647
of transferred platinum to be replaced and the need for
replacement.
(d) COSTS.—Any transfer of platinum from the
stockpile to the Secretary of the Treasury shall be made
without the expenditure of any funds available to the De-
partment of Defense. The Secretary of the Treasury shall
be responsible for all costs incurred in connection with the
transfer, subsequent to the transfer, or in connection with
the replacement of the transferred platinum, such as
transportation, storage, testing, refining, or casting costs.
SEC. 3305. RESTRICTIONS ON DISPOSAL OF CERTAIN MAN-
GANESE FERRO.
(a) REQUIREMENT FOR REMELTING BY DOMESTIC
FERROALLOY
PRODUCERS.—High carbon manganese
ferro in the National Defense Stockpile that does not meet
the National Defense Stockpile classification of Grade
One, Specification 30(a), as revised May 22, 1992, may
be sold only for remelting by a domestic ferroalloy pro-
ducer unless the President determines that a domestic
ferroalloy producer is not available to acquire the material.
After the date of the enactment of this Act, the President
may not reclassify high carbon manganese ferro stored in
the National Defense Stockpile as of that date.
(b) DOMESTIC FERROALLOY PRODUCER DEFINED.—
For purposes of this section, the term ‘‘domestic ferroalloy
648
producer’’ means a company or other business entity that,
as determined by the President—
(1) is engaged in operations to upgrade man-
ganese ores of metallurgical grade or manganese
ferro; and
(2) conducts a significant level of its research,
development, engineering, and upgrading operations
in the United States.
(c) CONSULTATION WITH MARKET IMPACT COMMIT-
TEE.—In disposing of high carbon manganese ferro in the
National Defense Stockpile, the National Defense Stock-
pile Manager shall consult with the Market Impact Com-
mittee established under section 10(c) of the Strategic and
Critical Materials Stock Piling Act (50 U.S.C. 98h–1(c))
to ensure that the disposal of high carbon manganese ferro
does not disrupt the domestic manganese ferro industry.
(d) CONFORMING REPEAL.—Section 3304 of the Na-
tional Defense Authorization Act for Fiscal Year 1996
(Public Law 104–106; 110 Stat. 629) is repealed.
SEC. 3306. REQUIRED PROCEDURES FOR DISPOSAL OF
STRATEGIC AND CRITICAL MATERIALS.
Section 6(b) of the Strategic and Critical Materials
Stock Piling Act (50 U.S.C. 98e(b)) is amended in the
first sentence by striking out ‘‘materials from the stockpile
shall be made by formal advertising or competitive nego-
649
tiation procedures.’’ and inserting in lieu thereof ‘‘strate-
gic and critical materials from the stockpile shall be made
in accordance with the next sentence.’’.
TITLE XXXIV—NAVAL
PETROLEUM RESERVES
SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.
There is hereby authorized to be appropriated to the
Secretary of Energy $117,000,000 for fiscal year 1998 for
the purpose of carrying out activities under chapter 641
of title 10, United States Code, relating to the naval petro-
leum reserves (as defined in section 7420(2) of such title).
Funds appropriated pursuant to such authorization shall
remain available until expended.
SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PE-
TROLEUM DURING FISCAL YEAR 1998.
Notwithstanding section 7430(b)(2) of title 10, Unit-
ed States Code, during fiscal year 1998, any sale of any
part of the United States share of petroleum produced
from Naval Petroleum Reserves Numbered 1, 2, and 3
shall be made at a price not less than 90 percent of the
current sales price, as estimated by the Secretary of En-
ergy, of comparable petroleum in the same area.
650
SEC. 3403. TERMINATION OF ASSIGNMENT OF NAVY OFFI-
CERS TO OFFICE OF NAVAL PETROLEUM AND
OIL SHALE RESERVES.
(a) 
TERMINATION
OF
ASSIGNMENT
REQUIRE-
MENT.—Section 2 of Public Law 96–137 (42 U.S.C.
7156a) is repealed.
(b) EFFECT ON EXISTING ASSIGNMENTS.—In the
case of an officer of the Navy assigned, as of the date
of the enactment of this Act, to a management position
within the Office of Naval Petroleum and Oil Shale Re-
serves, the Secretary of the Navy may continue such as-
signment notwithstanding the repeal of section 2 of Public
Law 96–137 (42 U.S.C. 7156a), except that such assign-
ment may not extend beyond the date of the sale of Naval
Petroleum Reserve Numbered 1 (Elk Hills) pursuant to
subtitle B of title XXXIV of the National Defense Author-
ization Act for Fiscal Year 1996 (Public Law 104–106;
10 U.S.C. 7420 note).
SEC. 3404. TRANSFER OF JURISDICTION, NAVAL OIL SHALE
RESERVES NUMBERED 1 AND 3.
(a) TRANSFER REQUIRED.—Chapter 641 of title 10,
United States Code, is amended by adding at the end the
following new section:
651
‘‘§ 7439. Certain oil shale reserves: transfer of juris-
diction and petroleum exploration, devel-
opment, and production
‘‘(a) TRANSFER REQUIRED.—(1) Upon the enact-
ment of this section, the Secretary of Energy shall trans-
fer to the Secretary of the Interior administrative jurisdic-
tion over all public domain lands included within Oil Shale
Reserve Numbered 1 and those public domain lands in-
cluded within the undeveloped tracts of Oil Shale Reserve
Numbered 3.
‘‘(2) Not later than one year after the date of the
enactment of this section, the Secretary of Energy shall
transfer to the Secretary of the Interior administrative ju-
risdiction over those public domain lands included within
the developed tract of Oil Shale Reserve Numbered 3,
which consists of approximately 6,000 acres and 24 natu-
ral gas wells, together with pipelines and associated facili-
ties.
‘‘(3) Notwithstanding the transfer of jurisdiction, the
Secretary of Energy shall continue to be responsible for
all environmental restoration, waste management, and en-
vironmental compliance activities that are required under
Federal and State laws with respect to conditions existing
on the lands at the time of the transfer.
‘‘(4) Upon the transfer to the Secretary of the Inte-
rior of jurisdiction over public domain lands under this
652
subsection, the other provisions of this chapter shall cease
to apply with respect to the transferred lands.
‘‘(b) AUTHORITY TO LEASE.—(1) Beginning on the
date of the enactment of this section, or as soon thereafter
as practicable, the Secretary of the Interior shall enter
into leases with one or more private entities for the pur-
pose of exploration for, and development and production
of, petroleum (other than in the form of oil shale) located
on or in public domain lands in Oil Shale Reserves Num-
bered 1 and 3 (including the developed tract of Oil Shale
Reserve Numbered 3). Any such lease shall be made in
accordance with the requirements of the Mineral Leasing
Act (30 U.S.C. 181 et seq.) regarding the lease of oil and
gas lands and shall be subject to valid existing rights.
‘‘(2) Notwithstanding the delayed transfer of the de-
veloped tract of Oil Shale Reserve Numbered 3 under sub-
section (a)(2), the Secretary of the Interior shall enter into
a lease under paragraph (1) with respect to the developed
tract before the end of the one-year period beginning on
the date of the enactment of this section.
‘‘(c) MANAGEMENT.—The Secretary of the Interior,
acting through the Director of the Bureau of Land Man-
agement, shall manage the lands transferred under sub-
section (a) in accordance with the Federal Land Policy
653
and Management Act of 1976 (43 U.S.C. 1701 et seq.)
and other laws applicable to the public lands.
‘‘(d) TRANSFER
OF EXISTING EQUIPMENT.—The
lease of lands by the Secretary of the Interior under this
section may include the transfer, at fair market value, of
any well, gathering line, or related equipment owned by
the United States on the lands transferred under sub-
section (a) and suitable for use in the exploration, develop-
ment, or production of petroleum on the lands.
‘‘(e) COST MINIMIZATION.—The cost of any environ-
mental assessment required pursuant to the National En-
vironmental Policy Act of 1969 (42 U.S.C. 4321 et seq.)
in connection with a proposed lease under this section
shall be paid out of unobligated amounts available for ad-
ministrative expenses of the Bureau of Land Management.
‘‘(f) DISTRIBUTION OF RECEIPTS.—Notwithstanding
any other provision of law, all moneys received from a
lease under this section (including sales, bonuses, royalties
(including interest charges collected under the Federal Oil
and Gas Royalty Management Act of 1982 (30 U.S.C.
1701 et seq.)), and rentals) shall be paid and distributed
under section 35 of the Mineral Leasing Act (30 U.S.C.
191) in the same manner as moneys derived from other
oil and gas leases involving public domain lands other than
naval petroleum reserves.’’.
654
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘7439. Certain oil shale reserves: transfer of jurisdiction and petroleum explo-
ration, development, and production.’’.
TITLE XXXV—PANAMA CANAL
COMMISSION
Subtitle A—Authorization of Ex-
penditures 
From 
Revolving
Fund
SEC. 3501. SHORT TITLE.
This subtitle may be cited as the ‘‘Panama Canal
Commission Authorization Act for Fiscal Year 1998’’.
SEC. 3502. AUTHORIZATION OF EXPENDITURES.
(a) IN GENERAL.—Subject to subsection (b), the
Panama Canal Commission is authorized to use amounts
in the Panama Canal Revolving Fund to make such ex-
penditures within the limits of funds and borrowing au-
thority available to it in accordance with law, and to make
such contracts and commitments, as may be necessary
under the Panama Canal Act of 1979 (22 U.S.C. 3601
et seq.) for the operation, maintenance, improvement, and
administration of the Panama Canal for fiscal year 1998.
(b) LIMITATIONS.—For fiscal year 1998, the Panama
Canal Commission may expend from funds in the Panama
655
Canal Revolving Fund not more than $85,000 for official
reception and representation expenses, of which—
(1) not more than $23,000 may be used for of-
ficial reception and representation expenses of the
Supervisory Board of the Commission;
(2) not more than $12,000 may be used for of-
ficial reception and representation expenses of the
Secretary of the Commission; and
(3) not more than $50,000 may be used for of-
ficial reception and representation expenses of the
Administrator of the Commission.
SEC. 3503. PURCHASE OF VEHICLES.
Notwithstanding any other provision of law, the
funds available to the Commission shall be available for
the purchase and transportation to the Republic of Pan-
ama of passenger motor vehicles built in the United
States, the purchase price of which shall not exceed
$22,000 per vehicle.
SEC. 3504. EXPENDITURES ONLY IN ACCORDANCE WITH
TREATIES.
Expenditures authorized under this subtitle may be
made only in accordance with the Panama Canal Treaties
of 1977 and any law of the United States implementing
those treaties.
656
Subtitle B—Facilitation of Panama
Canal Transition
SEC. 3511. SHORT TITLE; REFERENCES.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Panama Canal Transition Facilitation Act of 1997’’.
(b) REFERENCES.—Except as otherwise expressly
provided, whenever in this subtitle an amendment or re-
peal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be con-
sidered to be made to a section or other provision of the
Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.).
SEC. 3512. DEFINITIONS RELATING TO CANAL TRANSITION.
Section 3 (22 U.S.C. 3602) is amended by adding
at the end the following new subsection:
‘‘(d) For purposes of this Act:
‘‘(1) The term ‘Canal Transfer Date’ means
December 31, 1999, such date being the date speci-
fied in the Panama Canal Treaty of 1977 for the
transfer of the Panama Canal from the United
States of America to the Republic of Panama.
‘‘(2) The term ‘Panama Canal Authority’
means the entity created by the Republic of Panama
to succeed the Panama Canal Commission as of the
Canal Transfer Date.’’.
657
PART I—TRANSITION MATTERS RELATING TO
COMMISSION OFFICERS AND EMPLOYEES
SEC. 3521. AUTHORITY FOR THE ADMINISTRATOR OF THE
COMMISSION TO ACCEPT APPOINTMENT AS
THE 
ADMINISTRATOR 
OF 
THE 
PANAMA
CANAL AUTHORITY.
(a) AUTHORITY FOR DUAL ROLE.—Section 1103 (22
U.S.C. 3613) is amended by adding at the end the follow-
ing new subsection:
‘‘(c) The Congress consents, for purposes of the 8th
clause of article I, section 9 of the Constitution of the
United States, to the acceptance by the individual serving
as Administrator of the Commission of appointment by
the Republic of Panama to the position of Administrator
of the Panama Canal Authority. Such consent is effective
only if that individual, while serving in both such posi-
tions, serves as Administrator of the Panama Canal Au-
thority without compensation, except for payments by the
Republic of Panama of travel and entertainment expenses,
including per diem payments.’’.
(b) WAIVER
OF CERTAIN CONFLICT-OF-INTEREST
STATUTES.—Such section is further amended by adding
at the end the following new subsections:
‘‘(d) The Administrator, with respect to participation
in any matter as Administrator of the Panama Canal
Commission (whether such participation is before, on, or
658
after the date of the enactment of the Panama Canal
Transition Facilitation Act of 1997), shall not be subject
to section 208 of title 18, United States Code, insofar as
the matter relates to prospective employment as Adminis-
trator of the Panama Canal Authority.
‘‘(e) If the Republic of Panama appoints as the Ad-
ministrator of the Panama Canal Authority the individual
serving as the Administrator of the Commission and if
that individual accepts the appointment—
‘‘(1) the Foreign Agents Registration Act of
1938, as amended (22 U.S.C. 611 et seq.), shall not
apply to that individual with respect to service as
the Administrator of the Panama Canal Authority;
‘‘(2) that individual, with respect to participa-
tion in any matter as the Administrator of the Pan-
ama Canal Commission, is not subject to section 208
of title 18, United States Code, insofar as the mat-
ter relates to service as, or performance of the duties
of, the Administrator of the Panama Canal Author-
ity; and
‘‘(3) that individual, with respect to official acts
performed as the Administrator of the Panama
Canal Authority, is not subject to the following:
‘‘(A) Sections 203 and 205 of title 18,
United States Code.
659
‘‘(B) Effective upon termination of the in-
dividual’s appointment as Administrator of the
Panama Canal Commission at noon on the
Canal Transfer Date, section 207 of title 18,
United States Code.
‘‘(C) Sections 501(a) and 502(a)(4) of the
Ethics in Government Act of 1978 (5 U.S.C.
App.), with respect to compensation received
for, and service in, the position of Adminis-
trator of the Panama Canal Authority.’’.
SEC. 3522. POST-CANAL TRANSFER PERSONNEL AUTHORI-
TIES.
(a) WAIVER OF CERTAIN POST-EMPLOYMENT RE-
STRICTIONS
FOR COMMISSION PERSONNEL BECOMING
EMPLOYEES OF THE PANAMA CANAL AUTHORITY.—Sec-
tion 1112 (22 U.S.C. 3622) is amended by adding at the
end the following new subsection:
‘‘(e) Effective as of the Canal Transfer Date, section
207 of title 18, United States Code, shall not apply to
an individual who is an officer or employee of the Panama
Canal Authority, but only with respect to official acts of
that individual as an officer or employee of the Authority
and only in the case of an individual who was an officer
or employee of the Commission and whose employment
660
with the Commission was terminated at noon on the Canal
Transfer Date.’’.
(b) CONSENT OF CONGRESS FOR ACCEPTANCE BY
RESERVE
AND RETIRED MEMBERS
OF
THE ARMED
FORCES OF EMPLOYMENT BY PANAMA CANAL AUTHOR-
ITY.—Such section is further amended by adding after
subsection (e), as added by subsection (a), the following
new subsection:
‘‘(f)(1) The Congress consents to the following per-
sons accepting civil employment (and compensation for
that employment) with the Panama Canal Authority for
which the consent of the Congress is required by the last
paragraph of section 9 of article I of the Constitution of
the United States, relating to acceptance of emoluments,
offices, or titles from a foreign government:
‘‘(A) Retired members of the uniformed serv-
ices.
‘‘(B) Members of a reserve component of the
armed forces.
‘‘(C) Members of the Commisioned Reserve
Corps of the Public Health Service.
‘‘(2) The consent of the Congress under paragraph
(1) is effective without regard to subsection (b) of section
908 of title 37, United States Code (relating to approval
661
required for employment of Reserve and retired members
by foreign governments).’’.
SEC. 3523. ENHANCED AUTHORITY OF COMMISSION TO ES-
TABLISH COMPENSATION OF COMMISSION
OFFICERS AND EMPLOYEES.
(a) REPEAL OF LIMITATIONS ON COMMISSION AU-
THORITY.—The following provisions are repealed:
(1) Section 1215 (22 U.S.C. 3655), relating to
basic pay.
(2) Section 1219 (22 U.S.C. 3659), relating to
salary protection upon conversion of pay rate.
(3) Section 1225 (22 U.S.C. 3665), relating to
minimum level of pay and minimum annual in-
creases.
(b) SAVINGS PROVISION.—Section 1202 (22 U.S.C.
3642) is amended by adding at the end the following new
subsection:
‘‘(c) In the case of an individual who is an officer
or employee of the Commission on the day before the date
of the enactment of the Panama Canal Transition Facili-
tation Act of 1997 and who has not had a break in service
with the Commission since that date, the rate of basic pay
for that officer or employee on or after that date may not
be less than the rate in effect for that officer or employee
on the day before that date of enactment except—
662
‘‘(1) as provided in a collective bargaining
agreement;
‘‘(2) as a result of an adverse action against the
officer or employee; or
‘‘(3) pursuant to a voluntary demotion.’’.
(c) CROSS-REFERENCE AMENDMENTS.—(1) Section
1216 (22 U.S.C. 3656) is amended by striking out ‘‘1215’’
and inserting in lieu thereof ‘‘1202’’.
(2) Section 1218 (22 U.S.C. 3658) is amended by
striking out ‘‘1215’’ and ‘‘1217’’ and inserting in lieu
thereof ‘‘1202’’ and ‘‘1217(a)’’, respectively.
SEC. 3524. TRAVEL, TRANSPORTATION, AND SUBSISTENCE
EXPENSES FOR COMMISSION PERSONNEL NO
LONGER SUBJECT TO FEDERAL TRAVEL REG-
ULATION.
(a) REPEAL OF APPLICABILITY OF TITLE 5 PROVI-
SIONS.—(1) Section 1210 (22 U.S.C. 3650) is amended
by striking out subsections (a), (b), and (c).
(2) Section 1224 (22 U.S.C. 3664) is amended—
(A) by striking out paragraph (10); and
(B) by redesignating paragraphs (11) through
(20) as paragraphs (10) through (19), respectively.
(b) CONFORMING AMENDMENTS.—(1) Section 1210
is further amended—
663
(A) by redesignating subsection (d)(1) as sub-
section (a) and in that subsection striking out
‘‘paragraph (2)’’ and inserting in lieu thereof ‘‘sub-
section (b)’’; and
(B) by redesignating subsection (d)(2) as sub-
section (b) and in that subsection—
(i) striking out ‘‘Notwithstanding para-
graph (1), an’’ and inserting in lieu thereof
‘‘An’’; and
(ii) striking out ’’referred to in paragraph
(1)’’ and inserting in lieu thereof ‘‘who is a citi-
zen of the Republic of Panama’’.
(2) The heading of such section is amended to read
as follows:
‘‘AIR TRANSPORTATION’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on January 1, 1999.
SEC. 3525. ENHANCED RECRUITMENT AND RETENTION AU-
THORITIES.
(a) RECRUITMENT, RELOCATION, AND RETENTION
BONUSES.—Section 1217 (22 U.S.C. 3657) is amended—
(1) by redesignating subsection (c) as sub-
section (e);
(2) in subsection (e) (as so redesignated), by
striking out ‘‘for the same or similar work per-
664
formed in the United States by individuals employed
by the Government of the United States’’ and insert-
ing in lieu thereof ‘‘of the individual to whom the
compensation is paid’’; and
(3) by inserting after subsection (b) the follow-
ing new subsections:
‘‘(c)(1) The Commission may pay a recruitment
bonus to an individual who is newly appointed to a posi-
tion with the Commission, or a relocation bonus to an em-
ployee of the Commission who must relocate to accept a
position, if the Commission determines that the Commis-
sion would be likely, in the absence of such a bonus, to
have difficulty in filling the position.
‘‘(2) A recruitment or relocation bonus may be paid
to an employee under this subsection only if the employee
enters into an agreement with the Commission to complete
a period of employment with the Commission established
by the Commission. If the employee voluntarily fails to
complete such period of employment or is separated from
service in such employment as a result of an adverse ac-
tion before the completion of such period, the employee
shall repay the entire amount of the bonus.
‘‘(3) A relocation bonus under this subsection may
be paid as a lump sum. A recruitment bonus under this
subsection shall be paid on a pro rata basis over the period
665
of employment covered by the agreement under paragraph
(2). A bonus under this subsection may not be considered
to be part of the basic pay of an employee.
‘‘(d)(1) The Commission may pay a retention bonus
to an employee of the Commission if the Commission de-
termines that—
‘‘(A) the employee has unusually high or unique
qualifications and those qualifications make it essen-
tial for the Commission to retain the employee for
a period specified by the Commission ending not
later than the Canal Transfer Date, or the Commis-
sion otherwise has a special need for the services of
the employee making it essential for the Commission
to retain the employee for a period specified by the
Commission ending not later than the Canal Trans-
fer Date; and
‘‘(B) the employee would be likely to leave em-
ployment with the Commission before the end of
that period if the retention bonus is not paid.
‘‘(2) A retention bonus under this subsection—
‘‘(A) shall be in a fixed amount;
‘‘(B) shall be paid on a pro rata basis (over the
period specified by the Commission as essential for
the retention of the employee), with such payments
666
to be made at the same time and in the same man-
ner as basic pay; and
‘‘(C) may not be considered to be part of the
basic pay of an employee.
‘‘(3) A decision by the Commission to exercise or to
not exercise the authority to pay a bonus under this sub-
section shall not be subject to review under any statutory
procedure or any agency or negotiated grievance procedure
except under any of the laws referred to in section 2302(d)
of title 5, United States Code.’’.
(b) EDUCATIONAL SERVICES.—Section 1321(e)(2)
(22 U.S.C. 3731(e)(2)) is amended by striking out ‘‘and
persons’’ and inserting in lieu thereof ‘‘, to other Commis-
sion employees when determined by the Commission to be
necessary for their recruitment or retention, and to other
persons’’.
SEC. 3526. TRANSITION SEPARATION INCENTIVE PAY-
MENTS.
Chapter 2 of title I (22 U.S.C. 3641 et seq.) is
amended by adding at the end of subchapter III the fol-
lowing new section:
‘‘TRANSITION SEPARATION INCENTIVE PAYMENTS
‘‘SEC. 1233. (a) In applying to the Commission and
employees of the Commission the provisions of section 663
of the Treasury, Postal Service, and General Government
667
Appropriations Act, 1997 (as contained in section 101(f)
of division A of Public Law 104–208; 110 Stat. 3009–
383), relating to voluntary separation incentives for em-
ployees of certain Federal agencies (in this section re-
ferred to as ‘section 663’)—
‘‘(1) the term ‘employee’ shall mean an em-
ployee of the Commission who has served in the Re-
public of Panama in a position with the Commission
for a continuous period of at least three years imme-
diately before the employee’s separation under an
appointment without time limitation and who is cov-
ered under the Civil Service Retirement System or
the Federal Employees’ Retirement System under
subchapter III of chapter 83 or chapter 84, respec-
tively, of title 5, United States Code, other than—
‘‘(A) an employee described in any of sub-
paragraphs (A) through (F) of subsection
(a)(2) of section 663; or
‘‘(B) an employee of the Commission who,
during the 24-month period preceding the date
of separation, has received a recruitment or re-
location bonus under section 1217(c) of this Act
or who, within the 12-month period preceding
the date of separation, received a retention
bonus under section 1217(d) of this Act;
668
‘‘(2) the strategic plan under subsection (b) of
section 663 shall include (in lieu of the matter speci-
fied in subsection (b)(2) of that section)—
‘‘(A) the positions to be affected, identified
by occupational category and grade level;
‘‘(B) the number and amounts of separa-
tion incentive payments to be offered; and
‘‘(C) a description of how such incentive
payments will facilitate the successful transfer
of the Panama Canal to the Republic of Pan-
ama;
‘‘(3) a separation incentive payment under sec-
tion 663 may be paid to a Commission employee
only to the extent necessary to facilitate the success-
ful transfer of the Panama Canal by the United
States of America to the Republic of Panama as re-
quired by the Panama Canal Treaty of 1977;
‘‘(4) such a payment—
‘‘(A) may be in an amount determined by
the Commission not to exceed $25,000; and
‘‘(B) may be made (notwithstanding the
limitation specified in subsection (c)(2)(D) of
section 663) in the case of an eligible employee
who voluntarily separates (whether by retire-
ment or resignation) during the 90-day period
669
beginning on the date of the enactment of this
section or during the period beginning on Octo-
ber 1, 1998, and ending on December 31, 1998;
‘‘(5) in the case of not more than 15 employees
who (as determined by the Commission) are unwill-
ing to work for the Panama Canal Authority after
the Canal Transfer Date and who occupy critical po-
sitions for which (as determined by the Commission)
at least two years of experience is necessary to en-
sure that seasoned managers are in place on and
after the Canal Transfer Date, such a payment (not-
withstanding paragraph (4))—
‘‘(A) may be in an amount determined by
the Commission not to exceed 50 percent of the
basic pay of the employee; and
‘‘(B) may be made (notwithstanding the
limitation specified in subsection (c)(2)(D) of
section 663) in the case of such an employee
who voluntarily separates (whether by retire-
ment or resignation) during the 90-day period
beginning on the date of the enactment of this
section; and
‘‘(6) the provisions of subsection (f) of section
663 shall not apply.
670
‘‘(b) A decision by the Commission to exercise or to
not exercise the authority to pay a transition separation
incentive under this section shall not be subject to review
under any statutory procedure or any agency or negotiated
grievance procedure except under any of the laws referred
to in section 2302(d) of title 5, United States Code.’’.
SEC. 3527. LABOR-MANAGEMENT RELATIONS.
Section 1271 (22 U.S.C. 3701) is amended by adding
at the end the following new subsection:
‘‘(c)(1) This subsection applies to any matter that be-
comes the subject of collective bargaining between the
Commission and the exclusive representative for any bar-
gaining unit of employees of the Commission during the
period beginning on the date of the enactment of this sub-
section and ending on the Canal Transfer Date.
‘‘(2)(A) The resolution of impasses resulting from
collective bargaining between the Commission and any
such exclusive representative during that period shall be
conducted in accordance with such procedures as may be
mutually agreed upon between the Commission and the
exclusive representative (without regard to any otherwise
applicable provisions of chapter 71 of title 5, United
States Code). Such mutually agreed upon procedures shall
become effective upon transmittal by the Chairman of the
Commission to the Congress of notice of the agreement
671
to use those procedures and a description of those proce-
dures.
‘‘(B) The Federal Services Impasses Panel shall not
have jurisdiction to resolve any impasse between the Com-
mission and any such exclusive representative in negotia-
tions over a procedure for resolving impasses.
‘‘(3) If the Commission and such an exclusive rep-
resentative do not reach an agreement concerning a proce-
dure for resolving impasses with respect to a bargaining
unit and transmit notice of the agreement under para-
graph (2) on or before July 1, 1998, the following shall
be the procedure by which collective bargaining impasses
between the Commission and the exclusive representative
for that bargaining unit shall be resolved:
‘‘(A) If bargaining efforts do not result in an
agreement, the parties shall request the Federal Me-
diation and Conciliation Service to assist in achiev-
ing an agreement.
‘‘(B) If an agreement is not reached within 45
days after the date on which either party requests
the assistance of the Federal Mediation and Concil-
iation Service in writing (or within such shorter pe-
riod as may be mutually agreed upon by the par-
ties), the parties shall be considered to be at an im-
passe and shall request the Federal Services Im-
672
passes Panel of the Federal Labor Relations Author-
ity to decide the impasse.
‘‘(C) If the Federal Services Impasses Panel
fails to issue a decision within 90 days after the date
on which its services are requested (or within such
shorter period as may be mutually agreed upon by
the parties), the efforts of the Panel shall be termi-
nated.
‘‘(D) In such a case, the Chairman of the Panel
(or another member in the absence of the Chairman)
shall immediately determine the matter by a drawing
(conducted in such manner as the Chairman (or, in
the absence of the Chairman, such other member)
determines appropriate) between the last offer of the
Commission and the last offer of the exclusive rep-
resentative, with the offer chosen through such
drawing becoming the binding resolution of the mat-
ter.
‘‘(4) In the case of a notice of agreement described
in paragraph (2)(A) that is transmitted to the Congress
as described in the second sentence of that paragraph
after July 1, 1998, the impasse resolution procedures cov-
ered by that notice shall apply to any impasse between
the Commission and the other party to the agreeement
673
that is unresolved on the date on which that notice is
transmitted to the Congress.’’.
SEC. 3528. AVAILABILITY OF PANAMA CANAL REVOLVING
FUND FOR SEVERANCE PAY FOR CERTAIN
EMPLOYEES SEPARATED BY PANAMA CANAL
AUTHORITY AFTER CANAL TRANSFER DATE.
(a) AVAILABILITY OF REVOLVING FUND.—Section
1302(a) (22 U.S.C. 3712(a)) is amended by adding at the
end the following new paragraph:
‘‘(10) Payment to the Panama Canal Authority,
not later than the Canal Transfer Date, of such
amount as is computed by the Commission to be the
future amount of severance pay to be paid by the
Panama Canal Authority to employees whose em-
ployment with the Authority is terminated, to the
extent that such severance pay is attributable to pe-
riods of service performed with the Commission be-
fore the Canal Transfer Date (and assuming for
purposes of such computation that the Panama
Canal Authority, in paying severance pay to termi-
nated employees, will provide for crediting of periods
of service with the Commission).’’.
(b) STYLISTIC AMENDMENTS.—Such section is fur-
ther amended—
674
(1) by striking out ‘‘for—’’ in the matter pre-
ceding paragraph (1) and inserting in lieu thereof
‘‘for the following purposes:’’;
(2) by capitalizing the initial letter of the first
word in each of paragraphs (1) through (9);
(3) by striking out the semicolon at the end of
each of paragraphs (1) through (7) and inserting in
lieu thereof a period; and
(4) by striking out ‘‘; and’’ at the end of para-
graph (8) and inserting in lieu thereof a period.
PART II—TRANSITION MATTERS RELATING TO
OPERATION AND ADMINISTRATION OF CANAL
SEC. 3541. ESTABLISHMENT OF PROCUREMENT SYSTEM
AND BOARD OF CONTRACT APPEALS.
Title III of the Panama Canal Act of 1979 (22
U.S.C. 3601 et seq.) is amended by inserting after the
title heading the following new chapter:
‘‘CHAPTER 1—PROCUREMENT
‘‘PROCUREMENT SYSTEM
‘‘SEC. 3101. (a) PANAMA CANAL ACQUISITION REGU-
LATION.—(1) The Commission shall establish by regula-
tion a comprehensive procurement system. The regulation
shall be known as the ‘Panama Canal Acquisition Regula-
tion’ (in this section referred to as the ‘Regulation’) and
675
shall provide for the procurement of goods and services
by the Commission in a manner that—
‘‘(A) applies the fundamental operating prin-
ciples and procedures in the Federal Acquisition
Regulation;
‘‘(B) uses efficient commercial standards of
practice; and
‘‘(C) is suitable for adoption and uninterrupted
use by the Republic of Panama after the Canal
Transfer Date.
‘‘(2) The Regulation shall contain provisions regard-
ing the establishment of the Panama Canal Board of Con-
tract Appeals described in section 3102.
‘‘(b) SUPPLEMENT TO REGULATION.—The Commis-
sion shall develop a Supplement to the Regulation (in this
section referred to as the ‘Supplement’) that identifies
both the provisions of Federal law applicable to procure-
ment of goods and services by the Commission and the
provisions of Federal law waived by the Commission under
subsection (c).
‘‘(c) WAIVER AUTHORITY.—(1) Subject to paragraph
(2), the Commission shall determine which provisions of
Federal law should not apply to procurement by the Com-
mission and may waive those laws for purposes of the Reg-
ulation and Supplement.
676
‘‘(2) For purposes of paragraph (1), the Commission
may not waive—
‘‘(A) section 27 of the Office of Federal Pro-
curement Policy Act (41 U.S.C. 423);
‘‘(B) the Contract Disputes Act of 1978 (41
U.S.C. 601 et seq.), other than section 10(a) of such
Act (41 U.S.C 609(a)); or
‘‘(C) civil rights, environmental, or labor laws.
‘‘(d) CONSULTATION WITH ADMINISTRATOR
FOR
FEDERAL PROCUREMENT POLICY.—In establishing the
Regulation and developing the Supplement, the Commis-
sion shall consult with the Administrator for Federal Pro-
curement Policy.
‘‘(e) EFFECTIVE DATE.—The Regulation and the
Supplement shall take effect on the date of publication
in the Federal Register, or January 1, 1999, whichever
is earlier.
‘‘PANAMA CANAL BOARD OF CONTRACT APPEALS
‘‘SEC. 3102. (a) ESTABLISHMENT.—(1) The Sec-
retary of Defense, in consultation with the Commission,
shall establish a board of contract appeals, to be known
as the Panama Canal Board of Contract Appeals, in ac-
cordance with section 8 of the Contract Disputes Act of
1978 (41 U.S.C. 607). Except as otherwise provided by
this section, the Panama Canal Board of Contract Appeals
(in this section referred to as the ‘Board’) shall be subject
677
to the Contract Disputes Act of 1978 (41 U.S.C. 601 et
seq.) in the same manner as any other agency board of
contract appeals established under that Act.
‘‘(2) The Board shall consist of three members. At
least one member of the Board shall be licensed to practice
law in the Republic of Panama. Individuals appointed to
the Board shall take an oath of office, the form of which
shall be prescribed by the Secretary of Defense.
‘‘(b) EXCLUSIVE JURISDICTION TO DECIDE AP-
PEALS.—Notwithstanding section 10(a)(1) of the Contract
Disputes Act of 1978 (41 U.S.C. 609(a)(1)) or any other
provision of law, the Board shall have exclusive jurisdic-
tion to decide an appeal from a decision of a contracting
officer under section 8(d) of such Act (41 U.S.C. 607(d)).
‘‘(c) EXCLUSIVE JURISDICTION TO DECIDE PRO-
TESTS.—The Board shall decide protests submitted to it
under this subsection by interested parties in accordance
with subchapter V of title 31, United States Code. Not-
withstanding section 3556 of that title, section 1491(b)
of title 28, United States Code, and any other provision
of law, the Board shall have exclusive jurisdiction to decide
such protests. For purposes of this subsection—
‘‘(1) except as provided in paragraph (2), each
reference to the Comptroller General in sections
678
3551 through 3555 of title 31, United States Code,
is deemed to be a reference to the Board;
‘‘(2) the reference to the Comptroller General
in section 3553(d)(3)(C)(ii) of such title is deemed
to be a reference to both the Board and the Comp-
troller General;
‘‘(3) the report required by paragraph (1) of
section 3554(e) of such title shall be submitted to
the Comptroller General as well as the committees
listed in such paragraph;
‘‘(4) the report required by paragraph (2) of
such section shall be submitted to the Comptroller
General as well as Congress; and
‘‘(5) section 3556 of such title shall not apply
to the Board, but nothing in this subsection shall af-
fect the right of an interested party to file a protest
with the appropriate contracting officer.
‘‘(d) PROCEDURES.—The Board shall prescribe such
procedures as may be necessary for the expeditious deci-
sion of appeals and protests under subsections (b) and (c).
‘‘(e) COMMENCEMENT.—The Board shall begin to
function as soon as it has been established and has pre-
scribed procedures under subsection (d), but not later
than January 1, 1999.
679
‘‘(f) TRANSITION.—The Board shall have jurisdiction
under subsection (b) and (c) over any appeals and protests
filed on or after the date on which the Board begins to
function. Any appeals and protests filed before such date
shall remain before the forum in which they were filed.
‘‘(g) OTHER FUNCTIONS.—The Board may perform
functions similar to those described in this section for such
other matters or activities of the Commission as the Com-
mission may determine and in accordance with regulations
prescribed by the Commission.’’.
SEC. 3542. TRANSACTIONS WITH THE PANAMA CANAL AU-
THORITY.
Section 1342 (22 U.S.C. 3752) is amended—
(1) by designating the text of the section as
subsection (a); and
(2) by adding at the end the following new sub-
sections:
‘‘(b) The Commission may provide office space,
equipment, supplies, personnel, and other in-kind services
to the Panama Canal Authority on a nonreimbursable
basis.
‘‘(c) Any executive department or agency of the Unit-
ed States may, on a reimbursable basis, provide to the
Panama Canal Authority materials, supplies, equipment,
work, or services requested by the Panama Canal Author-
680
ity, at such rates as may be agreed upon by that depart-
ment or agency and the Panama Canal Authority.’’.
SEC. 3543. TIME LIMITATIONS ON FILING OF CLAIMS FOR
DAMAGES.
(a) FILING OF ADMINISTRATIVE CLAIMS WITH COM-
MISSION.—Sections 1411(a) (22 U.S.C. 3771(a)) and
1412 (22 U.S.C. 3772) are each amended in the last sen-
tence by striking out ‘‘within 2 years after’’ and all that
follows through ‘‘of 1985,’’ and inserting in lieu thereof
‘‘within one year after the date of the injury or the date
of the enactment of the Panama Canal Transition Facili-
tation Act of 1997,’’.
(b) FILING OF JUDICIAL ACTIONS.—The penultimate
sentence of section 1416 (22 U.S.C. 3776) is amended—
(1) by striking out ‘‘one year’’ the first place it
appears and inserting in lieu thereof ‘‘180 days’’;
and
(2) by striking out ‘‘claim, or’’ and all that fol-
lows through ‘‘of 1985,’’ and inserting in lieu there-
of ‘‘claim or the date of the enactment of the Pan-
ama Canal Transition Facilitation Act of 1997,’’.
SEC. 3544. TOLLS FOR SMALL VESSELS.
Section 1602(a) (22 U.S.C. 3792(a)) is amended—
681
(1) in the first sentence, by striking out ‘‘supply
ships, and yachts’’ and inserting in lieu thereof ‘‘and
supply ships’’; and
(2) by adding at the end the following new sen-
tence: ‘‘Tolls for small vessels (including yachts), as
defined by the Commission, may be set at rates de-
termined by the Commission without regard to the
preceding provisions of this subsection.’’.
SEC. 3545. DATE OF ACTUARIAL EVALUATION OF FECA LI-
ABILITY.
Section 5(a) of the Panama Canal Commission Com-
pensation Fund Act of 1988 (22 U.S.C. 3715c(a)) is
amended by striking out ‘‘Upon the termination of the
Panama Canal Commission’’ and inserting in lieu thereof
‘‘By March 31, 1998’’.
SEC. 3546. APPOINTMENT OF NOTARIES PUBLIC.
Section 1102a (22 U.S.C. 3612a) is amended—
(1) by redesignating subsection (g) as sub-
section (h); and
(2) by inserting after subsection (f) the follow-
ing new subsection:
‘‘(g)(1) The Commission may appoint any United
States citizen to have the general powers of a notary pub-
lic to perform, on behalf of Commission employees and
their dependents outside the United States, any notarial
682
act that a notary public is required or authorized to per-
form within the United States. Unless an earlier expira-
tion is provided by the terms of the appointment, any such
appointment shall expire three months after the Canal
Transfer Date.
‘‘(2) Every notarial act performed by a person acting
as a notary under paragraph (1) shall be as valid, and
of like force and effect within the United States, as if exe-
cuted by or before a duly authorized and competent notary
public in the United States.
‘‘(3) The signature of any person acting as a notary
under paragraph (1), when it appears with the title of that
person’s office, is prima facie evidence that the signature
is genuine, that the person holds the designated title, and
that the person is authorized to perform a notarial act.’’.
SEC. 3547. COMMERCIAL SERVICES.
Section 1102b (22 U.S.C. 3612b) is amended by add-
ing at the end the following new subsection:
‘‘(e) The Commission may conduct and promote com-
mercial activities related to the management, operation,
or maintenance of the Panama Canal. Any such commer-
cial activity shall be carried out consistent with the Pan-
ama Canal Treaty of 1977 and related agreements.’’.
683
SEC. 3548. TRANSFER FROM PRESIDENT TO COMMISSION
OF CERTAIN REGULATORY FUNCTIONS RE-
LATING TO EMPLOYMENT CLASSIFICATION
APPEALS.
Sections 1221(a) and 1222(a) (22 U.S.C. 3661(a),
3662(a)) are amended by striking out ‘‘President’’ and in-
serting in lieu thereof ‘‘Commission’’.
SEC. 3549. ENHANCED PRINTING AUTHORITY.
Section 1306(a) (22 U.S.C. 3714b(a)) is amended by
striking out ‘‘Section 501’’ and inserting in lieu thereof
‘‘Sections 501 through 517 and 1101 through 1123’’.
SEC. 3550. TECHNICAL AND CONFORMING AMENDMENTS.
(a) CLERICAL AMENDMENTS.—The table of contents
in section 1 is amended—
(1) by striking out the item relating to section
1210 and inserting in lieu thereof the following:
‘‘Sec. 1210. Air transportation.’’;
(2) by striking out the items relating to sections
1215, 1219, and 1225;
(3) by inserting after the item relating to sec-
tion 1232 the following new item:
‘‘Sec. 1233. Transition separation incentive payments.’’;
and
(4) by inserting after the item relating to the
heading of title III the following:
‘‘CHAPTER 1—PROCUREMENT
684
‘‘Sec. 3101. Procurement system.
‘‘Sec. 3102. Panama Canal Board of Contract Appeals.’’.
(b) AMENDMENT TO REFLECT PRIOR CHANGE IN
COMPENSATION OF ADMINISTRATOR.—Section 5315 of
title 5, United States Code, is amended by striking out
the following:
‘‘Administrator of the Panama Canal Commis-
sion.’’.
(c) AMENDMENTS TO REFLECT CHANGE IN TRAVEL
AND TRANSPORTATION EXPENSES AUTHORITY.—(1) Sec-
tion 5724(a)(3) of title 5, United States Code, is amended
by striking out ‘‘, the Commonwealth of Puerto Rico,’’ and
all that follows through ‘‘Panama Canal Act of 1979’’ and
inserting in lieu thereof ‘‘or the Commonwealth of Puerto
Rico’’.
(2) Section 5724a(j) of such title is amended—
(A) by inserting ‘‘and’’ after ‘‘Northern Mari-
ana Islands,’’; and
(B) by striking out ‘‘United States, and’’ and
all that follows through the period at the end and
inserting in lieu thereof ‘‘United States.’’.
(3) The amendments made by this subsection shall
take effect on January 1, 1999.
(d) MISCELLANEOUS TECHNICAL AMENDMENTS.—
(1) Section 3(b) (22 U.S.C. 3602(b)) is amend-
ed by striking out ‘‘the Canal Zone Code’’ and all
691
1997, shall be the gross tonnage of the vessel stated on
the most recent such certificate.’’.
Passed the House of Representatives June 25, 1997.
Attest:
Clerk.