not

23 less than 30 days before the effective date of the change.’’;

24 and

25 (3) by striking subsections (d) and (e) and re26 designating subsection (f) as subsection (d).
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1 SEC. 10. The Panama Canal Act of 1979 is

2 amended—

3 (1) in section 1205 (22 U.S.C 3645) in the last

4 sentence by striking ‘‘appropriation’’ and inserting

5 ‘‘fund’’;

6 (2) in section 1303 (22 U.S.C. 3713) by strik7 ing ‘‘The authority of this section may not be used

8 for administrative expenses.’’;

9 (3) in section 1321(d) (22 U.S.C. 3721(d)) in

10 the second sentence by striking ‘‘appropriations or’’;

11 (4) in section 1401(c) (22 U.S.C. 3761(c)) by

12 striking ‘‘appropriated for or’’;

13 (5) in section 1415 (22 U.S.C. 3775) by strik14 ing ‘‘appropriated or’’; and

15 (6) in section 1416 (22 U.S.C. 3776) in the

16 third sentence by striking ‘‘appropriated or’’.

17 SEC. 11. Section 9101(3) of title 31, United States

18 Code, is amended by adding at the end the following:

19 ‘‘(O) the Panama Canal Commission.’’.

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