I
103D CONGRESS
2D SESSION
H. R. 5229
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
OCTOBER 6, 1994
Mr. TAUZIN (for himself and Mr. FIELDS of Texas) (both by request) intro-
duced the following bill; which was referred to the Committee on Mer-
chant Marine and Fisheries
A BILL
To amend the Panama Canal Act of 1979 to reconstitute
the Panama Canal Commission as a United States Gov-
ernment corporation, 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. 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, oper-
ating, and maintaining the Panama Canal and its com-
plementary works, installations and equipment, and of
conducting operations incident thereto, in accordance with
the Panama Canal Treaty of 1977 and related agree-
ments, 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 Louisi-
ana.’’.
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 Depart-
ment 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 mem-
bers of the Board who are nationals of the United States
shall hold no other office in or be employed by the Govern-
ment of the United States, and shall be chosen for the
independent perspective they can bring to the Commis-
sion’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 Sec-
retary.’’.
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 Com-
mission in the world shipping community and allow for
the exchange of varied perspectives between the Board and
distinguished international guests in the important delib-
erations of the Commission, the United States and the Re-
public 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 perspec-
tive 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 re-
gard to his relationship with the Board or the Com-
mission.
‘‘(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 pend-
ing 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 con-
duct 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 simi-
lar process may not be issued against salaries
or other moneys owed by the Commission to its
employees except to the extent specifically au-
thorized by the laws of the United States; and
‘‘(C) it is exempt from the payment of in-
terest on claims and judgments;
‘‘(4) may enter into contracts, leases, agree-
ments, or other transactions;
‘‘(5) may determine the character of, and neces-
sity 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 per-
tinent provisions of law generally applicable to Gov-
ernment corporations; and
‘‘(6) may purchase, lease, or otherwise acquire,
and hold, own, maintain, work, develop, and, subject
to section 1504, sell, lease, exchange, convey, mort-
gage, 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 Trea-
ty of 1977 and related agreements, and to chapter 91 of
title 31, United States Code, popularly known as the Gov-
ernment Corporation Control Act, the Commission may—
(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 Gen-
eral’’; 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 audi-
tors 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 Commis-
sion 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 fol-
lows:
‘‘(c) After the proceedings have been conducted pur-
suant to subsection (a) and (b) of this section, the Com-
mission 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 re-
designating subsection (f) as subsection (d).
SEC. 10. The Panama Canal Act of 1979 is amend-
ed—
(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 strik-
ing ‘‘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.’’.
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