Panama Canal Amendments Act of 1985
PL 99-209 (H.R.729), enacted 12/23/1985

99 STAT. 1716 
PUBLIC LAW 99-209—DEC. 23, 1985 
Public Law 99-209 
99th Congress 
An Act 
Dec. 23, 1985 
[H.R. 729] 
Panama Canal 
Amendments 
Act of 1985. 
22 use 3601 
note. 
Supra. 
22 use 3761. 
To amend the Panama Canal Act of 1979 in order that claims for vessels damaged 
outside-the-locks may be resolved in the same manner as those vessels damaged 
inside the locks, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "Panama Canal Amendments Act of 
1985". 
SEC. 2. FILING CLAIMS FOR DAMAGES. 
(a) INJURIES IN LOCKS OF CANAL.—Section 1411 of the Panama 
Canal Act of 1979 (22 U.S.C. 3771) is amended— 
(1) in the first sentence— 
(A) by striking out "The" and inserting in lieu thereof 
"(a) Subject to subsection (b) of this section, the"; and 
(B) by striking out "under the control of officers or 
employees of the United States" and inserting in lieu 
thereof "when the injury was proximately caused by neg-
ligence or fault on the part of an officer or employee of the 
United States acting within the scope of his emplojrment 
and in the line of his duties in connection with the oper-
ation of the Canal"; 
(2) by striking out the second sentence; and 
(3) by adding at the end thereof the following new sentence: 
"No payment for damages on a claim may be made under this 
section unless the claim is filed with the Commission within 2 years 
after the date of the injury, or within 1 year after the date of the 
enactment of the Panama Canal Amendments Act of 1985, which-
ever is later.". 
(b) VESSELS WITHOUT PILOTS IN LOCKS OF CANAL.—Section 1411 of 
the Panama Canal Act of 1979 is amended by adding at the end 
thereof the following: 
"(bXl) With respect to a claim under subsection (a) for damages 
for injuries to a vessel or its cargo, if, at the time the injuries were 
incurred, the navigation or movement of the vessel was not under 
the control of a Panama Canal pilot, the Commission may adjust 
and pay the claim only if the amount of the claim does not exceed 
$50,000, unless the injuries were caused by another vessel under the 
control of a Panama Canal pilot. 
"(2) The provisions of subsections (c) through (e) of section 1401 of 
this Act shall apply to any claim described in paragraph (1).". 
(c) INJURIES OUTSIDE LOCKS.—Section 1412 of the Panama Canal 
Act of 1979 (22 U.S.C. 3772) is amended— 
(1) in the first sentence by striking out ", and when the 
amount of the claim does not exceed $120,000"; and 
(2) by adding at the end thereof the following new sentence: 
"No payment for damages on a claim may be made under this 
PUBLIC LAW 99-209—DEC. 23, 1985 
99 STAT. 1717 
section unless the claim is filed with the Commission within 2 
years after the date of the injury, or within 1 year after the date 
of the enactment of the Panama Canal Amendments Act of 
1985, whichever is later.". 
SEC. 3. DELAYS FOR MARINE ACCIDENT INVESTIGATIONS. 
Section 1414(6) of the Panama Canal Act of 1979 (22 U.S.C. 3774(6)) 
is amended to read as follows: 
"(6) investigation of a marine accident that is conducted 
within 24 hours after the accident occurs, except that any 
liability of the Commission beyond that 24-hour period shall be 
limited to the extent to which the accident was caused, or 
contributed to, by the negligence of an employee of the Commis-
sion acting within the scope of the employee's official duties; 
or . 
SEC. 4. SETTLEMENT OF CLAIMS. 
Section 1415 of the Panama Canal Act of 1979 (22 U.S.C. 3775) is 
amended— 
(1) in subsection (a)— 
(A) by striking out "(a)"; 
(B) by striking out "Subject to subsection (b) of this 
section, the" and inserting in lieu thereof "The"; and 
(C) by amending the second sentence to read as follows: 
"Such amounts may be paid only out of money appro-
priated or allotted for the maintenance and operation of the 
Panama Canal."; and 
(2) by striking out subsection (b). 
SEC. 5. ACTIONS ON CLAIMS. 
Section 1416 of the Panama Canal Act of 1979 (22 U.S.C. 3776) is 
amended— 
(1) in the first sentence by striking out "1411" and inserting 
in lieu thereof "1411(a) or 1412"; 
22 use 3771, 
(2) by amending the third sentence to read as follows: "Any 3772. 
judgment obtained against the Commission in an action under 
this subchapter may be paid only out of money appropriated or 
allotted for the maintenance and operation of the Panama 
Canal."; and 
(3) by adding at the end thereof the following new sentences: 
"Any action on a claim under this section shall be barred unless 
the action is brought within one year after the date on which 
the Commission mails to the claimant written notification of 
the Commission's final determination with respect to the claim, 
or within one year after the date of the enactment of the 
Panama Canal Amendments Act of 1985, whichever is later. 
Attorneys appointed by the Commission shall represent the 
Commission in any action arising under this subchapter.". 
SEC. 6. INSURANCE. 
(a) IN GENERAL.—Subchapter II of chapter 4 of title I of the 
Panama Canal Act of 1979 is amended by adding at the end thereof 
the following new section: 
99 STAT. 1718 
PUBLIC LAW 99-209—DEC. 23, 1985 
"INSURANCE 
22 use 3779. 
"SEC. 1419. The Commission is authorized to purchase insurance 
to protect the Commission against major and unpredictable revenue 
losses or expenses arising from catastrophic marine accidents.", 
(b) CONFORMING AMENDMENT.—The table of contents of the 
Panama Canal Act of 1979 is amended by inserting after the item 
relating to section 1418 the following new item: 
"1419. Insurance.". 
22 u s e 3771 
SEC. 7. APPLICABILITY OF ACT. 
(a) RETROACTIVE APPUCABILITY.—The amendments made by 
subsections (a) and (c) of section 2, and the amendments made by 
sections 4 and 5 of this Act, shall apply to any claim arising on or 
after October 1,1979. 
(b) FUTURE APPUCABILITY.— 
(1) SECTIONS 3 AND 6.—The amendments made by sections 3 
and 6 of this Act shall apply to any claim arising on or after the 
date of the enactment of this Act. 
(2) SECTION 2 (b).—The amendment made by subsection G
>
) of 
section 2 shall apply to any claim arising from an incident 
occurring on or after the date of the enactment of this Act. 
Approved December 23, 1985. 
LEGISLATIVE HISTORY—H.R. 729: 
HOUSE REPORT No. 99-184 (eomm. on Merchant Marine and Fisheries). 
SENATE REPORT No. 99-206 (Comm. on Armed Services). 
CONGRESSIONAL RECORD, Vol. 131 (1985): 
July 22, considered and passed House. 
Dec. 11, considered and passed Senate.