I
105TH CONGRESS
1ST SESSION
H. R. 1148
To authorize expenditures for fiscal year 1998 for the operation and
maintenance of the Panama Canal, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 20, 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 authorize expenditures for fiscal year 1998 for the oper-
ation and maintenance of the Panama Canal, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
Subtitle A—Authorization of Appropriations
SECTION 1. SHORT TITLE.
This subtitle may be cited as the ‘‘Panama Canal
Commission Authorization Act for Fiscal Year 1998’’.
SEC. 2. AUTHORIZATION OF EXPENDITURES.
(a) IN GENERAL.—Subject to subsection (b), the
Panama Canal Commission is authorized to use amounts
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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, as amended, (22
U.S.C. 3601 et seq.) for the operation, maintenance, im-
provement, 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
Canal Revolving Fund not more than $85,000 for recep-
tion 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. 3. PURCHASE OF MOTOR VEHICLES.
Notwithstanding any other provision of law, funds
available to the Panama Canal Commission shall be avail-
able for the purchase and transportation to the Isthmus
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of Panama of passenger motor vehicles, the purchase price
of which shall not exceed $22,000 per vehicle.
Subtitle B—Amendments to Panama Canal
Act of 1979
SEC. 4. SHORT TITLE; REFERENCES.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Panama Canal Act Amendments of 1979’’.
(b) REFERENCE.—Except as otherwise expressly pro-
vided, whenever in this subtitle an amendment or repeal
is expressed in terms of an amendment to, or repeal of,
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the Pan-
ama Canal Act of 1979, as amended (22 U.S.C. 3601 et
seq.).
SEC. 5. NOTARY PUBLIC.
Section 1102a (22 U.S.C. 3612a) is amended—
(a) by redesignating subsection (g) as sub-
section (i);
(b) by adding a new subsection (g), reading as
follows:
‘‘(g)(1) The Commission shall have the power to ap-
point United States citizens to have the general powers
of a notary public who shall perform, on behalf of Commis-
sion employees and dependents, those notarial acts which
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any notary public is required or authorized to do within
the United States.
‘‘(2) Every such notarial act shall be as valid, and
of like force and effect within the United States, for all
intents and purposes, as if executed by or before any other
person within the United States duly authorized and com-
petent.
‘‘(3) The signature of any such person acting as no-
tary, together with the title of that person’s offices, 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. 6. COMMERCIAL SERVICES.
Section 1102a (22 U.S.C. 3612a) is amended by add-
ing new subsection (h), reading as follows:
‘‘(h) The Commission shall have authority to conduct
and promote commercial activities related to the manage-
ment, operation or maintenance of the Panama Canal,
consistent with the Panama Canal Treaty of 1977 and re-
lated agreements.’’
SEC. 7. POST-EMPLOYMENT RESTRICTIONS.
Section 1112 (22 U.S.C. 3622) is amended by adding
new subsection (e) to read as follows:
‘‘(e) An officer or employee of the Commission shall
be exempt from the restrictions of section 207 of title 18,
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United States Code, following termination of employment
with the Commission at noon, December 31, 1999, but
only for official actions as an officer or employee of the
Panama Canal Authority.’’
SEC. 8. COMPENSATION.
(a) REPEALS.—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 base.
(3) Section 1225 (22 U.S.C. 3665), relating to
minimum level of pay and minimum annual in-
creases.
(b) SAVINGS PROVISION.—The rate of basic pay for
an officer or employee of the Commission after the effec-
tive date of this Act shall not be less than it was imme-
diately before the effective date of this Act, except—
(1) as provided in a collective bargaining agree-
ment;
(2) as a result of an adverse action against the
officer or employee; or
(3) pursuant to a voluntary demotion.
SEC. 9. TRAVEL AND TRANSPORTATION EXPENSES.
Section 1210 (22 U.S.C. 3650) is amended—
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(a) by repealing subsections (a), (b) and (c) and
redesignating subsection (d)(1) as (a) and subsection
(d)(2) as (b).
(b) in subsection (a) by striking ‘‘2’’ and insert-
ing ‘‘b’’.
(c) in subsection (b) by striking ‘‘1’’ and insert-
ing ‘‘a’’.
(d) by revising the heading to read as follows:
‘‘AIR TRANSPORTATION’’.
SEC. 10. RECRUITMENT AND RETENTION REMUNERATION.
Section 1217 (22 U.S.C. 3657) is amended—
(a) by redesignating subsection (c) as sub-
section (e) and striking therein ‘‘for the same or
similar work performed in the United States by indi-
viduals employed by the Government of the United
States’’.
(b) by adding new subsections (c), (d) and (f),
reading as follows:
‘‘(c)(1) The Administrator may authorize the pay-
ment of a bonus to an employee who is newly recruited
to a position, or to an employee who must relocate to ac-
cept a position, if the Administrator determines that the
Commission would be likely, in the absence of such a
bonus, to encounter difficulty in filling the position.
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‘‘(2) Payment of a recruitment or relocation bonus
shall be contingent upon the employee’s entering into an
agreement with the Commission to complete a period of
employment with the Commission established by the Com-
mission. If the employee voluntarily fails to complete such
period of service or is separated from the service as a re-
sult of an adverse action before completion of such period,
the employee shall repay the bonus on a pro rata basis.
‘‘(3) A recruitment or relocation bonus shall be paid
as a lump sum and may not be considered to be part of
the basic pay of an employee.
‘‘(d)(1) The Administrator may authorize the pay-
ment of a retention bonus to an employee if the Adminis-
trator determines that—
‘‘(A) the unusually high or unique qualifications
of the employee or a special need of the agency for
the employee’s services makes it essential to retain
the employee; and
‘‘(B) the employee would be likely to leave in
the absence of the receipt of a retention bonus.
‘‘(2) A retention bonus shall be a fixed amount, but
paid on pro rata basis at the same time and in the same
manner as basic pay but shall not be part of the basic
pay of an employee.
‘‘(e) * * *.
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‘‘(f) The decision to exercise or forgo the authority
to make payments under this section shall not be subject
to challenge under any statutory procedure or any agency
or negotiated grievance procedure.’’
SEC. 11. CLASSIFICATION APPEALS.
(a) Section 1221(a) (22 U.S.C. 3661(a)) is amended
in the first sentence by striking ‘‘President’’ and inserting
‘‘Commission’’.
(b) Section 1222(a) (22 U.S.C. 3662(a)) is amended
in the second sentence by striking ‘‘President’’ and insert-
ing ‘‘Commission’’.
SEC. 12. TRAVEL, TRANSPORTATION AND SUBSISTENCE.
Section 1224 (22 U.S.C. 3664) is amended by—
(a) striking out clause (10); and
(b) redesignating clauses (11)–(20) as (10)–
(19).
SEC. 13. CONTINGENT SEVERANCE PAY LIABILITY.
Section 1302(a) (22 U.S.C. 3712(a)) is amended by
adding the following paragraph:
‘‘(10) payment of severance pay to employees
terminated from the Panama Canal Authority for
periods of service with the Commission.’’
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SEC. 14. PRINTING.
Section 1306 (22 U.S.C. 3716) is amended by strik-
ing ‘‘Section 501’’ and inserting in lieu thereof ‘‘Sections
501 through 517 and 1101 through 1123’’.
SEC. 15. INTERAGENCY SERVICES, REIMBURSEMENTS.
Section 1321(e)(2) (22 U.S.C. 3731(e)(2)) is amend-
ed to read as follows:
‘‘(2) educational services provided by schools in
the Republic of Panama, or the United States, which
are not operated by the United States, to employees
of the Commission who are citizens of the United
States, to other Commission employees when deter-
mined by the Administrator to be necessary for their
recruitment or retention, and to other persons who
were receiving such services at the expense of the
Canal Zone Government before the effective date of
the Panama Canal Act of 1979.’’
SEC. 16. TRANSACTIONS WITH THE REPUBLIC OF PANAMA.
Section 1342 (22 U.S.C. 3752) is amended—
(a) by redesignating the present section as sub-
section (a);
(b) in subsection (a), by striking ‘‘the Commis-
sion’’ whenever it appears and inserting in lieu
thereof ‘‘an executive agency’’; and
(c) adding the following new subsection:
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‘‘(b) Notwithstanding subsection (a), the Commission
may provide office space, equipment, supplies, personnel
and other inkind services to the Panama Canal Author-
ity.’’
SEC. 17. FILING OF ADMIRALTY CLAIMS.
(a) Section 1411(a) (22 U.S.C. 3771(a)) is amended
by revising the last sentence to read as follows: ‘‘No pay-
ment for damages on a claim may be made under this
section unless the claim is filed with the Commission with-
in 1 year after the date of the injury, or within 1 year
after the date of the enactment of the Panama Canal Act
Amendments of 1997, whichever is later.’’
(b) Section 1412 (22 U.S.C. 3772) is amended by
revising the last sentence to read as follows: ‘‘No payment
for damages on a claim may be made under this section
unless the claim is filed with the Commission within 1 year
after the date of the injury, or within 1 year after the
date of the enactment of the Panama Canal Act Amend-
ments of 1997, whichever is later.’’
(c) Section 1416 (22 U.S.C. 3776) is amended by re-
vising the penultimate sentence to read as follows: ‘‘Any
action on a claim under this section shall be barred unless
the action is brought within 180 days after the date on
which the Commission mails to the claimant written notifi-
cation of the Commission’s final determination with re-
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spect to the claim, or within 180 days after the date of
the enactment of the Panama Canal Act Amendments of
1997, whichever is later.’’
SEC. 18. TOLLS FOR SMALL VESSELS.
Section 1602(a) (22 U.S.C. 3792(a)) is amended—
(a) in the first sentence, by adding ‘‘and’’ be-
fore ‘‘supply ships’’, deleting the comma after ‘‘sup-
ply ships’’ and deleting ‘‘and yachts’’; and
(b) by adding at the end thereof a new sen-
tence, reading as follows: ‘‘The tolls for yachts and
other small vessels as defined by the Commission
may be set at fixed rates determined by the Commis-
sion.’’
SEC. 19. DATE OF ACTUARIAL EVALUATION OF FECA LI-
ABILITY.
Section 3715c(a) of title 22, United States Code, is
amended by striking ‘‘Upon termination of the Panama
Canal Commission’’ and inserting in lieu thereof ‘‘By
March 31, 1998’’.
SEC. 20. RETIREMENT ELIGIBILITY.
(a) Section 8336(c)(2)(B) of title 5, United States
Code, is amended by striking ‘‘before January 1, 2000,’’
and inserting ‘‘with the Panama Canal Commission,’’.
(b) Paragraph (4) of section 8336(I) is redesignated
as paragraph (5) and amended to read as follows:
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‘‘(5) For the purpose of this subsection—
‘‘(A) ‘Panama Canal service’ means—
‘‘(i) service as an employee of the
Canal Zone Government, the Panama
Canal Company, or the Panama Canal
Commission, including service with the of-
fice established pursuant to 22 U.S.C.
3714a(b) to close out the affairs of the
Commission that are still pending after the
termination of the Panama Canal Treaty
of 1977; or
‘‘(ii) service at a permanent duty sta-
tion in the Canal Zone or Republic of Pan-
ama as an employee of an Executive agen-
cy (other than the Commission) conducting
operations in the Canal Zone or the Re-
public of Panama; and
‘‘(B) ‘Executive agency’ includes the
Smithsonian Institution.’’
(c) Section 8336(I) is amended by adding the follow-
ing new paragraph:
‘‘(4) An employee of the Panama Canal Com-
mission, assigned to the office established pursuant
to 22 U.S.C. 3714a(b) to close out the affairs of the
Commission, who is separated after January 1,
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2000, and who otherwise would be eligible for an im-
mediate annuity under 8336(I) (1), (2) or (3) except
for date of separation, is entitled to an annuity if
the employee is separated—
‘‘(A) involuntarily, after completing 20
years of service or after becoming 48 years of
age and completing 18 years of service, except
by adverse action, or
‘‘(B) voluntarily, after completing 23 years
of service or after becoming 48 years of age and
completing 18 years of service.’’
SEC. 21. LUMP SUM SEVERANCE PAY.
Section 5595 of title 5, United States Code, is
amended to read as follows:
‘‘(j) In the case of an employee of the Panama Canal
Commission who is entitled to severance pay under this
section, on or after December 31, 1999, the agency may
pay the total amount of the severance pay due the em-
ployee in one lump sum.’’
SEC. 22. EMPLOYMENT OF RESERVES AND RETIRED MEM-
BERS BY PANAMA CANAL AUTHORITY.
Section 908 of title 37, United States Code, is
amended by adding the following new subsection:
‘‘(c) Notwithstanding subsection (b), a person de-
scribed in subsection (a) may accept employment or com-
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pensation described in that subsection with the entity of
the Government of the Republic of Panama known as the
Panama Canal Authority, which is the successor to the
Panama Canal Commission.’’
SEC. 23. CONFORMING AND CLERICAL AMENDMENTS.
(a) Section 1216 (22 U.S.C. 3656) is amended by
striking ‘‘1215’’ and inserting in lieu thereof ‘‘1202’’.
(b) Section 1218 (22 U.S.C. 3658) is amended by
striking ‘‘1215’’ and inserting in lieu thereof ‘‘1202’’ and
by revising ‘‘1217’’ to read ‘‘1217(a)’’.
(c) Section 5315 of title 5, United States Code, is
amended by striking ‘‘Administrator, Panama Canal Com-
mission’’.
(d)(1) Section 5724(a)(3) of title 5, United States
Code, is amended by striking ‘‘, the Commonwealth of
Puerto Rico, or the areas and installations in the Republic
of Panama made available to the United States pursuant
to the Panama Canal Treaty of 1977 and related agree-
ments, as described in section 3(a) of the Panama Canal
Act of 1979’’ and inserting in lieu thereof ‘‘or the Com-
monwealth of Puerto Rico’’.
(2) Section 5724a of title 5, United States Code, is
amended by striking ‘‘, the Commonwealth of Puerto Rico,
or the areas and installations in the Republic of Panama
made available to the United States pursuant to the Pan-