SUBCHAPTER I—ADMINISTRATION AND REGULATIONS
Part 1—Panama Canal Commission
§3611. Establishment, purposes, offices, and residence of Commission
(a) For the purposes of managing, operating, and maintaining the Panama Canal and its complementary works, installations and equipment, and of conducting operations incident thereto, in accordance with the Panama Canal Treaty of 1977 and related agreements, the Panama Canal Commission (hereinafter in this chapter referred to as the "Commission") is established as a wholly owned government corporation (as that term is used in
(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 considers 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 Louisiana.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original "this Act", meaning
Amendments
1996—
Statutory Notes and Related Subsidiaries
Recommendations by President on Changes to Panama Canal Commission Structure
"(a)
"(b)
"(1) The Secretary of State.
"(2) The Secretary of Defense.
"(3) The Secretary of the Treasury.
"(4) The Secretary of Commerce.
"(5) The Secretary of Transportation.
"(6) The Panama Canal Commission.
"(c)
Report by Comptroller General on Changes to Panama Canal Commission Structure
"(a)
"(b)
"(1) The Secretary of State.
"(2) The Secretary of Defense.
"(3) The Secretary of the Treasury.
"(4) The Secretary of Commerce.
"(5) The Secretary of Transportation.
"(6) The Panama Canal Commission.
"(c)
§3612. Supervisory Board
(a) Composition of Board
The Commission shall be supervised by a Board composed of nine members, one of whom shall be an officer of the Department of Defense. The officer of the Department of Defense who shall serve on the Board shall be designated by the Secretary of Defense and may continue to serve on the Board only while continuing to serve as an officer of the Department of Defense. 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 members of the Board who are nationals of the United States shall hold no other office in, and shall not be employed by, the Government of the United States, and shall be chosen for the independent perspective they can bring to the Commission's affairs. Members of the Board who are nationals of the United States shall cast their votes as directed by the the 1 officer of the Department of Defense designated by the Secretary of Defense to be a member of the Board.
(b) Membership of Board; appointing authority; compensation and travel expenses; compensation for non-Government Board members
The President shall appoint the members of the Board. The members of the Board who are United States nationals shall be appointed by and with the advice and consent of the Senate. Each member of the Board shall hold office at the pleasure of the President and, before assuming the duties of such office, shall take an oath to discharge faithfully the duties of his office. Members of the Board shall serve without compensation but shall be allowed travel or transportation expenses, including per diem in lieu of subsistence, in accordance with
(c) Meetings; quorum; proxies
The Board shall hold meetings as provided in regulations adopted by the Commission and approved by the Secretary of Defense. A quorum for the transaction of business shall consist of a majority of the Board members of which a majority of those present are nationals of the United States. The Secretary of Defense, or the officer of the Department of Defense designated by the Secretary under subsection (a) of this section, may act by proxy for any other member of the Board if that other member authorizes the proxy in writing and signs the proxy. The proxy may be counted to establish a quorum and may be used by the Secretary of Defense, or the officer of the Department of Defense designated by the Secretary under subsection (a) of this section, to cast the vote of the absent Board member and to act for that member with all the powers that member would possess if present.
(
Editorial Notes
Amendments
1998—Subsec. (a).
1996—Subsec. (a).
1990—Subsec. (b).
1988—Subsec. (c).
1987—Subsec. (b).
1985—Subsec. (b).
1984—Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Effective Date of 1985 Amendment
§3612a. General powers of Commission
(a) Corporate seal
The Commission may adopt, alter, and use a corporate seal, which shall be judicially noticed.
(b) Bylaws
The Commission may by action of the Board of Directors adopt, amend, and repeal bylaws governing the conduct of its general business and the performance of the powers and duties granted to or imposed upon it by law.
(c) Suits by and against Commission
The Commission may sue and be sued in its corporate name, except that—
(1) the amenability of the Commission to suit is limited by Article VIII of the Panama Canal Treaty of 1977,
(2) an attachment, garnishment, or similar process may not be issued against salaries or other moneys owed by the Commission to its employees except as provided by
(3) the Commission is exempt from the payment of interest on claims and judgments.
(d) Contracts, leases, agreements, or other transactions
The Commission may enter into contracts, leases, agreements, or other transactions.
(e) Obligations and expenditures
The Commission—
(1) may determine the character of, and necessity for, its obligations and expenditures and the manner in which they shall be incurred, allowed, and paid; and
(2) may incur, allow, and pay its obligations and expenditures, subject to pertinent provisions of law generally applicable to Government corporations.
(f) Priority in payment of debts out of bankrupt estates
The Commission shall have the priority of the Government of the United States in the payment of debts out of bankrupt estates.
(g) Appointment of notaries public
(1) The Commission may appoint any United States citizen to have the general powers of a notary public to perform, on behalf of Commission employees and their dependents outside the United States, any notarial act that a notary public is required or authorized to perform within the United States. Unless an earlier expiration is provided by the terms of the appointment, any such appointment shall expire three months after the Canal Transfer Date.
(2) Every notarial act performed by a person acting as a notary under paragraph (1) shall be as valid, and of like force and effect within the United States, as if executed by or before a duly authorized and competent notary public in the United States.
(3) The signature of any person acting as a notary under paragraph (1), when it appears with the title of that person's office, 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.
(h) Limitations on authority
The authority of the Commission under this section and
(
Editorial Notes
References in Text
Amendments
1997—Subsec. (g).
Subsec. (h).
1 See References in Text note below.
§3612b. Specific powers of Commission
(a) Panama Canal management, operation, and maintenance
The Commission may manage, operate, and maintain the Panama Canal.
(b) Establishment, maintenance, and operation of activities, facilities, and appurtenances
The Commission may construct or acquire, establish, maintain, and operate such activities, facilities, and appurtenances as necessary and appropriate for the accomplishment of the purposes of this chapter, including the following:
(1) Docks, wharves, piers, and other shoreline facilities.
(2) Shops and yards.
(3) Marine railways, salvage and towing facilities, fuel-handling facilities, and motor transportation facilities.
(4) Power systems, water systems, and a telephone system.
(5) Construction facilities.
(6) Living quarters and other buildings.
(7) Warehouses, storehouses, a printing plant, and manufacturing, processing, or service facilities in connection therewith.
(8) Recreational facilities.
(c) Use of United States mails
The Commission may use the United States mails in the same manner and under the same conditions as the executive departments of the Federal Government.
(d) Necessary or appropriate actions
The Commission may take such actions as are necessary or appropriate to carry out the powers specifically conferred upon it.
(e) Commercial activities
The Commission may conduct and promote commercial activities related to the management, operation, or maintenance of the Panama Canal. Any such commercial activity shall be carried out consistent with the Panama Canal Treaty of 1977 and related agreements.
(f) Donations
(1) The Commission may seek and accept donations of funds, property, and services from individuals, foundations, corporations, and other private and public entities for the purpose of carrying out its promotional activities.
(2) The Commission shall establish written guidelines setting forth the criteria to be used in determining whether the acceptance of funds, property, or services authorized by paragraph (1) would reflect unfavorably upon the ability of the Commission (or any employee of the Commission) to carry out its responsibilities or official duties in a fair and objective manner or would compromise the integrity or the appearance of the integrity of its programs or of any official in those programs.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (b), was in the original "this Act", meaning
Amendments
1998—Subsec. (f).
1997—Subsec. (e).
§3613. Administrator
(a) Appointment
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) Compensation
The Administrator shall be paid compensation in an amount, established by the Board, not to exceed level III of the Executive Schedule.
(c) Authority for dual role
The Congress consents, for purposes of the 8th clause of article I, section 9 of the Constitution of the United States, to the acceptance by the individual serving as Administrator of the Commission of appointment by the Republic of Panama to the position of Administrator of the Panama Canal Authority. Such consent is effective only if that individual, while serving in both such positions, serves as Administrator of the Panama Canal Authority without compensation, except for payments by the Republic of Panama of travel and entertainment expenses, including per diem payments.
(d) Waiver of ethics and reporting requirements
If before the Canal Transfer Date the Republic of Panama appoints as the Administrator of the Panama Canal Authority the individual serving as the Administrator of the Commission and if that individual accepts the appointment—
(1) during any period during which that individual serves as both Administrator of the Commission and the Administrator of the Panama Canal Authority—
(A) the Foreign Agents Registration Act of 1938, as amended (
(B) that individual, with respect to participation in any particular matter as the Administrator of the Panama Canal Commission, is not subject to
(C) that individual is not subject to
(D) that individual is not subject to
(2) effective upon termination of the individual's appointment as Administrator of the Panama Canal Commission at noon on the Canal Transfer Date, that individual is not subject to
(
Editorial Notes
References in Text
Level III of the Executive Schedule, referred to in subsec. (b), is set out in
The Foreign Agents Registration Act of 1938, referred to in subsec. (d)(1)(A), is act June 8, 1938, ch. 327,
Amendments
2022—Subsec. (d)(1)(D).
1997—Subsecs. (c), (d).
1996—
Statutory Notes and Related Subsidiaries
Savings Provision
"(1) the tenure of the individual serving as Administrator of the Commission on the day before subsection (a) takes effect [section 3523(a) of
"(2) until modified under section 1103(b) of the Panama Canal Act of 1979 [subsec. (b) of this section], as amended by subsection (a), the compensation of the individual so serving."
§3614. Deputy Administrator
(a) Appointment and duties
There shall be a Deputy Administrator of the Commission who shall be appointed by the President. The Deputy Administrator shall perform such duties as may be prescribed by the Board.
(b) Compensation
The Deputy Administrator shall be paid compensation 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 differential provided for in
(
Editorial Notes
References in Text
Level IV of the Executive Schedule, referred to in subsec. (b), is set out in
Amendments
1996—
"(a) There shall be a Deputy Administrator and a Chief Engineer of the Commission, both of whom shall be appointed by the President. The Deputy Administrator and the Chief Engineer shall perform such duties as may be prescribed by the President.
"(b) The Deputy Administrator and the Chief Engineer shall each be paid compensation at a rate of pay established by the President which does not exceed the rate of basic pay in effect for grade GS–18 of the General Schedule under
1990—Subsec. (b).
Statutory Notes and Related Subsidiaries
Savings Provision
"(1) the tenure of the individual serving as Deputy Administrator of the Commission on the day before subsection (a) takes effect [section 3524(a) of
"(2) until modified under section 1104(b) of the Panama Canal Act of 1979 [subsec. (b) of this section], as amended by subsection (a), the compensation of the individual so serving."
Executive Documents
Delegation of Functions
Authority of President under this section to fix the compensation of and to define authorities and duties of Deputy Administrator delegated to Secretary of Defense, see section 1–302 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36044, set out as a note under
§3615. Consultative Committee
(a) Designation and coordination
The President shall designate, and the Secretary of State shall coordinate the participation of, representatives of the United States to the Consultative Committee to be established under paragraph 7 of Article III of the Panama Canal Treaty of 1977.
(b) Functions
The Consultative Committee shall function as a diplomatic forum for the exchange of views between the United States and the Republic of Panama. The Committee shall advise the United States Government and the Government of the Republic of Panama on matters of policy affecting the operation of the Panama Canal. The Committee shall have no authority to direct the Commission or any other department or agency of the United States to initiate or withhold action.
(
§3616. Joint Commission on the Environment
(a) Establishment; composition
The United States and the Republic of Panama, in accordance with the Panama Canal Treaty of 1977, shall establish a Joint Commission on the Environment (hereinafter in this section referred to as the "Joint Commission") to be composed of not more than three representatives of the United States and three representatives of the Republic of Panama, or such other equivalent numbers of representatives as may be agreed upon by the Governments of the two countries. The United States members of the Joint Commission shall periodically review the implementation of the Panama Canal Treaty of 1977 with respect to its impact on the environment and shall, jointly with the representatives of the Government of Panama, make recommendations to the United States Government and the Government of the Republic of Panama with respect to ways to avoid or mitigate adverse environmental impacts resulting from actions taken pursuant to such Treaty.
(b) Appointment; compensation and travel expenses
Representatives of the United States on the Joint Commission shall be appointed by the President and shall serve at the pleasure of the President. Such representatives shall serve without compensation but shall be allowed travel or transportation expenses, including per diem in lieu of subsistence, in accordance with
(c) Protection of pay, seniority, or other rights or benefits of appointed or detailed Federal employees
Any Federal employee subject to the civil service laws and regulations who is detailed to serve with, or appointed by, the United States representatives on the Joint Commission shall not lose any pay, seniority, or other rights or benefits by reason of such detail or appointment.
(d) Compensation of necessary personnel
The United States representatives on the Joint Commission may, to such extent or in such amounts as are provided in advance in appropriation Acts, appoint and fix the compensation of such personnel as the representatives of the United States on the Joint Commission may consider necessary for the participation of the United States on the Joint Commission.
(e) Rules of procedure; establishment; approval
The United States representatives on the Joint Commission may, in cooperation with the representatives of the Republic of Panama on the Joint Commission, establish rules of procedure to be used by the Joint Commission in conducting its affairs, subject to the approval of such rules by the Governments of the United States and the Republic of Panama.
(
§3617. Travel expenses
While away from their homes, regular places of business, or official stations in performance of services under this part, members of the Board of the Commission and the representatives of the United States on the Consultative Committee referred to in
(
§3618. Defense of Panama Canal
In the event of an armed attack against the Panama Canal, or when, in the opinion of the President, conditions exist which threaten the security of the Canal, the Administrator of the Commission shall, upon the order of the President, comply with such directives as the United States military officer charged with the protection and defense of the Panama Canal may consider necessary in the exercise of his duties.
(
§3619. Joint sea level canal study
(a) Committee; appointment of representatives
The President shall appoint the representatives of the United States to any joint committee or body with the Republic of Panama to study the possibility of a sea level canal in the Republic of Panama pursuant to Article XII of the Panama Canal Treaty of 1977.
(b) Transmittal of study to President of Senate and Speaker of House of Representatives
Upon the completion of any joint study between the United States and the Republic of Panama concerning the feasibility of a sea level canal in the Republic of Panama pursuant to paragraph 1 of Article XII of the Panama Canal Treaty of 1977, the text of the study shall be transmitted by the President to the President of the Senate and to the Speaker of the House of Representatives.
(c) Congressional authorization respecting construction of sea level canal
No construction of a sea level canal by the United States in the Republic of Panama shall be undertaken except with express congressional authorization after submission of the study by the President as provided in subsection (b) of this section.
(
§3620. Authority of Ambassador; independence of Commission regarding its Panama Canal responsibilities
(a) Authority of Ambassador
The United States Ambassador to the Republic of Panama shall have full responsibility for the coordination of the transfer to the Republic of Panama of those functions that are to be assumed by the Republic of Panama pursuant to the Panama Canal Treaty of 1977 and related agreements.
(b) Independence of Commission regarding its Panama Canal responsibilities
(1) The Commission shall not be subject to the direction or supervision of the United States Chief of Mission in the Republic of Panama with respect to the responsibilities of the Commission for the operation, management, or maintenance of the Panama Canal, as established in this chapter or any other Act or in the Panama Canal Treaty of 1977 and related agreements, except that the Commission shall keep the Ambassador fully and currently informed with respect to all activities and operations of the Commission.
(2) Except as provided in paragraph (1) of this subsection,
(c) Agreements for United States to provide post-transfer administrative services for certain employee benefits
(1) The Secretary of State may enter into one or more agreements to provide for the United States to furnish administrative services relating to the benefits described in paragraph (2) after December 31, 1999, and to establish appropriate procedures for providing advance funding for the services.
(2) The benefits referred to in paragraph (1) are the following:
(A) Pension, disability, and medical benefits provided by the Panama Canal Commission pursuant to
(B) Compensation for work injuries covered by
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (b)(1), was in the original "this Act", meaning
Amendments
1998—Subsec. (c).
1997—Subsec. (b)(2).
§3621. Security legislation
It is the sense of the Congress that the best interests of the United States require that the President enter into negotiations with the Republic of Panama for the purpose of arranging for the stationing of United States military forces, after the termination of the Panama Canal Treaty of 1977, in the area comprising the Canal Zone before October 1, 1979, and for the maintenance of installations and facilities, after the termination of such Treaty, for the use of United States military forces stationed in such area. The President shall report to the Congress in a timely manner the status of negotiations conducted pursuant to this section.
(
Executive Documents
Delegation of Functions
Functions vested in President by this section delegated to Secretary of State who shall perform such functions in coordination with Secretary of Defense, see section 1–401 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36044, set out as a note under
§3622. Code of conduct for Commission personnel
(a) Oath; compliance with laws of United States regarding duties and responsibilities of Federal employees
Before assuming the duties of his office or employment, each member of the Board of the Commission and each officer and employee of the Commission shall take an oath to discharge faithfully the duties of his office or employment. All employees of the Commission shall be subject to the laws of the United States regarding duties and responsibilities of Federal employees.
(b) Adoption of code of conduct; time limit; contents
Not later than 60 days after all the members of the Board of the Commission have been appointed, the Board shall adopt a code of conduct applicable to the persons referred to in subsection (a) of this section. The code of conduct shall contain provisions substantially equivalent to those contained in part 735 of title 5 of the Code of Federal Regulations on October 1, 1979. The code of conduct shall, at a minimum, contain provisions substantially equivalent to the following provisions of law:
(1) the provisions of
(2)
(3)
(4)
(5)
(6) those provisions of the laws and regulations of the Republic of Panama which are substantially equivalent to those of the United States set forth in this subsection.
(c) Investigations by Commission respecting violations; recommendations for suspension
The Commission shall investigate any allegations regarding the violation of the code of conduct adopted pursuant to subsection (b) of this section. The Commission may recommend that the President suspend from the performance of his duties any member of the Board of the Commission or any officer or employee of the Commission, pending judicial proceedings by appropriate authorities concerning such allegations.
(d) Measures to insure compliance with code of conduct
The President shall negotiate suitable arrangements with the Republic of Panama whereby each nation shall agree to take all measures within its legal authority to assure that members of the Board of the Commission comply with the code of conduct established pursuant to subsection (b) of this section. Without prejudice to such jurisdiction as the United States may have with respect to members of the Board, the provisions of law enumerated in subsection (b) of this section shall be enforced with respect to members of the Board only in accordance with such arrangements.
(e) Waiver of post-employment restrictions
(1)
(2) For purposes of paragraph (1), a covered individual is an officer or employee of the Panama Canal Authority who was an officer or employee of the Commission (other than the Administrator) and whose employment with the Commission terminated at noon on the Canal Transfer Date.
(3) This subsection is effective as of the Canal Transfer Date.
(f) Consent for acceptance of employment by Panama Canal Authority
(1) The Congress consents to the following persons accepting civil employment (and compensation for that employment) with the Panama Canal Authority for which the consent of the Congress is required by the last paragraph of section 9 of article I of the Constitution of the United States, relating to acceptance of emoluments, offices, or titles from a foreign government:
(A) Retired members of the uniformed services.
(B) Members of a reserve component of the armed forces.
(C) Members of the Commissioned Reserve Corps 1 of the Public Health Service.
(2) The consent of the Congress under paragraph (1) is effective without regard to subsection (b) of
(
Editorial Notes
Codification
In subsec. (b)(4), "
Amendments
2022—Subsec. (b)(5).
1997—Subsec. (b).
Subsecs. (e), (f).
Statutory Notes and Related Subsidiaries
Change of Name
Reference to Reserve Corps of the Public Health Service deemed to be a reference to the Ready Reserve Corps, see
Executive Documents
Delegation of Functions
Functions vested in President by subsec. (d) of this section delegated to Secretary of State, see section 1–402 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36044, set out as a note under
1 See Change of Name note below.
§3623. Office of Ombudsman
(a) Establishment; appointment of Ombudsman; functions
There is established within the Commission an Office of Ombudsman, to be directed by an Ombudsman, who shall be appointed by the Commission. It shall be the function of the Office of Ombudsman to receive individual complaints, grievances, requests, and suggestions of employees (and their dependents) of the Commission and other departments and agencies of the United States, including the Smithsonian Institution, conducting operations before October 1, 1979, in the area then comprising the Canal Zone concerning administrative problems, inefficiencies, and conflicts caused within departments and agencies of the United States, including the Smithsonian Institution, as a result of the implementation of the Panama Canal Treaty of 1977 and related agreements.
(b) Authority to make findings, render assistance, and offer recommendations
The Ombudsman shall make findings and render assistance with respect to the complaints, grievances, requests, and suggestions submitted to the Office of Ombudsman, and shall make appropriate recommendations to the Commission or any other department or agency of the United States, including the Smithsonian Institution.
(c) Effect on procedures for grievances, appeals, or administrative matters under this chapter, in other provisions of law, or in Federal regulations
The establishment of the Office of Ombudsman shall not affect any procedures for grievances, appeals, or administrative matters in any other provision of this chapter, any other provision of law, or any Federal regulation.
(d) Termination date
The Office of Ombudsman shall terminate upon the termination of the Panama Canal Treaty of 1977.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (c), was in the original "this Act", meaning
Amendments
1996—Subsecs. (d), (e).
Part 2—Employees
subpart i—panama canal commission personnel
§3641. Definitions
As used in this part—
(1) "Executive agency" has the meaning given that term in
(2) "uniformed services" has the meaning given that term in
(3) "competitive service" has the meaning given that term in
(4) "United States", when used in a geographic sense, means each of the several States and the District of Columbia.
(
Statutory Notes and Related Subsidiaries
Employment of Commission Employees by Government of Panama
"(a)
"(b)
§3642. Appointment and compensation; duties
(a) Officers and employees
In accordance with this part, the Commission may appoint, fix the compensation of, and define 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, installations, and equipment.
(b) Eligibility to serve as officer or employee of Commission
Individuals serving in any Executive agency (other than the Commission) or the Smithsonian Institution, including individuals in the uniformed services, may, if appointed under this section or
(c) Salary protection
In the case of an individual who is an officer or employee of the Commission on November 17, 1997, and who has not had a break in service with the Commission since that date, the rate of basic pay for that officer or employee may not be less than the rate in effect for that officer or employee on that date except—
(1) as provided in a collective bargaining agreement;
(2) as a result of an adverse action against the officer or employee; or
(3) pursuant to a voluntary demotion.
(
Editorial Notes
Amendments
1998—Subsec. (c).
1997—Subsec. (c).
1996—
"(a) In accordance with this part, the Panama Canal Commission may appoint without regard to the provisions of title 5, relating to appointments in the competitive service, fix the compensation of, and define the authority and duties of, officers, agents, attorneys, and employees (other than the Administrator, Deputy Administrator, and Chief Engineer) necessary for the management, operation, and maintenance of the Panama Canal and its complementary works, installations, and equipment.
"(b) Individuals serving in any Executive agency (other than the Commission) or the Smithsonian Institution, including individuals serving in the uniformed services, may, if appointed under this section or
§3643. Transfer of Federal employees
(a) Authority to enter into agreements; reemployment rights
The head of any agency may enter into agreements for the transfer or detail to the Commission of any employee of that agency serving under a permanent appointment. Any employee who so transfers or is so detailed shall, upon completion of the employee's tour of duty with the Commission, be entitled to reemployment with the agency from which the employee was transferred or detailed without loss of pay, seniority, or other rights or benefits to which the employee would have been entitled had the employee not been so transferred or been so detailed.
(b) "Agency" defined
For purposes of this section, the term "agency" means an Executive agency, the United States Postal Service, and the Smithsonian Institution.
(c) Regulations
The Office of Personnel Management shall prescribe regulations to carry out the purposes of this section.
(
§3644. Compensation of individuals in uniformed services
(a) Individual serving in a position in Commission
Except as provided in subsection (b) of this section, any individual who is serving in a position in the Commission and who is a member of a uniformed service shall continue to be paid basic pay by such uniformed service and shall not be paid by the Commission for the period of the service in the uniformed service involved.
(b) Individual appointed as Administrator, Deputy Administrator, or Chief Engineer
If the individual appointed as Administrator, Deputy Administrator, or Chief Engineer of the Commission is a member of a uniformed service, the amount of basic pay otherwise payable to the individual for service in that position shall be reduced, up to the amount of that basic pay, by the amount of the basic pay payable to the individual as a member of a uniformed service.
(c) Reimbursement to uniformed service
The Commission shall annually pay to each uniformed service amounts sufficient to reimburse that uniformed service for any basic pay paid by that uniformed service to any member of that service during any period of service in the Commission by the member.
(
§3645. Deduction from basic pay of amounts due for supplies or services
The Commission may deduct from the basic pay otherwise payable by the Commission to any officer or employee of the Commission any amount due from the officer or employee to the Commission or to any contractor of the Commission for transportation, board, supplies, or any other service. Any amount so deducted may be paid by the Commission to any contractor to whom it is due or may be credited by the Commission to any fund from which the Commission has expended such amount.
(
Editorial Notes
Amendments
1996—
§§3646, 3647. Repealed. Pub. L. 105–261, div. C, title XXXV, §3507(a), Oct. 17, 1998, 112 Stat. 2269
Section 3646,
Section 3647,
Statutory Notes and Related Subsidiaries
Effective Date of Repeal
§3648. Privileges and immunities of certain employees
The Secretary of Defense shall designate those officers and employees of the Commission and other individuals entitled to the privileges and immunities accorded under paragraph 3 of Article VIII of the Panama Canal Treaty of 1977. The Department of State shall furnish to the Republic of Panama a list of the names of such officers, employees, and other individuals and shall notify the Republic of Panama of any subsequent additions to or deletions from the list.
(
§3649. Applicability of certain benefits
(1) who is not a citizen of the United States;
(2) whose initial appointment by the Commission occurs after October 1, 1979; and
(3) who is covered by the Social Security System of the Republic of Panama pursuant to any provision of the Panama Canal Treaty of 1977 and related agreements.
(
Editorial Notes
Amendments
1996—
"(1) who is not a citizen of the United States;
"(2) whose initial appointment by the Commission occurs after October 1, 1979; and
"(3) who is covered by the Social Security System of the Republic of Panama pursuant to any provision of the Panama Canal Treaty of 1977 and related agreements."
Prior to amendment, section 1209 also contained subsecs. (b) and (c) which amended
§3650. Air transportation
(a) Notwithstanding any other provision of law (except subsection (b)), the Commission may contract with Panamanian carriers registered under the laws of the Republic of Panama to provide air transportation to officials and employees of the Commission who are citizens of the Republic of Panama.
(b) An official or employee of the Commission who is a citizen of the Republic of Panama may elect, for security or other reasons, to travel by an air carrier holding a certificate under
(
Editorial Notes
Amendments
1997—
Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d)(1).
Subsec. (d)(2).
1996—
Statutory Notes and Related Subsidiaries
Effective Date of 1997 Amendment
Effective Date
Section effective Oct. 1, 1985, see section 8 of
subpart ii—wage and employment practices
§3651. Definitions
As used in this subpart—
(1) "agency" means—
(A) the Commission, and
(B) any other Executive agency or the Smithsonian Institution, to the extent of any election in effect under
(2) "position" means a civilian position in the Commission, or in any other agency if a substantial portion of the duties and responsibilities are performed in the Republic of Panama; and
(3) "employee" means an individual serving in a position.
(
Editorial Notes
Amendments
1996—Par. (1)(B).
§3652. Panama Canal Employment System; merit and other employment requirements
(a) Establishment; merit and other employment requirements
The Commission shall establish a Panama Canal Employment System and prescribe the regulations 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 Treaty of 1977 and related agreements, the provisions of this part, 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 consistent with the provisions of this chapter, to the policies, principles, and standards applicable to the competitive 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, unless specifically made applicable by this chapter.
(b) Applicability to any Executive agency and Smithsonian Institution
(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 Commission) 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.
(3) Notwithstanding any other provision of this chapter, the Panama Canal Act Amendments of 1996 (subtitle B of title XXXV of
(c) Exclusion of employees or positions from coverage
The Commission may exclude any employee or position from coverage under any provision of this subpart, other than the interchange rights extended under subsection (a)(4).
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a)(3), (5) and (b)(3), was in the original "this Act", meaning
The Panama Canal Act Amendments of 1996, referred to in subsec. (b)(3), is subtitle B of title XXXV of div. C of
The Panama Canal Transition Facilitation Act of 1997, referred to in subsec. (b)(3), is subtitle B of title XXXV of div. C of
The Panama Canal Commission Authorization Act for Fiscal Year 1999, referred to in subsec. (b)(3), is title XXXV of div. C of
Amendments
1998—Subsec. (b)(3).
1997—Subsec. (b)(3).
1996—
Statutory Notes and Related Subsidiaries
Savings Provision
Executive Documents
Coordination of Pay and Employment Practices
For provisions requiring consultations with the Secretary of Defense for agencies under this subpart with respect to the establishment of rates of pay and other matters deemed appropriate by the Secretary in order to develop compatible or unified systems of basic pay and employment practices, see section 1–201 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36043, set out as a note under
1 So in original. Probably should be "111".
§3653. Employment standards
The Commission shall establish written standards for—
(1) determining the qualifications and fitness of employees and of candidates for employment in positions; and
(2) selecting individuals for appointment, promotion, or transfer to positions.
The standards shall conform to the provisions of this subpart, any regulations prescribed thereunder, and the Panama Canal Employment System.
(
Editorial Notes
Amendments
1996—
Executive Documents
Coordination of Pay and Employment Practices
For provisions requiring consultations with the Secretary of Defense for agencies under this subpart with respect to the establishment of rates of pay and other matters deemed appropriate by the Secretary in order to develop compatible or unified systems of basic pay and employment practices, see section 1–201 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36043, set out as a note under
§3654. Repealed. Pub. L. 104–201, div. C, title XXXV, §3532, Sept. 23, 1996, 110 Stat. 2863
Section,
§3655. Repealed. Pub. L. 105–85, div. C, title XXXV, §3523(a)(1), Nov. 18, 1997, 111 Stat. 2064
Section,
§3656. Uniform application of standards and rates
The standards established pursuant to
(
Editorial Notes
Amendments
1997—
§3657. Recruitment and retention remuneration
(a) Repealed. Pub. L. 105–261, div. C, title XXXV, §3507(a), Oct. 17, 1998, 112 Stat. 2269
(b) Restriction
Any employee described in more than one paragraph of subsection (a) of this section may qualify for a recruitment or retention differential under only one of those paragraphs.
(c) Recruitment and relocation bonuses
(1) The Commission may pay a recruitment bonus to an individual who is newly appointed to a position with the Commission, or a relocation bonus to an employee of the Commission who must relocate to accept a position, if the Commission determines that the Commission would be likely, in the absence of such a bonus, to have difficulty in filling the position.
(2) A recruitment or relocation bonus may be paid to an employee under this subsection only if the employee enters into an agreement with the Commission to complete a period of employment established in the agreement. If the employee voluntarily fails to complete such period of employment or is separated from service in such employment as a result of an adverse action before the completion of such period, the employee shall repay the entire amount of the bonus.
(3) A recruitment or relocation bonus under this subsection may be paid as a lump sum. A bonus under this subsection may not be considered to be part of the basic pay of an employee.
(d) Retention bonuses
(1) The Commission may pay a retention bonus to an employee of the Commission if the Commission determines that—
(A) the employee has unusually high or unique qualifications and those qualifications make it essential for the Commission to retain the employee for a period specified by the Commission ending not later than the Canal Transfer Date, or the Commission otherwise has a special need for the services of the employee making it essential for the Commission to retain the employee for a period specified by the Commission ending not later than the Canal Transfer Date; and
(B) the employee would be likely to leave employment with the Commission before the end of that period if the retention bonus is not paid.
(2) A retention bonus under this subsection—
(A) shall be in a fixed amount;
(B) shall be paid on a pro rata basis (over the period specified by the Commission as essential for the retention of the employee), with such payments to be made at the same time and in the same manner as basic pay; and
(C) may not be considered to be part of the basic pay of an employee.
(3) A decision by the Commission to exercise or to not exercise the authority to pay a bonus under this subsection shall not be subject to review under any statutory procedure or any agency or negotiated grievance procedure except under any of the laws referred to in
(e) Limit on compensation
Additional compensation provided under this section may not exceed 25 percent of the rate of basic pay of the individual to whom the compensation is paid.
(
Editorial Notes
Amendments
2017—Subsec. (d)(3).
1998—Subsec. (a).
"(1) before October 1, 1979, was employed by the Panama Canal Company, by the Canal Zone Government, or by any other agency in the area then known as the Canal Zone;
"(2) is an employee who was recruited on or after October 1, 1979, outside of the Republic of Panama for placement in the Republic of Panama; or
"(3) is a medical doctor employed by the Department of Defense in the Republic of Panama or by the Commission;
if, in the judgment of the head of the agency concerned, the recruitment or retention of the individual is essential."
1997—Subsecs. (c), (d).
Subsec. (e).
1996—Subsec. (d).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Savings Provision for Basic Pay
Executive Documents
Coordination of Pay and Employment Practices
For provisions requiring consultations with the Secretary of Defense for agencies under this subpart with respect to the establishment of rates of pay and other matters deemed appropriate by the Secretary in order to develop compatible or unified systems of basic pay and employment practices, see section 1–201 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36043, set out as a note under
§3657a. Quarters allowances
(a) "Position" and "employee" defined
Notwithstanding paragraphs (2) and (3) of
(1) "position" means a civilian position; and
(2) "employee" means an individual serving in a position in the Department of Defense whose permanent duty station is in the area which, before October 1, 1979, was known as the Canal Zone.
(b) Covered employees
Under regulations prescribed by or under authority of the President, the Department of Defense may grant a quarters allowance in the case of—
(1) any employee who is a citizen of the United States and who, before October 1, 1979, was employed by the Panama Canal Company, the Canal Zone Government, or any other agency, in the area then known as the Canal Zone; and
(2) any other employee who is a citizen of the United States and who (before, on, or after the effective date of this section) is or was recruited within the United States;
for whom adequate Government owned or leased quarters are not made available.
(c) Determination of amount
The amount of any quarters allowance granted to an employee under this section shall be determined in accordance with the regulations prescribed under subsection (b) of this section, except that such allowance for any period may not exceed the amount, if any, by which—
(1) the lesser of—
(A) the actual expenses for rent and utilities incurred by the employee during such period while occupying quarters other than Government owned or leased quarters; or
(B) the maximum amount which would be authorized for such employee with respect to such period under the Department of State Standardized Regulations (Government Civilians, Foreign Areas) if such employee were covered by those regulations;
exceeds
(2) the estimated total cost of rent and utilities which the employee would have been charged if Government owned or leased quarters had been provided on a rental basis during such period.
(d) Inapplicability of election under section 3652(b) of this title
The provisions of this section shall apply without regard to whether any election by the Department of Defense under
(
Editorial Notes
References in Text
For effective date of this section, referred to in subsec. (b)(2), see section 2 of
Statutory Notes and Related Subsidiaries
Effective Date
Executive Documents
Ex. Ord. No. 12520. Quarters Allowance to Department of Defense Employees in Panama
Ex. Ord. No. 12520, June 19, 1985, 50 F.R. 25683, provided:
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 1217a of the Panama Canal Act of 1979 (
Ronald Reagan.
§3658. Benefits based on basic pay
For the purpose of determining—
(1) amounts of compensation for disability or death under
(2) benefits under subchapter III of
(3) amounts of insurance under
(4) amounts of overtime pay or other premium pay;
(5) annual leave benefits; and
(6) any other benefits related to basic pay;
the basic pay of each employee shall include the rate of basic pay established for his position under
(
Editorial Notes
References in Text
Amendments
1997—
1996—Par. (2).
Executive Documents
Coordination of Pay and Employment Practices
For provisions requiring consultations with the Secretary of Defense for agencies under this subpart with respect to the establishment of rates of pay and other matters deemed appropriate by the Secretary in order to develop compatible or unified systems of basic pay and employment practices, see section 1–201 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36043, set out as a note under
1 See References in Text note below.
§3659. Repealed. Pub. L. 105–85, div. C, title XXXV, §3523(a)(2), Nov. 18, 1997, 111 Stat. 2064
Section,
§3660. Review and adjustment of classifications, grades, and pay level
An employee may request at any time that the employee's agency—
(1) review the classification of the employee's position or the grade or pay level for the employee's position, or both; and
(2) revise or adjust that classification, grade or pay level, or both, as the case may be.
The request for review and revision or adjustment shall be submitted and adjudicated in accordance with the regularly established appeals procedures of the agency.
(
§3661. Panama Canal Board of Appeals; duties
(a) Subject to the provisions of this part, the Commission shall prescribe regulations establishing a Panama Canal Board of Appeals. The regulations shall provide for the number of members of the Board and their appointment, compensation, and terms of office, the selection of a Chairman of the Board, the appointment and compensation of the Board's employees, and other appropriate matters relating to the Board.
(b) The Board shall review and determine the appeals of employees in accordance with
(
Editorial Notes
Amendments
1997—Subsec. (a).
§3662. Appeals to Board; procedures
(a) Persons entitled to appeal; form; time
An employee may appeal to the Panama Canal Board of Appeals from an adverse determination made by an agency under
(b) Personal appearance
The Board may authorize, in connection with an appeal pursuant to subsection (a) of this section, a personal appearance before the Board by the employee, or by a representative of the employee designated for that purpose.
(c) Consideration of evidence; decision
After investigation and consideration of the evidence submitted, the Board shall—
(1) prepare a written decision on the appeal;
(2) transmit its decision to the agency concerned; and
(3) transmit copies of the decision to the employee concerned or to the designated representative.
(d) Finality of decision
The decision of the Board on any question or other matter relating to an appeal is final and conclusive. The agency concerned shall take action in accordance with the decision of the Board.
(
Editorial Notes
Amendments
1997—Subsec. (a).
§3663. Repealed. Pub. L. 105–261, div. C, title XXXV, §3508(a), Oct. 17, 1998, 112 Stat. 2269
Section,
§3664. Applicability of title 5
The following provisions of title 5 apply to the Panama Canal Commission:
(1) Part I of title 5 (relating to agencies generally).
(2)
(3) Section 2302(b)(8) (relating to whistleblower protection) and all provisions of title 5 relating 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 eligibles.
(5) Section 5514 (relating to offset from salary).
(6) Section 5520a (relating to garnishments).
(7) Sections 5531–5535 (relating to dual pay and employment).
(8) Subchapter VI of
(9) Subchapter IX of
(10)
(11) Repealed.
(12) Section 6323 (relating to military leave; Reserves and National Guardsmen).
(13)
(14) Subchapters II and III of
(15)
(16) Chapters 83 and 84 (relating to retirement).
(17)
(18)
(19)
(
Editorial Notes
Amendments
1998—Par. (11).
1997—Pars. (10) to (20).
1996—
"(1) the provisions of title 5 which relate to preference eligibles;
"(2) the provisions of title 5 which relate to removal or suspension from the competitive service; and
"(3) the provisions of
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Effective Date of 1997 Amendment
Amendment by
§3665. Repealed. Pub. L. 105–85, div. C, title XXXV, §3523(a)(3), Nov. 18, 1997, 111 Stat. 2065
Section,
subpart iii—conditions of employment and placement
§3671. Transferred or reemployed employees
(a) Terms and conditions of employment
(1) With respect to any individual employed in the Panama Canal Company or the Canal Zone Government—
(A) who is transferred—
(i) to a position in the Commission; or
(ii) to a position in an Executive agency or in the Smithsonian Institution the permanent duty station of which is in the Republic of Panama (including the area known before October 1, 1979, as the Canal Zone); or
(B) who is separated by reason of a reduction in force on September 30, 1979, and is appointed to a position in the Commission before April 1, 1980;
the terms and conditions of employment set forth in paragraph (2) of this subsection shall be generally no less favorable, on or after the date of the transfer referred to in subparagraph (A) of this paragraph or the date of the appointment referred to in subparagraph (B) of this paragraph, as the case may be, than the terms and conditions of employment with the Panama Canal Company and Canal Zone Government on September 30, 1979, or, in the case of a transfer described in subparagraph (A)(ii) of this paragraph which takes place before that date, on the date of the transfer.
(2) The terms and conditions of employment referred to in paragraph (1) of this subsection are the following:
(A), (B) Repealed.
(C) premium pay and night differential;
(D) reinstatement and restoration rights;
(E) injury and death compensation benefits;
(F) to (H) Repealed.
(I) reduction-in-force rights;
(J) an employee grievance system, and the right to appeal adverse and disciplinary actions and position classification actions;
(K) veterans' preference eligibility;
(L) holidays;
(M) saved pay provisions; and
(N) severance pay benefits.
(b) Break in service
Any individual described in subsection (a)(1)(B) of this section who would have met the service requirement for early retirement benefits under
(c) Applicability of sections 903(c) and 904(a)(2) of title 20 ; sabbaticals
(1)
(2)
(3)(A) The head of a department or agency of the United States may grant a sabbatical to any teacher to whom paragraph (1) of this subsection applies for not to exceed 11 months in order to permit the teacher to engage in study or uncompensated work experience which is in the United States and which will contribute to the teacher's development and effectiveness. Basic compensation shall be paid to teachers on sabbatical under this section in the same manner and to the same extent as basic compensation would have been paid to teachers on sabbatical while employed in the Canal Zone Government school system on September 30, 1979. A sabbatical shall not result in a loss of, or reduction in, leave to which the teacher is otherwise entitled, credit for time or service, or performance or efficiency rating. The head of the department or agency may authorize in accordance with
(B) A sabbatical under this paragraph may not be granted to any teacher—
(i) more than once in any 10-year period;
(ii) unless the teacher has completed 7 years of service as a teacher; and
(iii) if the teacher is eligible for voluntary retirement with a right to an immediate annuity.
(C)(i) Any teacher in a department or agency of the United States may be granted a sabbatical under this paragraph only if the teacher agrees, as a condition of accepting the sabbatical, to serve in the civil service upon the completion of the sabbatical for a period of two consecutive years.
(ii) Each agreement required under clause (i) of this subparagraph shall provide that in the event the teacher fails to carry out the agreement (except for good and sufficient reason as determined by the head of the department or agency that granted the sabbatical) the teacher shall be liable to the United States for payment of all expenses (including salary) of the sabbatical. The amount shall be treated as a debt due the United States.
(
Editorial Notes
References in Text
This Act, referred to in subsec. (b), is
Codification
Section 1231(d) of
Amendments
1998—Subsec. (a)(2)(A), (B).
"(A) rates of basic pay;
"(B) tropical differential;".
Subsec. (a)(2)(F) to (H).
"(F) leave and travel;
"(G) transportation and repatriation benefits;
"(H) group health and life insurance;".
1997—Subsec. (c)(3)(A).
1996—Subsec. (a)(3).
"(3)(A) The provisions of this subsection shall take effect on September 27, 1979.
"(B) No spending authority (as described in
"(C) Effective October 1, 1979, any individual who, but for subparagraph (B) of this paragraph, would have been entitled to one or more payments pursuant to this subsection for periods before October 1, 1979, shall be entitled, to the extent or in such amounts as are provided in advance in appropriation Acts, to a lump sum payment equal to the total amount of all such payments."
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
§3672. Placement
(a) Citizens separated from employment with Panama Canal Company or Canal Zone Government
Any citizen of the United States—
(1) who, on March 31, 1979, was an employee of the Panama Canal Company or the Canal Zone Government;
(2) who separates or is scheduled to separate on or after such date for any reason other than misconduct or delinquency; and
(3) who is not placed in another appropriate position in the Government of the United States in the Republic of Panama;
shall, upon the employee's request, be accorded appropriate assistance for placement in vacant positions in the Government of the United States in the United States.
(b) Citizens eliminated from employment with Executive agency or Canal Zone Government as a result of implementation of Panama Canal Treaty of 1977
Any citizen of the United States—
(1) who, on March 31, 1979, was employed in the Canal Zone as an employee of an Executive agency (other than the Panama Canal Company or the Canal Zone Government) or the Smithsonian Institution;
(2) whose position is eliminated as the result of the implementation of any provision of the Panama Canal Treaty of 1977 and related agreements; and
(3) who is not appointed to another appropriate position in the Government of the United States in the Republic of Panama;
shall, upon the employee's request, be accorded appropriate assistance for placement in vacant positions in the Government of the United States in the United States.
(c) Establishment and administration of program by Office of Personnel Management
The Office of Personnel Management shall establish and administer a Government-wide placement program for all eligible employees who request appointment to positions under this section.
(d) Effective date
The provisions of this section shall take effect on September 27, 1979.
(
§3673. Transition separation incentive payments
(a) In applying to the Commission and employees of the Commission the provisions of section 663 of the Treasury, Postal Service, and General Government Appropriations Act, 1997 (as contained in section 101(f) of division A of
(1) the term "employee" shall mean an employee of the Commission who has served in the Republic of Panama in a position with the Commission for a continuous period of at least three years immediately before the employee's separation under an appointment without time limitation and who is covered under the Civil Service Retirement System or the Federal Employees' Retirement System under subchapter III of
(A) an employee described in any of subparagraphs (A) through (F) of subsection (a)(2) of section 663; or
(B) an employee of the Commission who, during the 24-month period preceding the date of separation, has received a recruitment or relocation bonus under
(2) the strategic plan under subsection (b) of section 663 shall include (in lieu of the matter specified in subsection (b)(2) of that section)—
(A) the positions to be affected, identified by occupational category and grade level;
(B) the number and amounts of separation incentive payments to be offered; and
(C) a description of how such incentive payments will facilitate the successful transfer of the Panama Canal to the Republic of Panama;
(3) a separation incentive payment under section 663 may be paid to a Commission employee only to the extent necessary to facilitate the successful transfer of the Panama Canal by the United States of America to the Republic of Panama as required by the Panama Canal Treaty of 1977;
(4) such a payment—
(A) may be in an amount determined by the Commission not to exceed $25,000; and
(B) may be made (notwithstanding the limitation specified in subsection (c)(2)(D) of section 663) in the case of an eligible employee who voluntarily separates (whether by retirement or resignation) during the 90-day period beginning on November 18, 1997, or during the period beginning on October 1, 1998, and ending on December 31, 1998;
(5) in the case of not more than 15 employees who (as determined by the Commission) are unwilling to work for the Panama Canal Authority after the Canal Transfer Date and who occupy critical positions for which (as determined by the Commission) at least two years of experience is necessary to ensure that seasoned managers are in place on and after the Canal Transfer Date, such a payment (notwithstanding paragraph (4))—
(A) may be in an amount determined by the Commission not to exceed 50 percent of the basic pay of the employee; and
(B) may be made (notwithstanding the limitation specified in subsection (c)(2)(D) of section 663) in the case of such an employee who voluntarily separates (whether by retirement or resignation) during the 90-day period beginning on November 18, 1997; and
(6) the provisions of subsection (f) of section 663 shall not apply.
(b) A decision by the Commission to exercise or to not exercise the authority to pay a transition separation incentive under this section shall not be subject to review under any statutory procedure or any agency or negotiated grievance procedure except under any of the laws referred to in
(
Editorial Notes
References in Text
Section 663 of the Treasury, Postal Service, and General Government Appropriations Act, 1997 (as contained in section 101(f) of division A of
Amendments
2017—Subsec. (b).
subpart iv—retirement
§3681. Retirement under special treaty provisions
(a) Purchase of retirement equity; individuals entitled to participate
(1) Subject to subsection (b) of this section, and under such regulations as the President may prescribe, the Secretary of the Treasury shall pay to the Social Security System of the Republic of Panama, out of funds deposited in the Treasury of the United States to the credit of the Civil Service Retirement and Disability Fund under
(A) meets the requirements of paragraph (2) of this subsection;
(B) is separated from employment in the Panama Canal Company, the Canal Zone Government, or the Commission by reason of the implementation of any provision of the Panama Canal Treaty of 1977 and related agreements; and
(C) becomes employed in a position covered by the Social Security System of the Republic of Panama through the transfer of a function or activity to the Republic of Panama from the United States or through a job placement assistance program.
(2) This subsection applies with respect to any individual only if the individual—
(A) has been credited with at least 5 years of civilian service under
(B) is not eligible for an immediate retirement annuity under
(C) elects to withdraw from the Civil Service Retirement and Disability Fund the individual's entire lump-sum credit (as defined in
(b) Limitation on amount paid to Social Security System of Republic of Panama
The amount paid to the Social Security System of the Republic of Panama with respect to any individual under subsection (a) of this section shall not exceed the individual's entire lump-sum credit (as so defined).
(c) Purchase of nontransferable deferred annuity; employees entitled to participate
(1) Pursuant to paragraph 2(b) of Annex C to the Agreement in Implementation of Article IV of the Panama Canal Treaty of 1977, the President, or the President's designee, shall purchase from a source determined by the President to be appropriate, in accordance with such regulations as the President or the President's designee may prescribe, and to such extent or in such amounts as may be provided in advance in appropriation Acts, a nontransferable deferred annuity for the benefit of each employee of an agency or instrumentality of the Government of the United States in the Republic of Panama—
(A) who is not a citizen of the United States;
(B) who was employed on October 1, 1979, and during any period before that date by an agency or instrumentality of the Government of the United States at any permanent duty station in the Republic of Panama (including, with respect to employment before that date, the area then known as the Canal Zone);
(C) who, for any period of service with such agency or instrumentality before October 1, 1979, at any such permanent duty station was not covered, by reason of that service, by the United States Civil Service Retirement system or any other Federal retirement system providing benefits similar to those retirement benefits provided by the Social Security System of the Republic of Panama; and
(D) who, on October 1, 1979, is under a Federal retirement system and, on or before that date, has accrued in one or more agencies or instrumentalities of the United States a total of 5 years or more of service which—
(i) is creditable toward any Federal retirement system as in effect on October 1, 1979;
(ii) would have been creditable toward any such retirement system if the retirement system were in effect at the time of the service accrued by the employee; or
(iii) consists of any combination of service described in clauses (i) and (ii) of this subparagraph.
(2) The retirement annuity referred to in paragraph (1) of this subsection with respect to any employee will cover retroactively, from October 1, 1979, all periods of service, described in subparagraph (D) of that paragraph, by that employee at any permanent duty station in the Republic of Panama (including the area known before that date as the Canal Zone) in agencies and instrumentalities of the Government of the United States during which that employee was not covered by the United States Civil Service Retirement System or any other Federal retirement system providing benefits similar to those retirement benefits provided by the Social Security System of the Republic of Panama.
(
Editorial Notes
Amendments
1997—Subsec. (c)(2).
Executive Documents
Delegation of Functions
Functions vested in President by subsec. (a)(1) delegated to Director of Office of Personnel Management and function vested in President by subsec. (c)(1) of this section delegated to Secretary of Defense, see sections 1–105 and 1–403 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36043, 36045, set out as a note under
§3682. Administration of certain disability benefits
(a) Continuation of cash relief payments to employees under Act of July 8, 1937
(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 employees of the Panama Canal not coming within the provisions of the Canal Zone Retirement Act", approved July 8, 1937 (
(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 maximum of $45 per month, plus the amount of any cost-of-living increases in such cash relief granted before October 1, 1979, pursuant to
(b) Additional amounts for relief under subsection (a)
An additional amount of $20 per month shall be paid to each person who receives payment of cash relief under subsection (a) of this section and shall be allowed without regard to the limitations contained therein.
(c) Increases in cash relief payments
Each cash relief payment made pursuant to this section shall be increased on the same effective date and by the same percent, adjusted to the nearest dollar, as civil service retirement annuities are increased under the cost-of-living adjustment provisions of
(d) Cash relief payments to widows
The Commission may pay cash relief to the widow of any former employee of the Canal Zone Government or the Panama Canal Company who, until the time of his death, receives or has received cash relief under subsection (a) of this section, under
(1) a woman legally married to such employee at the time of his termination for disability and at his death;
(2) a woman who, although not legally married to such former employee at the time of his termination, had resided continuously with him for at least five years immediately preceding the employee's termination under such circumstances as would at common law make the relationship a valid marriage and who continued to reside with him until his death; and
(3) a woman who has not remarried or assumed a common-law relationship with any other person.
Cash relief granted to such a widow shall not at any time exceed 50 percent of the rate at which cash relief, inclusive of any additional payment under subsection (b) of this section, would be payable to the former employee were he then alive.
(e) Applicability of subchapter III of chapter 83 of title 5
Subchapter III of
(
Editorial Notes
References in Text
The reference to the Act of July 8, 1937, in subsecs. (a)(1), (d), and (e), is act July 8, 1937, ch. 443,
The Canal Zone Code, referred to in subsec. (a)(2), was enacted by
Section 13(a)(1) of Act July 25, 1958, referred to in subsec. (e), probably means section 13(a) of
Amendments
1996—
Subsec. (a).
§3683. Repealed. Pub. L. 104–201, div. C, title XXXV, §3546(a)(6), Sept. 23, 1996, 110 Stat. 2868
Section,
subpart v—application to related personnel
§3691. Individuals considered employees
(a) Individuals considered employees for purposes of certain sections
For the purposes of sections 3646,1 3671, and 3672 of this title, including any amendment made by sections 1231, 1241, and 1242 of this Act, the United States Attorney for the District of the Canal Zone and the Assistant United States Attorneys and their clerical assistants, and the United States Marshal for the District of the Canal Zone and his deputies and clerical assistants shall be considered employees of the Commission.
(b) Individuals considered employees for certain purposes
For the purposes of this Act, including any amendment made by this Act, the Executive Director of the Canal Zone Civilian Personnel Policy Coordinating Board, the Manager, Central Examining Office, and their staffs shall be considered to have been employees of the Panama Canal Company with respect to service in those positions before October 1, 1979, and as employees of the Commission with respect to service in those positions on or after that date.
(
Editorial Notes
References in Text
Section 1231 of this Act, referred to in subsec. (a), amended
Section 1241 of this Act, referred to in subsec. (a), amended
Section 1242 of this Act, referred to in subsec. (a), amended
This Act, referred to in subsec. (b), is
Statutory Notes and Related Subsidiaries
Effective Date
1 See References in Text note below.
subpart vi—labor-management relations
§3701. Labor-management relations
(a) Applicability of chapter 71 of title 5
Nothing in this chapter shall be construed to affect the applicability of
(1) the definition of "employee" shall be applied without regard to clause (i) of section 7103(a)(2) of such title 5 which relates to nationality and citizenship;
(2) a unit shall be considered to be appropriate notwithstanding the fact that it includes any supervisor if that supervisor's position (or type of position) was, before October 1, 1979, represented before the Panama Canal Company by a labor organization that included employees who were not supervisors; and
(3) any negotiated grievance procedures under
(b) United States laws applicable
Labor-management and employee relations of the Commission, other Executive agencies, and the Smithsonian Institution, their employees, and organizations of those employees, in connection with operations conducted in that area of the Republic of Panama which, on September 30, 1979, was the Canal Zone, shall be governed and regulated solely by the applicable laws, rules, and regulations of the United States.
(c) Resolution of collective bargaining impasses
(1) This subsection applies to any matter that becomes the subject of collective bargaining between the Commission and the exclusive representative for any bargaining unit of employees of the Commission during the period beginning on November 18, 1997, and ending on the Canal Transfer Date.
(2)(A) The resolution of impasses resulting from collective bargaining between the Commission and any such exclusive representative during that period shall be conducted in accordance with such procedures as may be mutually agreed upon between the Commission and the exclusive representative (without regard to any otherwise applicable provisions of
(B) The Federal Services Impasses Panel shall not have jurisdiction to resolve any impasse between the Commission and any such exclusive representative in negotiations over a procedure for resolving impasses.
(3) If the Commission and such an exclusive representative do not reach an agreement concerning a procedure for resolving impasses with respect to a bargaining unit and transmit notice of the agreement under paragraph (2) on or before July 1, 1998, the following shall be the procedure by which collective bargaining impasses between the Commission and the exclusive representative for that bargaining unit shall be resolved:
(A) If bargaining efforts do not result in an agreement, either party may timely request the Federal Mediation and Conciliation Service to assist in achieving an agreement.
(B) If an agreement is not reached within 45 days after the date on which either party requests the assistance of the Federal Mediation and Conciliation Service in writing (or within such shorter period as may be mutually agreed upon by the parties), the parties shall be considered to be at an impasse and the Federal Mediation and Conciliation Service shall immediately notify the Federal Services Impasses Panel of the Federal Labor Relations Authority, which shall decide the impasse.
(C) If the Federal Services Impasses Panel fails to issue a decision within 90 days after the date on which notice under subparagraph (B) is received by the Panel (or within such shorter period as may be mutually agreed upon by the parties), the efforts of the Panel shall be terminated.
(D) In such a case, the Chairman of the Panel (or another member in the absence of the Chairman) shall immediately determine the matter by a drawing (conducted in such manner as the Chairman (or, in the absence of the Chairman, such other member) determines appropriate) between the last offer of the Commission and the last offer of the exclusive representative, with the offer chosen through such drawing becoming the binding resolution of the matter.
(4) In the case of a notice of agreement described in paragraph (2)(A) that is transmitted to the Congress as described in the second sentence of that paragraph after July 1, 1998, the impasse resolution procedures covered by that notice shall apply to any impasse between the Commission and the other party to the agreement that is unresolved on the date on which that notice is transmitted to the Congress.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original "this Act", meaning
Amendments
1997—Subsec. (c).
1993—Subsec. (a)(3).
Statutory Notes and Related Subsidiaries
Effective Date of 1993 Amendment
"(a)
"(b)
Part 3—Funds and Accounts
subpart i—funds
§3711. Repealed. Pub. L. 104–201, div. C, title XXXV, §3546(a)(8), Sept. 23, 1996, 110 Stat. 2868
Section,
§3712. Panama Canal Revolving Fund
(a) Establishment
There is established in the Treasury of the United States a revolving fund to be known as "Panama 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 powers authorized by this chapter, including for the following purposes:
(1) The hire of passenger motor vehicles and aircraft.
(2) Uniforms or allowances therefor.
(3) Official receptions and representation expenses 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 employee and community projects.
(7) The procurement of expert and consultant services.
(8) Promotional activities, including the preparation, 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.
(9) The purchase and transportation to the Republic of Panama of passenger motor vehicles, including large, heavy-duty vehicles.
(10) Payment to the Panama Canal Authority, not later than the Canal Transfer Date, of such amount as is computed by the Commission to be the future amount of severance pay to be paid by the Panama Canal Authority to employees whose employment with the Authority is terminated, to the extent that such severance pay is attributable to periods of service performed with the Commission before the Canal Transfer Date (and assuming for purposes of such computation that the Panama Canal Authority, in paying severance pay to terminated employees, will provide for crediting of periods of service with the Commission).
(b) Tolls and other receipts into Panama Canal Revolving Fund; restriction on use of funds
(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
(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 Commission 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
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) Authority of Commission to make deposits
With the approval of the Secretary of the Treasury, the Commission may deposit amounts in the Panama Canal Revolving Fund in any Federal Reserve bank, any depositary for public funds, or such other place and in such manner as the Commission and the Secretary may agree.
(d) Costs of implementation
(1) It is the sense of the Congress that the additional costs resulting from the implementation of the Panama 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 chapter 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 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 obligations of the United States to operate the Panama Canal safely and efficiently and keep it secure.
(e) Termination of Commission and Office of Transition Administration; transfer of Fund
(1) The Panama Canal Commission and the Office of Transition Administration (described in section 3504 of
(2) Upon termination pursuant to paragraph (1), the Panama Canal Revolving Fund shall be transferred to the General Services Administration (GSA). GSA shall use the amounts in the Fund to make payments of any outstanding liabilities of the Commission, as well as any expenses associated with the termination of the Office of Transition Administration and the Commission. The fund shall be the exclusive source available for payment of any outstanding liabilities of the Commission.
(
Editorial Notes
References in Text
This chapter, referred to in subsecs. (a) and (d)(1), was in the original "this Act", meaning
Section 3504 of
Amendments
2004—Subsec. (e).
1997—Subsec. (a).
Subsec. (a)(1) to (7).
Subsec. (a)(8).
Subsec. (a)(9).
Subsec. (a)(10).
1996—
Subsec. (c)(1).
Subsec. (c)(2), (3).
Subsec. (e).
1992—Subsec. (c)(1).
Subsec. (c)(3)(A).
1988—Subsecs. (e), (f).
1987—
Subsecs. (a) to (d).
Subsec. (e).
1985—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1987 Amendment
Effective Date of 1985 Amendment
Termination of Reporting Requirements
For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which a report required under subsec. (b) of this section is listed on page 142), see section 3003 of
§3712a. Authority to lease office space
Notwithstanding section 210 of the Federal Property and Administrative Services Act of 1949 (
(
Editorial Notes
References in Text
Section 210 of the Federal Property and Administrative Services Act of 1949 (
Codification
Section was enacted as part of the Omnibus Budget Reconciliation Act of 1987, and not as part of the Panama Canal Act of 1979 which comprises this chapter.
1 See References in Text note below.
§3713. Panama Canal emergency authority
If authorizing legislation described in
(
Editorial Notes
Amendments
1996—
1987—
"(a) On October 1, 1979, the Secretary of the Treasury shall establish and thereafter shall maintain in the Treasury a fund to be known as the 'Panama Canal Emergency Fund'. There are authorized to be appropriated for deposit in such Fund (1) for the fiscal year beginning on October 1, 1979, $40,000,000, and (2) for any fiscal year beginning on or after October 1, 1980, such additional sums as may be specifically authorized by law for such fiscal year.
"(b) The Commission may make withdrawals from the Panama Canal Emergency Fund by check in order to defray emergency expenses and to insure the continuous, efficient, and safe operation of the Panama Canal, if funds appropriated for the operation and maintenance of the Canal are insufficient for such purposes. Any withdrawal from such Fund to cover increased costs attributable to unprogrammed increases in traffic may not be made in amounts greater than the revenues from such increased traffic. Such Fund shall not be available for payments to Panama under Article XIII of the Panama Canal Treaty of 1977. Any withdrawal from such fund or expenditure made under this subsection shall be reported forthwith by the Commission to the Congress and to the Office of Management and Budget."
Statutory Notes and Related Subsidiaries
Effective Date of 1987 Amendment
Amendment by
§3714. Borrowing authority
(a) Limitation on amount; issuance of notes and other obligations
The Panama Canal Commission may borrow from the Treasury, for any of the purposes of the Commission, not more than $100,000,000 outstanding at any time. For this purpose, the Commission may issue to the Secretary of the Treasury its notes or other obligations—
(1) which shall have maturities (of not later than December 31, 1999) agreed upon by the Commission and the Secretary of the Treasury, and
(2) which may be redeemable at the option of the Commission before maturity.
(b) Restrictions on use
Amounts borrowed under this section shall not be available for payments to Panama under Article XIII of the Panama Canal Treaty of 1977.
(c) Effect on investment interest in Panama Canal
Amounts borrowed under this section shall increase the investment of the United States in the Panama Canal, and repayment of such amounts shall decrease such investment.
(d) Report to Congress
The Commission shall report to the Congress and to the Office of Management and Budget on each exercise of borrowing authority under this section.
(
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Jan. 1, 1988, see section 5429 of
§3714a. Dissolution of Commission
(a) Study and report
(1) The Commission shall conduct a study of—
(A) the costs associated with the dissolution of the Commission, including the composition, location, and costs of the office authorized to be established under subsection (b); and
(B) costs and liabilities incurred or administered by the Commission that will not be paid before the date of that dissolution.
(2) The Commission shall submit to the Congress, by not later than September 30, 1996, a report on the findings and conclusions of the study under this subsection. The report shall include an estimate of the period of time which may be required to close out the affairs of the Commission after the termination of the Panama Canal Treaty of 1977.
(b) Termination office
The Commission shall during fiscal year 1998 establish an office to close out the affairs of the Commission that are still pending after the termination of the Panama Canal Treaty of 1977.
(c) Panama Canal Commission Dissolution Fund
(1) There is established in the Treasury of the United States a fund to be known as the "Panama Canal Commission Dissolution Fund" (hereinafter in this section referred to as the "Fund"). The Fund shall be managed by the Commission until the termination of the Panama Canal Treaty of 1977 and by the office established under subsection (b) thereafter.
(2)(A) Subject to paragraph (5), the Fund shall be available after September 30, 1998, to pay—
(i) the costs of operating the office established under subsection (b); and
(ii) the costs and liabilities associated with dissolution of the Commission, including such costs incurred or identified after the termination of the Panama Canal Treaty of 1977.
(B) Payments from the Fund made during the period beginning on October 1, 1998, and ending with the termination of the Panama Canal Treaty of 1977 shall be subject to the approval of the Board provided for in
(3) The Fund shall consist of—
(A) such amounts as may be deposited into the Fund by the Commission, from amounts collected as toll receipts, to pay the costs described in paragraph (2); and
(B) amounts credited to the Fund under paragraph (4).
(4)(A) The Secretary of the Treasury shall invest excess amounts in the Fund in public debt securities with maturities suitable to the needs of the Fund, as determined by the manager of the Fund.
(B) Securities invested under subparagraph (A) shall bear interest at rates determined by the Secretary of the Treasury, taking into consideration current market yields on outstanding marketable obligations of the United States of comparable maturity.
(C) Interest earned on securities invested under subparagraph (A) shall be credited to and form part of the Fund.
(5)(A) Amounts in the Fund may not be obligated or expended in any fiscal year unless the obligation or expenditure is specifically authorized by law.
(B) The office established by subsection (b) is authorized to expend or obligate funds from the Fund for the purposes enumerated in clauses (i) and (ii) of paragraph (2)(A) until October 1, 2004.
(6) The Fund shall terminate on October 1, 2004. Amounts in the Fund on that date shall be deposited in the general fund of the Treasury of the United States.
(
Editorial Notes
Amendments
1999—Subsec. (c)(5).
Statutory Notes and Related Subsidiaries
Operation of Office of Transition Administration and Oversight of Close-Out Activities
"(b)
"(1)
"(2)
"(3)
"(4)
"(5)
"(c)
§3714b. Printing
(a)
(b) This section shall not affect the Commission's authority, under
(
Editorial Notes
Amendments
1997—Subsec. (a).
§3715. Establishment of Compensation Fund
There is established in the Treasury of the United States the Panama Canal Commission Compensation Fund (hereafter in this Act referred to as the "Fund").
(
Editorial Notes
References in Text
This Act, referred to in text, is
Codification
Section was enacted as part of the Panama Canal Commission Compensation Fund Act of 1988, and not as part of the Panama Canal Act of 1979 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 1988, see section 10 of
§3715a. Operation of Fund
(a) Deposits to Fund
The Panama Canal Commission shall make deposits on a regular basis to the Fund, beginning on October 1, 1988, to accumulate an amount sufficient to defray the estimated total cost of liability for the workers' compensation benefits and other payments payable under
(b) Calculation of amounts to be deposited
The amounts deposited under subsection (a) shall be based upon periodic actuarial studies conducted by experts or consultants whose services are procured by the Panama Canal Commission by contract. The amounts of such deposits shall take into consideration interest earnings in accordance with subsection (c) of this section and expected cost of living adjustments as provided in
(c) Investment of amounts in Fund
The Secretary of the Treasury, upon the request of the Secretary of Labor, shall invest moneys in the Fund in public debt securities which shall bear interest at rates determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturity. Such interest shall be credited to and form a part of the Fund.
(
Editorial Notes
Codification
Section was enacted as part of the Panama Canal Commission Compensation Fund Act of 1988, and not as part of the Panama Canal Act of 1979 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 1988, see section 10 of
§3715b. Transfers from Fund for compensation benefits
The Secretary of the Treasury shall, upon request of the Secretary of Labor, transfer funds from the Fund to the Employees' Compensation Fund to reimburse the Employees' Compensation Fund for the total cost of workers' compensation benefits and other payments described in
(
Editorial Notes
Codification
Section was enacted as part of the Panama Canal Commission Compensation Fund Act of 1988, and not as part of the Panama Canal Act of 1979 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 1988, see section 10 of
§3715c. Final evaluation of Fund; deficiency or surplus in Fund
(a) Final evaluation of Fund
By March 31, 1998, the Secretary of Labor shall, on the basis of an actuarial study conducted by experts or consultants whose services are procured by the Secretary of Labor by contract, make a final determination of the amounts estimated to be necessary to meet expenditures for workers' compensation benefits and other payments described in
(b) Deficiency or surplus in Fund
If amounts in the Fund are not sufficient to meet expenditures as determined by the Secretary of Labor under subsection (a) for workers' compensation benefits and other payments described in
(c) Continuity of Fund
(1) Amounts in the Fund (including amounts transferred as a result of the final determination made under subsection (a)) shall be maintained by the Secretary of the Treasury, shall be made available for transfer to the Employees' Compensation Fund in such amounts as are requested by the Secretary of Labor pursuant to
(2) At such time as the Secretary of Labor certifies that no further liability exists for workers compensation benefits or other payments described in
(
Editorial Notes
Codification
Section was enacted as part of the Panama Canal Commission Compensation Fund Act of 1988, and not as part of the Panama Canal Act of 1979 which comprises this chapter.
Amendments
1997—Subsec. (a).
1990—
Subsec. (a).
Subsec. (b).
Subsec. (c).
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 1988, see section 10 of
§3715d. Continuation of benefits
The provisions of
(
Editorial Notes
Codification
Section was enacted as part of the Panama Canal Commission Compensation Fund Act of 1988, and not as part of the Panama Canal Act of 1979 which comprises this chapter.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Oct. 1, 1988, see section 10 of
subpart ii—accounting policies and audits
§3721. Accounting policies
(a) Establishment and maintenance of accounts; specifications
The Commission shall establish and maintain its accounts pursuant to
(b) Regulations establishing the basis of accounting for assets
The Commission may issue regulations establishing the basis of accounting for the assets which are made available for the use of the Commission. Such regulations may provide for depreciation of the net replacement value of the assets which will ultimately require replacement to maintain the service capacity of the Panama Canal. Such regulations may also provide that depreciation of such assets be recorded ratably over their service lives.
(
Editorial Notes
Amendments
1996—Subsec. (a).
§3722. Repealed. Pub. L. 104–66, title II, §2201(a), Dec. 21, 1995, 109 Stat. 732
Section,
§3723. Audits
(a) Financial transactions of Commission; access to books, accounts, etc.
Notwithstanding any other provision of law, and subject to subsection (c), financial transactions of the Commission shall be audited by the Comptroller General of the United States (hereinafter in this chapter referred to as the "Comptroller General"). In conducting any such audit, the appropriate representatives of the Comptroller General shall have access to all books, accounts, financial records, reports, files, and other papers, items, or property in use by the Commission and necessary to facilitate such audit, and such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians. Any such audit shall first be conducted with respect to the fiscal year in which this chapter becomes effective. An audit performed under this section is subject to the requirements of paragraphs (2), (3), and (5) of
(b) Omitted
(c) Independent auditors
At the discretion of the Board provided for in
(d) Examination and report on Commission's financial forecast
In addition to auditing the financial statements of the Commission, the Comptroller General (or the independent auditor if one is employed pursuant to subsection (c)) shall, in accordance with standards for an examination of a financial forecast established by the American Institute of Certified Public Accountants, examine and report on the Commission's financial forecast that it will be in a position to meet its financial liabilities on December 31, 1999.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (a), was in the original "this Act", meaning
Codification
Subsec. (b) of this section, which required the Comptroller General, not later than six months after the end of each fiscal year, to submit to Congress a report of the audit conducted pursuant to subsec. (a) of this section, terminated, effective May 15, 2000, pursuant to section 3003 of
Amendments
1998—Subsecs. (a), (b), (d).
1996—
Subsec. (a).
Subsec. (b).
Subsec. (c).
Subsec. (d).
Subsec. (e).
subpart iii—interagency accounts
§3731. Reimbursements
(a) Reimbursement of the Employees' Compensation Fund, Bureau of Employees' Compensation, Department of Labor, and other Government departments and agencies by Commission
The Commission shall reimburse the Employees' Compensation Fund, Bureau of Employee's Compensation, Department of Labor, for the benefit payments to the Commission's employees, and shall also reimburse other Government departments and agencies for payments of a similar nature made on its behalf.
(b) Reimbursement of Commission by Department of Defense
The Department of Defense shall reimburse the Commission for amounts expended by the Commission in maintaining defense facilities in standby condition for the Department of Defense.
(c) Designation of funds of Department of Defense or any other department or agency of United States to carry out purposes of this subsection
Notwithstanding any other provision of law, funds appropriated (for any fiscal year beginning after September 30, 1979) to or for the use of the Department of Defense, or to any other department or agency of the United States as may be designated by the President to carry out the purposes of this subsection, shall be available for—
(1) conducting the educational and health care activities, including kindergartens and college, carried out by the Canal Zone Government and the Panama Canal Company before October 1, 1979, and
(2) providing the services related thereto to the categories of persons to which such services were provided before October 1, 1979.
Notwithstanding any other provision of law, the Department of Defense, or any department or agency designated by the President to provide health care services to those categories of persons referred to in this subsection, shall provide such services to such categories of persons on a basis no less favorable than that applied to its own employees and their dependents.
(d) Reimbursement to departments or agencies furnishing services
Amounts expended for furnishing services referred to in subsection (c) of this section to persons eligible to receive them, less amounts payable by such persons, shall be fully reimbursable to the department or agency furnishing the services, except to the extent that such expenditures are the responsibility of that department or agency. The funds of the Commission shall be available for such reimbursements on behalf of—
(1) employees of the Commission, and
(2) other persons authorized to receive such services who are eligible to receive them pursuant to the Panama Canal Treaty of 1977 and related agreements.
The appropriations or funds of any other department or agency of the United States conducting operations in the Republic of Panama, including the Smithsonian Institution, shall be available for reimbursements on behalf of employees of such department or agency and their dependents.
(e) Repealed. Pub. L. 105–261, div. C, title XXXV, §3507(a), Oct. 17, 1998, 112 Stat. 2269
(f) Reimbursement of United States by Republic of Panama for salaries and other employment costs
For purposes of the reimbursement of the United States by the Republic of Panama for the salaries and other employment costs of employees of the Commission who are assigned to assist the Republic of Panama in the operation of activities which are transferred to that Government as a result of any provision of the Panama Canal Treaty of 1977 and related agreements, which reimbursement is provided for in paragraph 8 of Article 10 of that Treaty, the Commission shall be deemed to be the United States of America.
(g) Operation of Canal Zone College
Notwithstanding any other provision of law, the President, through the appropriate department or agency of the United States, shall, until January 1, 2000, operate the educational institution known as the "Canal Zone College". Such institution shall continue to provide, insofar as practicable, the level of services which it offered immediately before October 1, 1979.
(h) Prohibition of funds for uses other than Commission activities
Except as expressly provided in this chapter, funds available to the Panama Canal Commission may not be made available to any other agency as that term is defined in
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (h), was in the original "this Act", meaning
Amendments
1998—Subsec. (e).
1997—Subsec. (c)(1).
Subsec. (c)(2).
Subsec. (e)(2).
1996—Subsec. (d).
Subsec. (e).
1994—Subsec. (e)(2).
1992—Subsec. (e)(1).
1988—Subsec. (h).
1985—Subsec. (e).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Effective Date of 1988 Amendment
Amendment by
Effective Date of 1985 Amendment
Amendment by
subpart iv—postal matters
§3741. Postal service
(a) Possession or administration of funds by Commission
The Commission shall take possession of and administer the funds of the Canal Zone postal service and shall assume its obligations.
(b) Expiration of responsibility for unpaid balances
Effective December 1, 1999, neither the Commission nor the United States Government shall be responsible for the distribution of any accumulated unpaid balances relating to Canal Zone postal-savings deposits, postal-savings certificates, and postal money orders.
(c) Mail addressed to Canal Zone from or through United States
Mail addressed to the Canal Zone from or through the continental United States may be routed by the United States Postal Service to the military post offices of the United States Armed Forces in the Republic of Panama. Such military post offices shall provide the required directory services and shall accept such mail to the extent permitted under the Panama Canal Treaty of 1977 and related agreements. The Commission shall furnish personnel, records, and other services to such military post offices to assure wherever appropriate the distribution, rerouting, or return of such mail.
(
Editorial Notes
Amendments
1996—
subpart v—accounts with republic of panama
§3751. Payments to Republic of Panama
(a) Payments required under Panama Canal Treaty; annual audit
The Commission shall pay to the Republic of Panama those payments required under paragraph 5 of Article III and paragraph 4 of Article XIII of the Panama Canal Treaty of 1977. Payments made under paragraph 5 of Article III of such Treaty shall be audited annually by the Comptroller General and any overpayment, as determined in accordance with Understanding (1) incorporated in the Resolution of Ratification of the Panama Canal Treaty (adopted by the United States Senate on April 18, 1978), for the services described in that paragraph which are provided shall be refunded by the Republic of Panama or set off against amounts payable by the United States to the Republic of Panama under paragraph 5 of Article III of the Panama Canal Treaty of 1977.
(b) Excess operating revenues
In determining whether operating revenues exceed expenditures for the purpose of payments to the Republic of Panama under paragraph 4(c) of Article XIII of the Panama Canal Treaty of 1977, such operating revenues in a fiscal period shall be reduced by (1) all costs of such period as shown by the accounts established pursuant to
(c) Retroactive taxation
The President shall not accede to any interpretation of paragraph 1 of Article IX of the Panama Canal Treaty of 1977 which would permit the Republic of Panama to tax retroactively organizations and businesses operating, and citizens of the United States living, in the Canal Zone before October 1, 1979.
(d) Accumulated unpaid balances
Any accumulated unpaid balance under paragraph 4(c) of Article XIII of the Panama Canal Treaty of 1977 at the termination of such Treaty shall be payable only to the extent of any operating surplus in the last year of the Treaty's duration, and nothing in such paragraph may be construed as obligating the United States to pay after the date of the termination of the Treaty any such unpaid balance which has accrued before such date.
(e) Toll rates; payment of costs of operation and maintenance of canal with unexpended funds
As provided in
(f) Prohibitions
The prohibitions contained in this section and in
(g) Exemption from automatic budget cuts
Notwithstanding any other provision of law, no reduction under any order issued pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 shall apply to the Commission if the implementation of such an order would result in a payment to the Republic of Panama under paragraph 4(c) of article XIII of the Panama Canal Treaty of 1977 and this section.
(
Editorial Notes
References in Text
The Balanced Budget and Emergency Deficit Control Act of 1985, referred to in subsec. (g), is title II of
Amendments
1998—Subsec. (f).
1997—Subsec. (f).
1996—Subsec. (f).
1987—Subsec. (e)(7).
1986—Subsec. (g).
Statutory Notes and Related Subsidiaries
Effective Date of 1998 Amendment
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1986 Amendment
§3752. Transactions with Republic of Panama
(a) Commission assistance on reimbursable basis
The Commission may, on a reimbursable basis, provide to the Republic of Panama materials, supplies, equipment, work, or services, including water and electric power, requested by the Republic of Panama, at such rates as may be agreed upon by the Commission and the Republic of Panama. Payment for such materials, supplies, equipment, work, or services may be made by direct payment by the Republic of Panama to the Commission or by offset against amounts due the Republic of Panama by the United States.
(b) Commission assistance on nonreimbursable basis
The Commission may provide office space, equipment, supplies, personnel, and other in-kind services to the Panama Canal Authority on a nonreimbursable basis.
(c) Other department of agency assistance on reimbursable basis
Any executive department or agency of the United States may, on a reimbursable basis, provide to the Panama Canal Authority materials, supplies, equipment, work, or services requested by the Panama Canal Authority, at such rates as may be agreed upon by that department or agency and the Panama Canal Authority.
(
Editorial Notes
Amendments
1997—
§3753. Disaster relief
If an emergency arises because of disaster or calamity by flood, hurricane, earthquake, fire, pestilence, or like cause, not foreseen or otherwise provided for, and occurring in the Republic of Panama in such circumstances as to constitute an actual or potential hazard to health, safety, security, or property in the areas and installations made available to the United States pursuant to the Panama Canal Treaty of 1977 and related agreements, the Commission may expend funds available to the Commission for such purpose, and utilize or furnish materials, supplies, equipment, and services for relief, assistance, and protection.
(
Editorial Notes
Amendments
1987—
Statutory Notes and Related Subsidiaries
Effective Date of 1987 Amendment
Amendment by
§3754. Congressional restraints on property transfers and tax expenditures; formal apprisal of Panama
(a) The Congress enacts this section in the exercise of its authority under Article IV, section 3, clause 2 of the Constitution of the United States to dispose of and make necessary rules and regulations with respect to property of the United States.
(b) Prior to the transfer of property of the United States located in the Republic of Panama to the Republic of Panama pursuant to
(1) in fulfilling its obligations under the Panama Canal Treaty of 1977, the United States shall make no payments to the Republic of Panama derived from tax revenues of the United States;
(2) the United States retains full discretion and authority to determine whether and the extent to which tax revenues of the United States may be expended in exercising United States rights and carrying out United States responsibilities under the Panama Canal Treaty of 1977 and related agreements;
(3) no tax revenues of the United States shall be made available for obligations and expenditure after October 1, 1979, for purposes of implementing the Panama Canal Treaty of 1977 and related agreements, unless hereafter specifically approved by the Congress through the authorization and appropriation process;
(4) the total amount expended by the Commission from funds available for the use of the Commission shall not exceed the total amount deposited in the Panama Canal Revolving Fund; and
(5) the foregoing paragraphs of this subsection do not apply to expenditures made by the United States in fulfilling United States obligations to transfer the remains of our honored dead from Mount Hope Cemetery in the former Canal Zone to an appropriate and dignified resting place in accordance with Reservation 3 to the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal.
(
Editorial Notes
Amendments
1987—Subsec. (b)(4).
Statutory Notes and Related Subsidiaries
Effective Date of 1987 Amendment
Amendment by
Executive Documents
Delegation of Functions
Functions vested in President by subsec. (b) delegated to Secretary of State, see section 1–402 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36044, set out as a note under
Part 4—Claims for Injuries to Persons or Property
subpart i—general provisions
§3761. Settlement of claims generally
(a) Claims for injury to, or loss of, property or personal injury or death arising from operation of Panama Canal
Subject to the provisions of this part, the Commission may adjust and pay claims for injury to, or loss of, property or for personal injury or death, arising from the operation of the Panama Canal or related facilities and appurtenances.
(b) Limitation on amount of claims
The Commission may pay not more than $50,000 on any claim described in subsection (a).
(c) Source of award; release
An award made to a claimant under this section shall be payable out of any moneys made available to the Commission. The acceptance by the claimant of the award shall be final and conclusive on the claimant, and shall constitute a complete release by the claimant of his claim against the United States and against any employee of the United States acting in the course of his employment who is involved in the matter giving rise to the claim.
(d) Action for damages on claims cognizable under this part; action against officers or employees of United States for injuries resulting from acts outside scope of their employment
Except as provided in
(e) Applicability of provisions of section 1346 and chapter 171 of title 28
The provisions of
(
Editorial Notes
Amendments
1996—Subsec. (c).
1987—Subsec. (b).
subpart ii—vessel damage
§3771. Injuries in locks of canal; adjustment and payment of claims
(a) Subject to
(b)(1) 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 pay not more than $50,000 on the claim, 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
(
Editorial Notes
Amendments
1998—Subsec. (a).
1997—Subsec. (a).
1987—Subsec. (b)(1).
1985—Subsec. (a).
Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1985 Amendment
"(a)
"(b)
"(1)
"(2)
§3772. Injuries outside locks
Subject to
(
Editorial Notes
Amendments
1998—
1997—
1985—
Statutory Notes and Related Subsidiaries
Effective Date of 1985 Amendment
Amendment by
§3773. Measure of damages generally
In determining the amount of the award of damages for injuries to a vessel for which the Commission is determined to be liable, there may be included—
(1) the actual or estimated cost of repairs;
(2) charter hire actually lost by the owners, or charter hire actually paid, depending upon the terms of the charter party, for the time the vessel is undergoing repairs;
(3) maintenance of the vessel and wages of the crew, if they are found to be actual additional expenses or losses incurred outside of the charter hire; and
(4) other expenses which are definitely and accurately shown to have been incurred necessarily and by reason of the accident or injuries.
Agent's fees, or commissions, or other incidental expenses of similar character, or any items which are indefinite, indeterminable, speculative, or conjectural may not be allowed. The Commission shall be furnished such vouchers, receipts, or other evidence as may be necessary in support of any item of a claim. If a vessel is not operated under charter but by the owner directly, evidence shall be secured if available as to the sum for which vessels of the same size and class can be chartered in the market. If the charter value cannot be determined, the value of the vessel to its owners in the business in which it was engaged at the time of the injuries shall be used as a basis for estimating the damages for the vessel's detention; and the books of the owners showing the vessel's earnings about the time of the accident or injuries shall be considered as evidence of probable earnings during the time of detention. If the books are unavailable, such other evidence shall be furnished as may be necessary.
(
§3774. Delays for which no responsibility is assumed
The Commission is not responsible, and may not consider any claim, for demurrage or delays caused by—
(1) landslides or other natural causes;
(2) necessary construction or maintenance work on Canal locks, terminals, or equipment;
(3) obstruction arising from accidents;
(4) time necessary for admeasurement;
(5) congestion of traffic;
(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 Commission acting within the scope of the employee's official duties; or
(7) except as specially set forth in this subpart, any other cause.
(
Editorial Notes
Amendments
1985—Par. (6).
Statutory Notes and Related Subsidiaries
Effective Date of 1985 Amendment
Amendment by
§3775. Settlement of claims
The Commission, by mutual agreement, compromise, or otherwise, may adjust and determine the amounts of the respective awards of damages pursuant to this subpart. Such amounts may be paid only out of money allotted for the maintenance and operation of the Panama Canal. Acceptance by a claimant of the amount awarded to him shall be deemed to be in full settlement of such claim against the Government of the United States.
(
Editorial Notes
Amendments
1996—
1985—
Statutory Notes and Related Subsidiaries
Effective Date of 1985 Amendment
Amendment by
§3776. Actions on claims
Subject to
(
Editorial Notes
Amendments
1998—
1997—
1996—
1985—
Statutory Notes and Related Subsidiaries
Effective Date of 1985 Amendment
Amendment by
§3777. Investigation of accident or injury giving rise to claim
Notwithstanding any other provision of law, a claim may not be considered under this subpart, or an action for damages lie thereon, unless, prior to the departure from the Panama Canal of the vessel involved—
(1) an investigation of the accident or injury giving rise to the claim has been completed, which shall include a hearing by the Board of Local Inspectors of the Commission; and
(2) the basis for the claim has been laid before the Commission.
(
Editorial Notes
Amendments
1996—Par. (1).
§3778. Board of local inspectors
(a) The President shall provide for the establishment of a Board of Local Inspectors of the Panama Canal Commission which shall perform, in accordance with regulations prescribed by the President—
(1) the investigations required by
(2) such other duties with respect to marine matters as may be assigned by the President.
(b) In conducting any investigation pursuant to subsection (a) of this section, the Board of Local Inspectors established pursuant to such subsection may summon witnesses, administer oaths, and require the production of books and papers necessary for such investigation.
(
Executive Documents
Delegation of Functions
Functions vested in President by this section delegated to Secretary of Defense, see section 1–303 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36044, set out as a note under
§3779. Insurance
(a) The Commission is authorized to purchase insurance to protect the Commission against major and unpredictable revenue losses or expenses arising from catastrophic marine accidents or other unpredictable events.
(b)(1) The Commission may by regulation require as a condition of transit through the Panama Canal or presence in the Panama Canal or waters adjacent thereto that any potential claimant under
(2) In a claim under
(3) In regulations under this subsection, the Commission may prohibit consideration or payment by it of claims presented by or on behalf of an insurer or subrogee of a claimant in a case for which the Commission has required insurance under this subsection.
(
Editorial Notes
Amendments
1998—
1987—
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to any claim arising on or after Dec. 23, 1985, see section 7(b)(1) of
Part 5—Public Property
§3781. Assets and liabilities of Panama Canal Company
All property and other assets of the Panama Canal Company shall revert to the United States on October 1, 1979, and, except as otherwise provided by law, the United States shall assume the liabilities, including contractual obligations, of the Panama Canal Company then outstanding. The Commission may use such property, facilities, and records of the Panama Canal Company as are necessary to carry out its functions.
(
§3782. Transfers and cross-servicing between agencies
(a) Transfers of facilities, buildings, structures, improvements, stocks and equipment located in the Republic of Panama
In the interest of economy and maximum efficiency in the utilization of property and facilities of the United States, there are authorized to be transferred between departments and agencies of the United States, with or without reimbursement, such facilities, buildings, structures, improvements, stock, and equipment located in the Republic of Panama, and used for their activities therein, as may be mutually agreed upon by the departments and agencies involved and approved by the President of the United States or his designee.
(b) Cross-servicing agreements
The Commission may enter into cross-servicing agreements with any other department or agency of the United States for the use of facilities, furnishing of services, or performance of functions.
(c) Transfer of records to Government of Republic of Panama
The Commission, any department or agency of the United States, or any United States court in the Republic of Panama is authorized to transfer to the Government of the Republic of Panama any record of such Commission, department, agency, or court, or copy thereof, including any record acquired from the Canal Zone Government or Panama Canal Company (including any vital statistics record), to any other department, agency, or court of the United States if such action is determined by the Commission, the head of the department or agency concerned, or the judge of the court concerned to be in the interest of the United States. Transfer of any record or copy thereof under this section to the Government of the Republic of Panama shall be made under the coordination of and with the approval of the United States Ambassador to the Republic of Panama.
(d) Applicability to Smithsonian Institution
The provisions of this section shall apply to the Smithsonian Institution.
(
Executive Documents
Delegation of Functions
Functions vested in President by subsec. (a) of this section delegated to Secretary of Defense, see section 1–106 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36043, set out as a note under
§3783. Disposition of property of United States
No property of the United States located in the Republic of Panama may be disposed of except pursuant to law enacted by the Congress.
(
§3784. Transfer of property to Republic of Panama
(a) Conveyance of Panama Railroad
(1) On October 1, 1979, the Secretary of State may convey to the Republic of Panama the Panama Railroad and such property located in the area which, immediately before such date, comprised the Canal Zone and which is not within the land and water areas the use of which is made available to the United States pursuant to the Panama Canal Treaty of 1977 and related agreements.
(2) Property transferred pursuant to paragraph (1) of this subsection may not include buildings and other facilities, except housing, located outside such areas, the use of which is retained by the United States pursuant to the Panama Canal Treaty of 1977 and related agreements.
(b) Transfer of certain property pursuant to Panama Canal Treaty of 1977; report to Congress
With respect to the transfer of all other property (not described in subsection (a)(1) of this section) to be transferred in accordance with the terms of the Panama Canal Treaty of 1977 and related agreements, the Secretary of State may convey such property from time to time in accordance with the terms of such Treaty and related agreements. Before the transfer of any such property, the President must submit a written report to the Congress—
(1) precisely identifying and describing the particular property to be transferred;
(2) certifying the state of compliance by the Republic of Panama with such Treaty and related agreements; and
(3) setting forth the reasons for the conveyance being made at the particular time.
(c) Restriction on transfer of Panama Canal and certain other property
The Panama Canal, and such other property referred to in paragraph 2(d) of Article XIII of the Panama Canal Treaty of 1977 that has not been previously transferred in accordance with paragraphs 2(a), 2(b), and 2(c) of such Article, shall not be transferred to the Republic of Panama prior to December 31, 1999.
(
Editorial Notes
Amendments
1985—Subsec. (b).
Executive Documents
Delegation of Functions
Functions vested in President by subsec. (b) delegated to Secretary of State, see section 1–402 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36044, set out as a note under
Part 6—Tolls for Use of Panama Canal
§3791. Prescription of measurement rules and rates of tolls
The Commission may, subject to the provisions of this chapter, 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.
(
Editorial Notes
References in Text
This chapter, referred to in text, was in the original "this Act", meaning
Amendments
1996—
"(a) The President is authorized, subject to the provisions of this part, to 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 the use of the Canal.
"(b) Such rules of measurement and tolls prevailing on October 1, 1979, shall continue in effect until changed as provided in this part."
§3792. Bases of tolls
(a) Tolls based on net vessel tons and on displacement tonnage
Tolls on merchant vessels, army and navy transports, colliers, tankers, hospital ships, and supply ships shall be based on net vessel tons of one hundred cubic feet each of actual earning capacity, or its equivalent, determined in accordance with the rules for the measurement of vessels for the Panama Canal, and tolls on other floating craft shall be based on displacement tonnage. The tolls on vessels in ballast without passengers or cargo may be less than the tolls for vessels with passengers or cargo. Tolls for small vessels (including yachts), as defined by the Commission, may be set at rates determined by the Commission without regard to the preceding provisions of this subsection.
(b) Toll rates prescribed to cover all costs of operation and maintenance of Panama Canal
Tolls shall be prescribed at rates calculated to produce revenues to cover as nearly as practicable all costs of maintaining and operating the Panama Canal (including costs authorized to be paid from the Panama Canal Dissolution Fund under
(c) Payment of tolls by vessels of United States
Vessels operated by the United States, including vessels of war and auxiliary vessels, and ocean-going training ships owned by the United States and operated by State nautical schools, shall pay tolls.
(d) Levy of tolls
The levy of tolls is subject to the provisions of section 1 of Article III of the treaty between the United States of America and Great Britain signed November 18, 1901, of Article I of the treaty between the United States of America and the Republic of Colombia signed April 6, 1914, and of Articles II, III, and VI of the Treaty Concerning Permanent Neutrality and Operation of the Panama Canal, between the United States of America and the Republic of Panama, signed September 7, 1977.
(
Editorial Notes
Amendments
1997—Subsec. (a).
1992—Subsec. (a).
Subsec. (b).
1987—Subsec. (b).
Statutory Notes and Related Subsidiaries
Effective Date of 1987 Amendment
Amendment by
§3793. Interest on investments
(a) Calculation of interest
For purposes of
(b) Increases and decreases in investment of United States
The investment of the United States described in subsection (a) of this section—
(1) shall be increased by—
(A) the amount of expenditures from the Panama Canal Revolving Fund,,1 and
(B) the value of property transferred to the Commission by any other department or agency of the United States, as determined in accordance with subsection (c) of this section; and
(2) shall be decreased by—
(A) the amount of the funds deposited in the Panama Canal Revolving Fund,
(B) the value of property transferred to the Republic of Panama pursuant to this chapter or any other Act on or after October 1, 1979, and
(C) the value of property transferred by the Commission to any other department or agency of the United States.
(c) Value of property transferred to Commission
The value of property transferred to the Commission by any other department or agency of the United States shall be determined by the Director of the Office of Management and Budget. In computing such value, such Director shall give due consideration to the cost and probable earning power of the transferred property, or the usable value to the Commission if clearly less than cost, and shall make adequate provisions for depreciation, obsolescence, and other determinable decreases in value. Insofar as practicable, the value of such transferred property shall exclude any portion of such value properly allocable to national defense.
(d) Payment and deposit of interest
The Panama Canal Commission shall pay to the Treasury of the United States interest on the investment of the United States, as determined under this section. Such interest shall be deposited in the general fund of the Treasury.
(
Editorial Notes
References in Text
This chapter, referred to in subsec. (b)(2)(B), was in the original "this Act", meaning
Amendments
1987—Subsec. (b)(1)(A).
Subsec. (b)(2)(A).
Subsec. (d).
1985—Subsec. (b)(2)(A).
Statutory Notes and Related Subsidiaries
Effective Date of 1987 Amendment
Amendment by
Effective Date of 1985 Amendment
Amendment by
§3794. Procedures
(a) Publication of notice of proposed changes in rules of measurement and rates of tolls in Federal Register; participation by interested parties; availability of analysis
The Commission shall publish in the Federal Register notice of any proposed change in the rules of measurement or rates of tolls referred to in
(1) the costs of operating and maintaining the Panama Canal;
(2) the competitive position of the use of the Canal in relation to other means of transportation;
(3) the interests of the United States and the Republic of Panama in maintaining their domestic fleets;
(4) the impact of such a change in rates of tolls on the various geographical areas of each of the two countries; and
(5) the interests of both countries in maximizing their international commerce.
(b) Revision of proposed rules of measurement or rates of tolls
After consideration of the relevant matter presented, the Commission may revise the proposed rules of measurement or rates of tolls, as the case may be, except that, in the case of rates of tolls, if such revision proposes rates greater than those originally proposed, a new analysis of the proposed rates shall be made available to the public, and a new notice of the revised proposal shall be published in the Federal Register apprising interested persons of the opportunity to participate further in the proceedings through submission of written data, views, or arguments, and participation in a public hearing to be held not less than 30 days after the date of publication of the new notice. The procedure set forth in this subsection shall be followed for any subsequent revision of the proposed rates of tolls by the Commission which proposes rates higher than those in the preceding proposal.
(c) Publication of notice of changes in rules of measurement and rates of tolls in Federal Register
After the proceedings have been conducted pursuant to subsections (a) and (b), the Commission may change the rules of measurement or rates of tolls, as the case may be. The Commission shall publish notice of any such change in the Federal Register not less than 30 days before the effective date of the change.
(d) Judicial review
Action to change the rules of measurement for the Panama Canal or the rates of tolls for the use of the Canal pursuant to this part shall be subject to judicial review in accordance with
(
Editorial Notes
Amendments
1996—Subsec. (a).
Subsec. (c).
Subsec. (d).
Subsec. (e).
Subsec. (f).
§3795. Repealed. Pub. L. 104–201, div. C, title XXXV, §3546(a)(1), Sept. 23, 1996, 110 Stat. 2867
Section,
Statutory Notes and Related Subsidiaries
Effective Date
Part 7—General Regulations
§§3801, 3802. Repealed. Pub. L. 104–201, div. C, title XXXV, §3546(a)(2), (3), Sept. 23, 1996, 110 Stat. 2867
Section 3801,
Section 3802,
Part 8—Shipping and Navigation
subpart i—operation of canal
§3811. Operating regulations
The Commission may prescribe, and from time to time amend, regulations governing—
(1) the operation of the Panama Canal;
(2) the navigation of the harbors and other waters of the Panama Canal and areas adjacent thereto, including the ports of Balboa and Cristobal;
(3) the passage and control of vessels through the Panama Canal or any part thereof, including the locks and approaches thereto;
(4) pilotage in the Panama Canal or the approaches thereto through the adjacent waters; and
(5) the licensing of officers or other operators of vessels navigating the waters of the Panama Canal and areas adjacent thereto, including the ports of Balboa and Cristobal.
(
Editorial Notes
Amendments
1996—
subpart ii—inspection of vessels
§3821. Vessels subject to inspection
With the exception of private vessels merely transiting the Panama Canal, and of public vessels of all nations, vessels navigating the waters of the Panama Canal shall be subject to an annual inspection of hulls, boilers, machinery, equipment, and passenger accommodations.
(
§3822. Foreign vessels
With respect to a foreign vessel of a country which has inspection laws approximating those of the United States, any such vessel having an unexpired certificate of inspection duly issued by the authorities of such country shall not be subject to an inspection other than that necessary to determine whether the vessel, its boilers, and its lifesaving equipment are as stated in the certificate of inspection. A certificate of inspection may not be accepted as evidence of lawful inspection under this section unless similar privileges are granted to vessels of the United States under the laws of the country to which the vessel belongs.
(
§3823. Regulations governing inspection
The Commission shall prescribe, and from time to time may amend, regulations concerning the inspection of vessels conforming as nearly as practicable to the laws and regulations governing marine inspection by the United States Coast Guard.
(
Statutory Notes and Related Subsidiaries
Transfer of Functions
For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see