556
SEC. 3402. PRICE REQUIREMENT ON SALE OF CERTAIN PE-
TROLEUM DURING FISCAL YEAR 1997.
Notwithstanding section 7430(b)(2) of title 10, United
States Code, during fiscal year 1997, 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 Energy, of com-
parable petroleum in the same area.
TITLE XXXV—PANAMA CANAL
COMMISSION
Subtitle A—Authorization of
Appropriations
SEC. 3501. SHORT TITLE.
This subtitle may be cited as the ‘‘Panama Canal
Commission Authorization Act, Fiscal Year 1997’’.
SEC. 3502. AUTHORIZATION OF EXPENDITURES.
(a) IN GENERAL.—Subject to subsection (b), the Pan-
ama Canal Commission is authorized to use amounts in
the Panama Canal Commission Revolving Fund to make
such expenditures within the limits of funds and borrowing
authority 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 ad-
ministration of the Panama Canal for fiscal year 1997.
557
(b) LIMITATIONS.—For fiscal year 1997, the Panama
Canal Commission may expend 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 offi-
cial reception and representation expenses of the Su-
pervisory Board of the Commission;
(2) not more than $10,000 may be used for offi-
cial reception and representation expenses of the Sec-
retary of the Commission; and
(3) not more than $45,000 may be used for offi-
cial reception and representation expenses of the Ad-
ministrator of the Commission.
SEC. 3503. PURCHASE OF VEHICLES.
Notwithstanding any other provisions of law, the funds
available to the Commission shall be available for the pur-
chase and transportation to the Republic of Panama, of
passenger motor vehicles built in the United States, includ-
ing large, heavy-duty vehicles.
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.
558
Subtitle B—Amendments to
Panama Canal Act of 1979
SEC. 3521. SHORT TITLE; REFERENCES.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Panama Canal Act Amendments of 1996’’.
(b) REFERENCES.—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 considered
to be made to a section or other provision of the Panama
Canal Act of 1979 (22 U.S.C. 3601 et seq.).
SEC. 3522. DEFINITIONS AND RECOMMENDATION FOR LEG-
ISLATION.
(a) IN GENERAL.—In section 3 (22 U.S.C. 3602)—
(1) the heading is amended to read as follows:
‘‘DEFINITIONS
(2) in subsection (b), by inserting ‘‘and’’ after
the semicolon at the end of paragraph (4), by striking
the semicolon at the end of paragraph (5) and insert-
ing a period, and striking paragraphs (6) and (7);
and
(3) by striking subsection (d).
(b) CLERICAL AMENDMENT.—The table of contents in
section 1 is amended in the item relating to section 3 by
striking ‘‘and recommendation for legislation’’.
559
SEC. 3523. ADMINISTRATOR.
(a) IN GENERAL.—Section 1103 (22 U.S.C. 3613) is
amended to read as follows:
‘‘ADMINISTRATOR
‘‘SEC. 1103. (a) There shall be an Administrator of
the Commission who shall be appointed by the President,
by and with the advice and consent of the Senate, and shall
hold office at the pleasure of the President.
‘‘(b) The Administrator shall be paid compensation in
an amount, established by the Board, not to exceed level
III of the Executive Schedule.’’.
(b) SAVINGS PROVISIONS.—Nothing in this section (or
section 3549(3)) shall be considered to affect—
(1) the tenure of the individual serving as Ad-
ministrator of the Commission on the day before sub-
section (a) takes effect; or
(2) until modified under section 1103(b) of the
Panama Canal Act of 1979, as amended by subsection
(a), the compensation of the individual so serving.
SEC. 3524. DEPUTY ADMINISTRATOR AND CHIEF ENGINEER.
(a) IN GENERAL.—Section 1104 (22 U.S.C. 3614) is
amended to read as follows:
‘‘DEPUTY ADMINISTRATOR
‘‘SEC. 1104. (a) There shall be a Deputy Adminis-
trator of the Commission who shall be appointed by the
560
President. The Deputy Administrator shall perform such
duties as may be prescribed by the Board.
‘‘(b) The Deputy Administrator shall be paid com-
pensation at a rate of pay, established by the Board, which
does not exceed the rate of basic pay in effect for level IV
of the Executive Schedule, and, if eligible, shall be paid the
overseas recruitment and retention difference provided for
in section 1217 of this Act.’’.
(b) CLERICAL AMENDMENT.—The table of contents in
section 1 is amended in the item relating to section 1104
by striking ‘‘and Chief Engineer’’.
(c) SAVINGS PROVISIONS.—Nothing in this section
shall be considered to affect—
(1) the tenure of the individual serving as Dep-
uty Administrator of the Commission on the day be-
fore subsection (a) takes effect; or
(2) until modified under section 1104(b) of the
Panama Canal Act of 1979, as amended by subsection
(a), the compensation of the individual so serving.
SEC. 3525. OFFICE OF OMBUDSMAN.
Section 1113 (22 U.S.C. 3623) is amended by striking
subsection (d) and redesignating subsection (e) as subsection
(d).
561
SEC. 3526. APPOINTMENT AND COMPENSATION; DUTIES.
Section 1202 (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
(other than the Administrator and Deputy Administrator)
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. 3527. APPLICABILITY OF CERTAIN BENEFITS.
(a) IN GENERAL.—Section 1209 (22 U.S.C. 3649) is
amended to read as follows:
‘‘APPLICABILITY OF CERTAIN BENEFITS
‘‘SEC. 1209. Chapter 81 of title 5, United States Code,
relating 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 Com-
mission employees, except any individual—
562
‘‘(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.’’.
(b) CLERICAL AMENDMENT.—The table of contents in
section 1 is amended by striking the item relating to section
1209 and inserting the following:
‘‘Sec. 1209. Applicability of certain benefits.’’.
SEC. 3528. TRAVEL AND TRANSPORTATION EXPENSES.
Section 1210 (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 expenses
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
the immediate family of the employee notwithstanding re-
quirements regarding periods of service established by sub-
chapter II of chapter 57 of title 5, United States Code, or
the regulations promulgated thereunder.
563
‘‘(c) For an employee to whom section 1206 does not
apply, the Commission may pay travel and transportation
expenses associated with vacation leave for the employee
and the immediate family of the employee notwithstanding
requirements regarding a written agreement concerning the
duration of a continuing service obligation established by
subchapter II of chapter 57 of title 5, United States Code
or the regulations promulgated thereunder.’’.
SEC. 3529. CLARIFICATION OF DEFINITION OF AGENCY.
Subparagraph (B) of section 1211(1) (22 U.S.C.
3651(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. 3530. PANAMA CANAL EMPLOYMENT SYSTEM; MERIT
AND OTHER EMPLOYMENT REQUIREMENTS.
(a) IN GENERAL.—Section 1212 (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 Pan-
ama Canal Employment System and prescribe the regula-
tions necessary for its administration. The Panama Canal
Employment System shall—
564
‘‘(1) be established in accordance with and be
subject to the provisions of the Panama Canal Treaty
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 policies,
principles, and standards applicable to the competi-
tive service;
‘‘(4) in the case of employees who are citizens of
the United States, provide for the appropriate inter-
change 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 ap-
plicable in whole or in part to personnel of that agency
in the Republic of Panama.
565
‘‘(2) Any Executive agency (other than the Commis-
sion) and the Smithsonian Institution, to the extent of any
election under paragraph (1), shall conduct its employment
and pay practices relating to employees in accordance with
the Panama Canal Employment System.
‘‘(c) The Commission may exclude any employee or po-
sition from coverage under any provision of this subchapter,
other than the interchange rights extended under subsection
(a)(4).’’.
(b) SAVINGS PROVISIONS.—The Panama Canal Em-
ployment System and all elections, rules, regulations, and
orders relating thereto, as last in effect before the amend-
ment made by subsection (a) takes effect, shall continue in
effect, according to their terms, until modified, terminated,
or superseded under section 1212 of the Panama Canal Act
of 1979, as amended by subsection (a).
SEC. 3531. EMPLOYMENT STANDARDS.
Section 1213 (22 U.S.C. 3653) is amended in the first
sentence by striking ‘‘The head of each agency’’ and insert-
ing ‘‘The Commission’’.
SEC. 3532. REPEAL OF OBSOLETE PROVISION REGARDING
INTERIM 
APPLICATION 
OF 
CANAL 
ZONE
MERIT SYSTEM.
(a) REPEAL.—Section 1214 (22 U.S.C. 3654) is re-
pealed.
566
(b) CLERICAL AMENDMENT.—The table of contents in
section 1 is amended by striking the item relating to section
1214.
SEC. 3533. REPEAL OF PROVISION RELATING TO RECRUIT-
MENT AND RETENTION REMUNERATION.
Section 1217(d) (22 U.S.C. 3657(d)) is repealed.
SEC. 3534. BENEFITS BASED ON BASIC PAY.
Section 1218(2) (22 U.S.C. 3658(2)) is amended to
read as follows:
‘‘(2) benefits under subchapter III of chapter 83
and subchapter II of chapter 84 of title 5, United
States Code, relating to retirement;’’.
SEC. 3535. VESTING OF GENERAL ADMINISTRATIVE AU-
THORITY OF COMMISSION.
(a) IN GENERAL.—Section 1223 (22 U.S.C. 3663) is
amended to read as follows:
‘‘CENTRAL EXAMINING OFFICE
‘‘SEC. 1223. The Commission shall establish a Central
Examining Office. The purpose of the office shall be to im-
plement the provisions of the Panama Canal Treaty of 1977
and related agreements with respect to recruitment, exam-
ination, determination of qualification standards, and
similar matters relating to employment of the Commis-
sion.’’.
567
(b) CLERICAL AMENDMENT.—The table of contents in
section 1 is amended by striking the item relating to section
1223 and inserting the following:
‘‘Sec. 1223. Central Examining Office.’’.
SEC. 3536. APPLICABILITY OF CERTAIN LAWS.
(a) IN GENERAL.—Section 1224 (22 U.S.C. 3664) is
amended to read as follows:
‘‘APPLICABILITY OF TITLE 5, UNITED STATES CODE
‘‘SEC. 1224. The following provisions of title 5, United
States Code, apply to the Panama Canal Commission:
‘‘(1) Part I of title 5 (relating to agencies gen-
erally).
‘‘(2) Chapter 21 (relating to employee defini-
tions).
‘‘(3) Section 2302(b)(8) (relating to whistle-
blower protection) and all provisions of title 5 relat-
ing to the administration or enforcement or any other
aspect thereof, as identified in regulations prescribed
by the Commission in consultation with the Office of
Personnel Management.
‘‘(4) All provisions relating to preference eligi-
bles.
‘‘(5) Section 5514 (relating to offset from sal-
ary).
‘‘(6) Section 5520a (relating to garnishments).
568
‘‘(7) Sections 5531-5535 (relating to dual pay
and employment).
‘‘(8) Subchapter VI of chapter 55 (relating to ac-
cumulated and accrued leave).
‘‘(9) Subchapter IX of chapter 55 (relating to
severance and back pay).
‘‘(10) Chapter 57 (relating to travel and trans-
portation).
‘‘(11) Chapter 59 (relating to allowances).
‘‘(12) Chapter 63 (relating to leave).
‘‘(13) Section 6323 (relating to military leave;
Reserves and National Guardsmen).
‘‘(14) Chapter 71 (relating to labor relations).
‘‘(15) Subchapters II and III of chapter 73 (re-
lating to employment limitations and political activi-
ties, respectively) and all provisions of title 5 relating
to the administration or enforcement or any other as-
pect thereof, as identified in regulations prescribed by
the Commission in consultation with the Office of
Personnel Management.
‘‘(16) Chapter 81 (relating to compensation for
work injuries).
‘‘(17) Chapters 83 and 84 (relating to retire-
ment).
569
‘‘(18) Chapter 85 (relating to unemployment
compensation).
‘‘(19) Chapter 87 (relating to life insurance).
‘‘(20) Chapter 89 (relating to health insur-
ance).’’.
(b) CLERICAL AMENDMENT.—The table of contents in
section 1 is amended by striking the item relating to section
1224 and inserting the following:
‘‘Sec. 1224. Applicability of title 5, United States Code.’’.
SEC. 3537. REPEAL OF PROVISION RELATING TO TRANS-
FERRED OR REEMPLOYED EMPLOYEES.
Section 1231(a)(3) (22 U.S.C. 3671(a)(3)) is repealed.
SEC. 3538. ADMINISTRATION OF SPECIAL DISABILITY BENE-
FITS.
(a) IN GENERAL.—Section 1245 (22 U.S.C. 3682) is
amended by striking so much as precedes subsection (b) and
inserting the following:
‘‘ADMINISTRATION OF CERTAIN DISABILITY BENEFITS
‘‘SEC. 1245. (a)(1) The Commission, or any other
United States Government agency or private entity acting
pursuant to an agreement with the Commission, under the
Act entitled ‘An Act authorizing cash relief for certain em-
ployees of the Panama Canal not coming within the provi-
sions of the Canal Zone Retirement Act’, approved July 8,
1937 (50 Stat. 478; 68 Stat. 17), may continue the pay-
ments of cash relief to those individual former employees
570
of the Canal Zone Government or Panama Canal Company
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.
‘‘(2) Subject to subsection (b), cash relief under this
subsection may not exceed $1.50 per month for each year
of service of the employees so furnished relief, with a maxi-
mum of $45 per month, plus the amount of any cost-of-
living increases in such cash relief granted before October
1, 1979, pursuant to section 181 of title 2 of the Canal Zone
Code (as in effect on September 30, 1979), nor be paid to
any employee 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 Com-
pany, or their predecessor agencies on the Isthmus of Pan-
ama.’’.
(b) CLERICAL AMENDMENT.—The table of contents in
section 1 is amended by striking the item relating to section
1245 and inserting the following:
‘‘Sec. 1245. Administration of certain disability benefits.’’.
SEC. 3539. PANAMA CANAL REVOLVING FUND.
Section 1302 of the Panama Canal Act of 1979 (22
U.S.C. 3712) is amended to read as follows:
571
‘‘PANAMA CANAL REVOLVING FUND
‘‘SEC. 1302. (a) There is established in the Treasury
of the United States a revolving fund to be known as ‘Pan-
ama Canal Revolving Fund’. The Panama Canal Revolving
Fund shall, subject to subsection (b), be available to the
Commission to carry out the purposes, functions, and pow-
ers authorized by this Act, including for—
‘‘(1) the hire of passenger motor vehicles and air-
craft;
‘‘(2) uniforms or allowances therefor;
‘‘(3) official receptions and representation ex-
penses of the Board, the Secretary of the Commission,
and the Administrator;
‘‘(4) the operation of guide services;
‘‘(5) a residence for the Administrator;
‘‘(6) disbursements by the Administrator for em-
ployee and community projects;
‘‘(7) the procurement of expert and consultant
services;
‘‘(8) promotional activities, 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
572
‘‘(9) the purchase and transportation to the Re-
public of Panama of passenger motor vehicles built in
the United States, including large, heavy-duty vehi-
cles.
‘‘(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 section 1305)
and all other receipts of the Commission. Except as pro-
vided in section 1303, no funds may be obligated or ex-
pended 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 pro-
vided for in section 1304 of this Act.
573
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 Re-
volving 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 such other place 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 Con-
gress 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 result-
ing in net taxpayer cost of approximately $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 obliga-