I
105TH CONGRESS
1ST SESSION
H. R. 1344
To amend the Panama Canal Act of 1979, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 16, 1997
Mr. BATEMAN (for himself and Mr. ABERCROMBIE) (both by request), intro-
duced the following bill; which was referred to the Committee on National
Security
A BILL
To amend the Panama Canal Act of 1979, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. ADMINISTRATOR.
Section 1103 of the Panama Canal Act of 1979 (22
U.S.C. 3613) is amended—
(1) by adding a new subsection (c) to read as
follows:
‘‘(c) Congress consents to the Administrator of the
Panama Canal Commission accepting an appointment by
the Government of Panama to the position of Adminis-
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trator of the Panama Canal Authority, for which the con-
sent of Congress is required by the 8th clause of section
9 of article I of the Constitution of the United States,
relating to acceptance of emolument, office or title from
a foreign State, provided that in his capacity as Adminis-
trator of the Panama Canal Authority, he shall serve with-
out compensation, except for travel and entertainment ex-
penses, including per diem payments.’’;
(2) by adding a new subsection (d) to read as
follows:
‘‘(d) An Administrator of the Panama Canal Com-
mission, who is also appointed by the Government of Pan-
ama as the Administrator of the Panama Canal Authority,
shall be exempt from the Foreign Agents Registration Act
of 1938, as amended.’’; and
(3) by adding a new subsection (e) to read as
follows:
‘‘(e) An Administrator of the Panama Canal Commis-
sion, who is also appointed officially by the Government
of Panama as the Administrator of the Panama Canal Au-
thority, shall be exempt from the restrictions of—
‘‘(1) sections 203 and 205 of title 18, United
States Code, when officially acting as an agent or
attorney of or otherwise representing the Panama
Canal Authority;
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‘‘(2) section 207 of title 18, United States
Code, following termination of appointment as Ad-
ministrator of the Panama Canal Commission at
noon, December 31, 1999, but only for official ac-
tions as an officer of the Panama Canal Authority;
‘‘(3) section 208 of title 18, United States
Code, when disqualification is required only because
of service as an officer, director, or employee of the
Panama Canal Authority and the arrangement for
future employment with the Authority that arises
out of the appointment as Administrator of the Au-
thority. All other financial interests that are dis-
qualifying under section 208(a) shall remain dis-
qualifying but eligible for waiver or exemption under
section 208(b); and
‘‘(4) sections 501(a) and 502(a)(4) of title 5,
United States Code, Appendix, for compensation re-
ceived for, and service in, the position of the Admin-
istrator of the Panama Canal Authority.’’.
SEC. 2. TRANSITION SEPARATION INCENTIVE PAYMENT.
Title I of the Panama Canal Act of 1979 is amended
in chapter 2 (22 U.S.C. 3641 et seq.) by adding at the
end of subchapter III the following new section:
‘‘TRANSITION SEPARATION INCENTIVE PAYMENT
‘‘SEC. 1233. (a) Notwithstanding section 663 of Pub-
lic Law 104–208, the Commission may offer and pay a
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transition separation incentive to an employee if, in its sole
discretion, the Commission determines such separation is
necessary to the successful transfer of the Canal enter-
prise by the United States to the Republic of Panama,
as required by the Panama Canal Treaty of 1977.
‘‘(b) For the purpose of this section, the term
‘employee’ means an individual serving in the Republic of
Panama in a position with the Commission for a continu-
ous period of at least 3 years under an appointment with-
out time limitation, who is covered under either the Civil
Service Retirement System (CSRS) or the Federal Em-
ployees’ Retirement System (FERS), but does not in-
clude—
‘‘(1) a reemployed annuitant under chapter 83
or chapter 84 of title 5, United States Code; or
‘‘(2) an employee having a disability on the
basis of which such employee is or would be eligible
for disability retirement under the applicable retire-
ment system referenced in paragraph (1).
‘‘(3) an employee who is in receipt of a specific
notice of involuntary separation for misconduct or
unacceptable performance;
‘‘(4) an employee who, upon completing an ad-
ditional period of service as referred to in section
3(b)(2)(B)(ii) of the Federal Workforce Restructur-
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‘‘(C) a description of how such incentive pay-
ments will facilitate the successful transfer of the
Panama Canal to the Republic of Panama.
‘‘(d)(1) A transition separation incentive payment
may be paid to any employee only to the extent necessary
to facilitate the successful transfer of the Panama Canal
as identified by the strategic plan.
‘‘(2) A separation incentive payment—
‘‘(A) shall be paid in a lump sum after the em-
ployee’s separation;
‘‘(B) shall be paid from the Panama Canal Re-
volving Fund;
‘‘(C) shall be in an amount determined by the
Administrator not to exceed 50 percent of basic pay;
‘‘(D) may not be made except in the case of any
qualifying 
employee 
who 
voluntarily 
separates
(whether by retirement or resignation) within 180
days of the date of enactment of this provision;
‘‘(E) shall not be a basis for payment, and shall
not be included in the computation, of any other
type of Government benefit; and
‘‘(F) shall not be taken into account in deter-
mining the amount of any severance pay to which
the employee may be entitled under section 5595 of
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title 5, United States Code, based on any other sepa-
ration.
‘‘(e) The decision to exercise or forego the authority
to offer payments under this section shall not be subject
to challenge under any statutory procedure or any agency
or negotiated grievance procedure.
‘‘(f) ADDITIONAL AGENCY CONTRIBUTIONS TO THE
RETIREMENT FUND.—
‘‘(1) IN GENERAL.—In addition to any other
payments which it is required to make under sub-
chapter III of chapter 83 of title 5, United States
Code, an agency shall remit to the Office of Person-
nel Management for deposit in the Treasury of the
United States to the credit of the Civil Service Re-
tirement and Disability Fund an amount equal to 15
percent of the final basic pay of each employee of
the agency who is covered under subchapter III of
chapter 83 or chapter 84 of title 5, United States
Code, to whom a transition separation incentive has
been paid under this section.
‘‘(2) DEFINITION.—For the purpose of para-
graph (1), the term ‘final basic pay’, with respect to
an employee, means the total amount of basic pay
which would be payable for a year of service by such
employee, computed using the employee’s final rate
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of basic pay, and, if last serving on other than a
full-time basis, with appropriate adjustment there-
for.
‘‘(g) EFFECT OF SUBSEQUENT EMPLOYMENT WITH
THE GOVERNMENT.—An individual who has received a
transition separation incentive payment under this section
and accepts any employment for compensation with the
Government of the United States, or who works for any
agency of the United States Government through a per-
sonal services contract, within 5 years after the date of
the separation on which the payment is based shall be re-
quired to pay, prior to the individual’s first day of employ-
ment, the entire amount of the incentive payment to the
Treasury of the United States.’’.
SEC. 3. PROCUREMENT; BOARD OF CONTRACT APPEALS.
Title III of the Panama Canal Act of 1979 is amend-
ed by adding a new chapter 1 to read as follows:
‘‘CHAPTER 1—PROCUREMENT
‘‘PROCUREMENT SYSTEM
‘‘SEC. 3101. (a) The Commission shall establish a
comprehensive procurement system by regulation which
shall be entitled the Panama Canal Acquisition Regula-
tion. The regulation shall—
‘‘(1) preserve the fundamental operating prin-
ciples and procedures contained in the Federal Ac-
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quisition Regulation while reflecting efficient com-
mercial standards of practice and preparing the Ca-
nal’s procurement system for a smooth transfer to
administration by the Government of Panama pur-
suant to the Panama Canal Treaty of 1977;
‘‘(2) be the subject of consultation with the Ad-
ministrator of the Office of Federal Procurement
Policy;
‘‘(3) be supplemented by a regulation contain-
ing those provisions and terms specifically required
by United States laws, which shall include a transi-
tional list of provisions of law that the Commission
determines shall be inapplicable to itself, which shall
not include those laws listed in subsection (b), below:
Provided, That prior to December 31, 1999, nothing
in this Act shall be construed to authorize the waiver
of civil rights, environmental or labor standards laws
applicable to Federal contracts. Such list shall not
be effective prior to July 1, 1998, and shall be effec-
tive only through noon on December 31, 1999, at
which time United States management of the Pan-
ama Canal will end; and
‘‘(4) take effect upon publication in the Federal
Register, not later than January 1, 1999.
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‘‘(b) subject to section 3102, the Commission shall
continue to be governed by the Contract Disputes Act of
1978, as amended (41 U.S.C. 601–613), section 2741(a)
of the Deficit Reduction Act of 1984 (‘Procurement Pro-
test System’), as amended (31 U.S.C. 3551–3556), and
the Procurement Integrity Act, as amended (41 U.S.C.
423).
‘‘PANAMA CANAL BOARD OF CONTRACT APPEALS
‘‘SEC. 3102. (a) Except as provided elsewhere in this
section, a Panama Canal Board of Contract Appeals shall
be established and appointed by the Secretary of Defense,
in consultation with the Commission in accordance with,
and shall function pursuant to, the provisions of the Con-
tract Disputes Act of 1978.
‘‘(b) The Panama Canal Board of Contract Appeals
shall consist of three full-time members and, in addition
to the requirements of 41 U.S.C. 607(b)(1), at least one
member of the Panama Canal Board of Contract Appeals
shall be licensed to practice law in the Republic of Pan-
ama. Individuals appointed to the Panama Canal Board
of Contract Appeals shall take an oath of office, the form
of which shall be prescribed by the Secretary of Defense,
notwithstanding any other provision of law.
‘‘(c) Notwithstanding any other provision of law, the
Panama Canal Board of Contract Appeals shall have ex-
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clusive jurisdiction to decide any appeal from a decision
of a contracting officer under 41 U.S.C. 607(d).
‘‘(d) Except as provided elsewhere in this section, and
notwithstanding any other provision of law, the Panama
Canal Board of Contract Appeals shall also have exclusive
jurisdiction to decide all protests by interested parties con-
cerning procurement actions in accordance with the re-
quirements of 31 U.S.C. 3551 through 3555. Its jurisdic-
tion to decide all such protests shall be exclusive. Accord-
ingly, for the Panama Canal Commission—
‘‘(1) except as provided elsewhere in this sec-
tion, wherever ‘Comptroller General’ appears in 31
U.S.C. 3551 through 3555 it shall refer, instead, to
the Panama Canal Board of Contract Appeals;
‘‘(2) the reference to ‘Comptroller General’ in
31 U.S.C. 3553(d)(3)(C)(ii) shall be, instead, to the
Panama Canal Board of Contract Appeals and the
Comptroller General of the United States;
‘‘(3) add the Comptroller General of the United
States to the first sentence of 31 U.S.C. 3554(e)(1)
after ‘House of Representatives’;
‘‘(4) add the Comptroller General of the United
States to the first sentence of 31 U.S.C. 3554(e)(2)
after ‘Congress’; and
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‘‘(5) none of the provisions of 31 U.S.C. 3556
shall apply to the Commission except nothing in this
section shall affect the right of any interested party
to file a protest with the cognizant contracting offi-
cer.
‘‘(e) The Panama Canal Board of Contract Appeals
shall, in accordance with the provisions of this section,
prescribe such written procedures as may be necessary for
the expeditious decision of appeals and protests under sub-
sections (c) and (d).
‘‘(f) The Panama Canal Board of Contract Appeals
shall begin to function as soon as it has been constituted
and has issued the procedures referred to in subsection
(e), but not later than January 1, 1999.
‘‘(g) The provisions of subsection (c) shall apply to
all appeals for which no valid notice of appeal, and the
provisions of subsection (d) shall apply to all protests for
which no valid protest, was filed prior to the date the Pan-
ama Canal Board of Contract Appeals begins to function.
Appeals and protests filed before said date shall remain
before the forum in which they were filed.
‘‘(h) The Panama Canal Board of Contract Appeals
may perform functions similar to those described in this
section for such other matters or activities of the Commis-
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sion as the Commission may determine and in accordance
with its regulations.’’.
SEC. 4. EXPEDITED IMPASSE PROCEDURES.
(a) Section 1271(a) of the Panama Canal Act of
1979 is amended by adding at the end the following:
‘‘(4) in the event bargaining efforts do not re-
sult in an agreement and the services of the Federal
Mediation and Conciliation Service or the Federal
Service Impasses Panel are requested—
‘‘(A) the Federal Mediation and Concilia-
tion Service shall conclude its efforts within 30
calendar days of the date its assistance begins,
or within such time as the parties may mutually
agree; and
‘‘(B) the Federal Service Impasses Panel
shall be required to decide an impasse within 90
calendar days of the date its services are re-
quested, or within such time as the parties may
mutually agree. The failure of the FSIP to
issue a decision within 90 days, or the mutually
agreed time limit, shall not affect any obligation
to maintain the status quo, except as permitted
under a collective bargaining agreement or
chapter 71 of title 5, United States Code.’’.
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(b) RETROACTIVITY.—Paragraph (4) shall apply to
all matters that are or become subjects of collective bar-
gaining on or after the effective date of this Act.
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