I
104TH CONGRESS
2D SESSION
H. R. 3282
To authorize expenditures for fiscal year 1997 for the operation and
maintenance of the Panama Canal, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 22, 1996
Mr. BATEMAN (for himself and Mr. TAYLOR of Mississippi) (both by request)
introduced the following bill; which was referred to the Committee on Na-
tional Security, and in addition to the Committee on Government Reform
and Oversight, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned
A BILL
To authorize expenditures for fiscal year 1997 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,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Panama Canal Com-
mission Authorization Act, Fiscal year 1997’’.
SEC. 2. AUTHORIZATION OF EXPENDITURES.
(a) IN GENERAL.—Subject to subsection (b), the
Panama Canal Commission is authorized 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, to be derived from the
Panama Canal Commission Revolving Fund, as may be
necessary under the Panama Canal Act of 1979 (22
U.S.C. 3601 et seq.), for the operation, maintenance, im-
provement and administration of the Panama Canal for
fiscal year 1997
(b) LIMITATIONS.—For fiscal year 1997, the Panama
Canal Commission may expend from funds in the Panama
Canal Commission Revolving Fund not more than
$73,000 for reception and representation expenses of
which—
(1) not more than $18,000 may be used for of-
ficial reception and representation expenses of the
Supervisory Board of the Commission;
(2) not more than $10,000 may be used for of-
ficial reception and representation expenses of the
Secretary of the Commission; and
(3) not more than $45,000 may be used for of-
ficial reception and representation expenses of the
Administrator of the Commission.
SEC. 3. PURCHASE OF VEHICLES.
Notwithstanding the provisions of any other law, the
funds available to the Commission shall be available for
the purchase of, and transportation to, the Republic of
Panama, passenger motor vehicles, including large, heavy-
duty vehicles.
SEC. 4. GENERAL PROVISIONS.
Expenditures authorized under this Act may be made
only in accordance with the Panama Canal Treaties of
1977 and any law of the United States implementing
those treaties.
SEC. 5. DEFINITIONS AND RECOMMENDATION FOR LEGIS-
LATION.
In section 3 of the Panama Canal Act of 1979 (22
U.S.C. 3602)—
(1) the heading is amended to read ‘‘DEFINI-
TIONS’’;
(2) in subsection (b), the word ‘‘and’’ is added
after the semicolon at the end of paragraph (4), and
paragraphs (6) and (7) are deleted; and
(3) subsection (d) is deleted.
SEC. 6. OFFICE OF OMBUDSMAN.
In section 1113 of the Panama Canal Act of 1979
(22 U.S.C. 3623), subsection (d) is deleted and subsection
(e) is redesignated as (d).
SEC. 7. APPOINTMENT AND COMPENSATION; DUTIES.
Section 1202 of the Panama Canal Act of 1979 (22
U.S.C. 3642) is amended to read as follows:
‘‘APPOINTMENT AND COMPENSATION; DUTIES
‘‘SEC. 1202. (a) In accordance with this chapter, the
Commission may appoint, fix the compensation of, and de-
fine the authority and duties of officers and employees
necessary for the management, operation and maintenance
of the Panama Canal and its complementary works, instal-
lations and equipment.
‘‘(b) Individuals serving in any Executive agency
(other than the Commission) or the Smithsonian Institu-
tion, including individuals in the uniform services, may,
if appointed under this section or section 1104 of this Act,
serve as officers or employees of the Commission.’’.
SEC. 8. INAPPLICABILITY OF CERTAIN BENEFITS TO CER-
TAIN NONCITIZENS.
In section 1209 of the Panama Canal Act of 1979
(22 U.S.C. 3649), subsection (a) is amended to read as
follows:
‘‘(a) Chapter 81 of title 5, United States Code, relat-
ing to compensation for work injuries, chapters 83 and
84 of such title 5, relating to retirement, chapter 87 of
such title 5, relating to life insurance, and chapter 89 of
such title 5, relating to health insurance, are applicable
to Commission employees except any individual—
‘‘(1) who is not a citizen of the United States;
‘‘(2) whose initial appointment by the Commis-
sion occurs after October 1, 1979; and
‘‘(3) who is covered by the Social Security Sys-
tem of the Republic of Panama pursuant to any pro-
vision of the Panama Canal Treaty of 1977 and re-
lated agreements.’’.
SEC. 9. TRAVEL AND TRANSPORTATION EXPENSES.
Section 1210 of the Panama Canal Act of 1979 (22
U.S.C. 3650) is amended to read as follows:
‘‘TRAVEL AND TRANSPORTATION EXPENSES
‘‘SEC. 1210. (a) Subject to subsections (b) and (c),
the Commission may pay travel and transportation ex-
penses for employees in accordance with subchapter II of
chapter 57 of title 5, United States Code.
‘‘(b) For an employee to whom section 1206 applies,
the Commission may pay travel and transportation ex-
penses associated with vacation leave for the employee and
his immediate family notwithstanding requirements re-
garding periods of service established by subchapter II of
chapter 57 of title 5, United States Code or the regula-
tions promulgated thereunder.
‘‘(c) For an employee to whom section 1206 is inap-
plicable, the Commission may pay travel and transpor-
tation expenses associated with vacation leave for the em-
ployee and his immediate family notwithstanding require-
ments regarding a written agreement concerning the dura-
tion of a continuing service obligation established by sub-
chapter II of chapter 57 of title 5, United States Code
or the regulations promulgated thereunder.’’.
SEC. 10. DEFINITIONS.
In section 1211 of the Panama Canal Act of 1979
(22 U.S.C. 3651) subsection (1)(B) is amended to read
as follows:
‘‘(B) any other Executive agency or the
Smithsonian Institution, to the extent of any
election in effect under section 1212(b) of this
Act;’’.
SEC. 11. PANAMA CANAL EMPLOYMENT SYSTEM; MERIT
AND OTHER EMPLOYMENT REQUIREMENTS.
Section 1212 of the Panama Canal Act of 1979 (22
U.S.C. 3652) is amended to read as follows:
‘‘PANAMA CANAL EMPLOYMENT SYSTEM; MERIT AND
OTHER EMPLOYMENT REQUIREMENTS
‘‘SEC. 1212. (a) The Commission shall establish a
Panama Canal Employment System and prescribe the reg-
ulations necessary for its administration. The Panama
Canal Employment System shall—
‘‘(1) be established in accordance with and be
subject to the provisions of the Panama Canal Trea-
ty of 1977 and related agreements, the provisions of
this chapter, and any other applicable provision of
law;
‘‘(2) be based on the consideration of the merit
of each employee or candidate for employment and
the qualifications and fitness of the employee to hold
the position concerned;
‘‘(3) conform, to the extent practicable and con-
sistent with the provisions of this Act, to the poli-
cies, principles, and standards applicable to the com-
petitive service;
‘‘(4) in the case of employees who are citizens
of the United States, provide for the appropriate
interchange of those employees between positions
under the Panama Canal Employment System and
positions in the competitive service; and
‘‘(5) not be subject to the provisions of title 5,
United States Code, unless specifically made applica-
ble by this Act.
‘‘(b)(1) The head of any Executive agency (other
than the Commission) and the Smithsonian Institution
may elect to have the Panama Canal Employment System
made applicable in whole or in part to personnel of that
agency in the Republic of Panama.
‘‘(2) Any Executive agency (other than the Commis-
sion) and the Smithsonian Institution, to the extent of any
election under paragraph (1) of this subsection, shall con-
duct its employment and pay practices relating to employ-
ees in accordance with the Panama Canal Employment
System.
‘‘(c) The Commission may exclude any employee or
position from coverage under any provision of this sub-
chapter, other than the rights and privileges extended
under section 1212(a)(4).’’.
SEC. 12. EMPLOYMENT STANDARDS.
In section 1213 of the Panama Canal Act of 1979
(22 U.S.C. 3653), the words ‘‘The head of each agency’’
are deleted, and the words ‘‘The Commission’’ are inserted
at the beginning of the first sentence.
SEC. 13. INTERIM APPLICATION OF CANAL ZONE MERIT
SYSTEM.
Section 1214 of the Panama Canal Act of 1979 (22
U.S.C. 3654) is deleted.
SEC. 14. RECRUITMENT AND RETENTION REMUNERATION.
In section 1217 of the Panama Canal Act of 1979
(22 U.S.C. 3657) subsection (d) is deleted.
SEC. 15. BENEFITS BASED ON BASIC PAY.
In section 1218 of the Panama Canal Act of 1979
(22 U.S.C. 3658) subsection (2) is revised to read as fol-
lows:
‘‘(2) benefits under subchapter III of chapter
83 and subchapter II of chapter 84 of title 5, United
States Code, relating to retirement;’’.
SEC. 16. ADMINISTRATION BY THE PRESIDENT.
Section 1223 of the Panama Canal Act of 1979 (22
U.S.C. 3663) is amended to read as follows:
‘‘ADMINISTRATION BY THE COMMISSION
‘‘SEC. 1223. A Central Examining Office shall be es-
tablished within the Commission. The purpose of the office
shall be to implement the provisions of the Panama Canal
Treaty of 1977 and related agreements with respect to
recruitment, examination, determination of qualification
standards, and similar matters.’’.
SEC. 17. APPLICABILITY OF CERTAIN LAWS.
Section 1224 of the Panama Canal Act of 1979 (22
U.S.C. 3664) is amended to read as follows:
‘‘APPLICABILITY OF TITLE 5, UNITED STATES CODE
‘‘SEC. 1224. In addition to those listed elsewhere in
this Act, the following provisions of title 5, United States
Code, apply to the Panama Canal Commission:
‘‘(1) Part I of title 5 (agencies generally).
‘‘(2) Chapter 21 (employee definitions).
‘‘(3) Section 2302(b)(8) (whistleblower protec-
tion).
‘‘(4) all preference eligibility provisions.
‘‘(5) Section 5514 (offset from salary).
‘‘(6) Section 5520a (garnishments).
‘‘(7) Sections 5531–5535 (dual pay and em-
ployment).
‘‘(8) Subchapter VI of chapter 55 (accumulated
and accrued leave).
‘‘(9) Subchapter IX of chapter 55 (severance
and back pay).
‘‘(10) Chapter 57 (travel and transportation).
‘‘(11) Chapter 59 (allowances).
‘‘(12) Chapter 63 (leave for CONUS PCC em-
ployees).
‘‘(13) Section 6323 (Military Leave; Reserves
and National Guardsmen).
‘‘(14) Subchapters II and III of chapter 73
(striking, Hatch Act).
‘‘(15) Chapter 75 and 77 (adverse actions and
appeals for veterans).
‘‘(16) Appendix 3 (Inspector General Act of
1978).’’.
SEC. 18. TRANSFERRED OR REEMPLOYED EMPLOYEES.
In section 1231 of the Panama Canal Act of 1979
(22 U.S.C. 3671), subsection (a)(3) is deleted.
SEC. 19. ADMINISTRATION OF SPECIAL DISABILITY BENE-
FITS.
In Section 1245 of the Panama Canal Act of 1979
(22 U.S.C. 3682)—
(1) the heading is amended to read ‘‘ADMINIS-
TRATION OF CERTAIN DISABILITY BENEFITS’’; and
(2) subsection (a) is amended to read as fol-
lows:
‘‘(a) The Commission, or any other United States
Government agency or private entity pursuant to an agree-
ment with the Commission, pursuant to the Act entitled
‘‘An Act authorizing cash relief for certain employees of
the Panama Canal not coming within the provisions of the
Canal Zone Retirement Act’’, approved July 8, 1937, as
amended (50 Stat. 478; 68 Stat. 17), may continue the
payments of cash relief to those individual former employ-
ees of the Canal Zone Government or Panama Canal Com-
pany or their predecessor agencies not coming within the
scope of the former Canal Zone Retirement Act whose
services were terminated prior to October 5, 1958, because
of unfitness for further useful service by reason of mental
or physical disability resulting from age or disease. Sub-
ject to subsection (b) of this section, that cash relief may
not exceed $1.50 per month for each year of service of
the employees so furnished relief, with a maximum of $45
per month, plus the amount of any cost-of-living increases
in such cash relief granted before October 1, 1979, pursu-
ant to section 181 of title 2 of the Canal Zone Code (as
in effect on September 30, 1979), nor be paid to any em-
ployee who, at the time of termination for disability prior
to October 5, 1958, had less than 10 years’ service with
the Canal Zone Government, the Panama Canal Company,
or their predecessor agencies on the Isthmus of Panama.’’.
SEC. 20. APPLIANCES FOR EMPLOYEES INJURED BEFORE
SEPTEMBER 7, 1916.
Section 1246 of the Panama Canal Act of 1979 (22
U.S.C. 3683) is deleted.
SEC. 21. LEAVE FOR JURY OR WITNESS SERVICE.
Section 1251 of the Panama Canal Act of 1979 is
deleted.
SEC. 22. CANAL ZONE GOVERNMENT FUNDS.
Section 1301 of the Panama Canal Act of 1979 (22
U.S.C. 3711) is deleted.
SEC. 23. PANAMA CANAL REVOLVING FUND.
Section 1302 of the Panama Canal Act of 1979 (22
U.S.C. 3712) is amended to read as follows:
‘‘PANAMA CANAL REVOLVING FUND
‘‘SEC. 1302. (a) There is established in the Treasury
of the United States a revolving fund to be known as
‘‘Panama Canal Revolving Fund’’. The Panama Canal Re-
volving Fund shall, subject to subsection (b), be available
to the Commission to carry out the purposes, functions,
and powers authorized by this Act, including for—
‘‘(1) the hire of passenger motor vehicles and
aircraft;
‘‘(2) uniforms or allowances therefor;
‘‘(3) official receptions and representation ex-
penses of the Board, the Secretary of the Commis-
sion, and the Administrator;
‘‘(4) the operation of guide services;
‘‘(5) a residence for the Administrator;
‘‘(6) disbursements by the Administrator for
employee and community projects;
‘‘(7) the procurement of expert and consultant
services;
‘‘(8) promotional activity, including the prepa-
ration, distribution, or use of any kit, pamphlet,
booklet, publication, radio, television, film, or other
media presentation designed to promote the Panama
Canal as a resource of the world shipping industry;
and
‘‘(9) the purchase and transportation to the Re-
public of Panama of passenger motor vehicles, in-
cluding large, heavy-duty vehicles.
‘‘(b)(1) There shall be deposited in the Panama
Canal Revolving Fund, on a continuing basis, toll receipts
(other than amounts of toll receipts deposited into the
Panama Canal Commission Dissolution Fund under sec-
tion 1305) and all other receipts of the Commission. Ex-
cept as provided in section 1303, no funds may be obli-
gated or expended by the Commission in any fiscal year
unless such obligation or expenditure has been specifically
authorized by law.
‘‘(2) No funds may be authorized for the use of the
Commission, or obligated or expended by the Commission
in any fiscal year in excess of—
‘‘(A) the amount of revenues deposited in the
Panama Canal Revolving Fund and the Panama
Canal Dissolution Fund during such fiscal year, plus
‘‘(B) the amount of revenues deposited in the
Panama Canal Revolving Fund before such fiscal
year and remaining unobligated at the beginning of
such fiscal year; plus
‘‘(C) the $100,000,000 borrowing authority
provided for in section 1304 of this Act.
Not later than 30 days after the end of each fiscal year,
the Secretary of the Treasury shall report to the Congress
the amount of revenues deposited in the Panama Canal
Revolving Fund during such fiscal year.
‘‘(c) With the approval of the Secretary of the Treas-
ury, the Commission may deposit amounts in the Panama
Canal Revolving Fund in any Federal Reserve bank, any
depository for public funds, or in such other places and
in such manner as the Commission and the Secretary may
agree.
‘‘(d)(1) It is the sense of the Congress that the addi-
tional costs resulting from the implementation of the Pan-
ama Canal Treaty of 1977 and related agreements should
be kept to the absolute minimum level. To this end, the
Congress declares appropriated costs of implementation to
be borne by the taxpayers over the life of such treaty
should be kept to a level no greater than the March 1979
estimate of those costs ($870,700,000) presented to the
Congress by the executive branch during consideration of
this Act by the Congress, less personnel retirement costs
of $205,000,000, which were subtracted and charged to
tolls, therefore resulting in net taxpayer cost of approxi-
mately $665,700,000, plus appropriate adjustments for
inflation.
‘‘(2) It is further the sense of the Congress that the
actual costs of implementation be consistent with the obli-
gations of the United States to operate the Panama Canal
safely and efficiently and keep it secure.’’.
SEC. 24. EMERGENCY AUTHORITY
In section 1303 of the Panama Canal Act of 1970
(22 U.S.C. 3713), the references to ‘‘section 1302(c)(1)’’
are changed to read ‘‘section 1302(b)(1).’’
SEC. 25. PRINTING.
A new section 1306 is added to the Panama Canal
Act of 1979, reading as follows:
‘‘PRINTING
‘‘SEC. 1306. Notwithstanding any other provision of
law, the Commission may purchase direct for its use print-
ing, binding, and blank-book work in the Republic of Pan-
ama when the Commission determines that such direct
purchase is in the best interest of the Government. This
section shall not affect the Commission’s authority, under
chapter 5 of title 44, United States Code, to operate a
field printing plant.’’.
SEC. 26. AIR TRAVEL.
In the Panama Canal Act of 1979, a new section
1307 is added, reading as follows:
‘‘AIR TRAVEL
‘‘SEC. 1307. Notwithstanding any other provision of
law, the Commission may contract with Panamanian car-
riers registered under the laws of the Republic of Panama
to provide air transportation to officials and employees of
the Commission: Provided, That such officials and employ-
ees may elect, for security or other reasons, to travel by
air carriers holding certificates under section 41102 of
title 49, United States Code.
SEC. 27. ACCOUNTING POLICIES.
In section 1311 of the Panama Canal Act of 1979
(22 U.S.C. 3721), the first sentence in subsection (a) is
amended to read as follows:
‘‘(a) The Commission shall establish and maintain its
accounts pursuant to chapter 91 of title 31, United States
Code, and the provisions of this chapter.’’.
SEC. 28. AUDIT.
In section 1313 of the Panama Canal Act of 1979
(22 U.S.C. 3723), subsection (c) is deleted.
SEC. 29. INTERAGENCY SERVICES; REIMBURSEMENTS.
In section 1321 of the Panama Canal Act of 1979
(22 U.S.C. 3721), subsection (e)(2) is revised 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 and persons who were receiving such services
at the expense of the Canal Zone Government before
the effective date of this Act. Notwithstanding sec-
tion 5924 of title 5, United States Code, the Com-
mission shall by regulation determine the extent to
which educational services may be defrayed under
this section.’’.
SEC. 30. POSTAL SERVICE.
Section 1331 of the Panama Canal Act of 1979 (22
U.S.C. 3741) is amended to read as follows:
‘‘POSTAL SERVICE
‘‘SEC. 1331. (a) The Commission shall take posses-
sion of and administer the funds of the Canal Zone postal
service and shall assume its obligations.
‘‘(b) Effective December 1, 1999, the Commission
shall no longer be responsible for any accumulated unpaid
balances relating to Canal Zone postal-savings deposits,
postal-savings certificates and postal money orders.
‘‘(c) Mail addressed to the Canal Zone from or
through the continental United States may be rout-
ed by the United States Postal Service to the mili-
tary post offices of the United States Forces in the
Republic of Panama. Such military post offices shall
provide the required directory services and shall ac-
cept such mail to the extent permitted under the
Panama Canal Treaty of 1977 and related agree-
ments. The Commission shall furnish personnel,
records, and other services to such military post of-
fices to assure wherever appropriate the distribution,
rerouting, or return of such mail.’’.
SEC. 31. INVESTIGATION OF ACCIDENTS OR INJURY GIVING
RISE TO CLAIM.
In section 1417 of the Panama Canal Act of 1979
(22 U.S.C. 3777), paragraph (1) is amended to read as
follows:
‘‘(1) an investigation, which shall include a
hearing by the Commission’s Board of Local Inspec-
tors, of the accident or injury giving rise to the
claim has been completed; and’’.
SEC. 32. INTERIM TOLL ADJUSTMENT.
Section 1605 of the Panama Canal Act of 1979 (22
U.S.C. 3795) is deleted.
SEC. 33. AUTHORITY OF PRESIDENT.
Section 1701 of the Panama Canal Act of 1979 (22
U.S.C. 3801) is deleted.
SEC. 34. AUTHORITY OF COMMISSION.
Section 1702 of the Panama Canal Act of 1979 (22
U.S.C. 3802) is deleted.
SEC. 35. OPERATIONS REGULATIONS.
In section 1801 of the Panama Canal Act of 1979
(22 U.S.C. 3811), the word ‘‘President’’ is changed to
read ‘‘Commission.’’
SEC. 36. TREATY TRANSITION PERIOD.
Title II of the Panama Canal Act of 1979, sections
2101; 2201–06; 2301; 2401–02 (22 U.S.C. 3831); 3841–
44; 3851–52) are deleted.
SEC. 37. DISINTERMENT, TRANSPORTATION, AND REINTER-
MENT OF REMAINS.
Section 3101 of the Panama Canal Act of 1979 (22
U.S.C. 3861) is deleted.
SEC. 38. AMENDMENTS.
Section 3302 of the Panama Canal Act of 1979 is
amended to read as follows:
‘‘AMENDMENTS; EXEMPTIONS
‘‘SEC. 3302. (a) The Commission is exempt from the
provisions of subchapter II of chapter 6 of title 15, United
States Code.
‘‘(b) Title 5, United States Code, is amended by de-
leting all references to the ‘Panama Canal Commission,’
to the ‘Panama Canal Act of 1979,’ and to ‘areas and
installations in the Republic of Panama made available to
the United States pursuant to the Panama Canal Treaty
of 
1977 
and 
related 
agreements’ 
in 
sections
3401(1)(F)(iv), 
5102(a)(1)(vi), 
5342(a)(1)(G),
5343(a)(5), 5348(b), 5373(1), 5537(c) and 5541(2)(xii)
7901(f) (2) and (3).
‘‘(c) In section 5102(c) of title 5, United States Code,
paragraph (12) is deleted and the succeeding paragraphs
are renumbered accordingly.’’.
SEC. 39. REPEALS AND REDESIGNATION.
Section 3303 of the Panama Canal Act of 1979 is
amended to read as follows:
‘‘REPEAL
‘‘SEC. 3303. Effective on the date of enactment of
this Act, the Panama Canal Code, is repealed.’’
SEC. 40. CONTINUED APPLICABILITY.
‘‘Notwithstanding any other section of this Act, sub-
chapter II of chapter 2 of Title I of the Panama Canal
Act of 1979, as amended, and as in effect on the day be-
fore the date of the enactment of this Act, shall continue
to apply to all U.S. agencies, other than the Panama
Canal Commission, to the extent of any election under sec-
tion 1212(b) of Public Law 96–70.’’
SEC. 41. REPEAL OF COMPENSATION PROVISION.
Section 1204(b) of the Panama Canal Act of 1979
(22 U.S.C. 3644(b)) is deleted and section 1204(c) of the
Panama Canal Act of 1979 (22 U.S.C. 3644(c)) is redes-
ignated as (b).
Æ