[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3282 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3282

 To authorize expenditures for fiscal year 1997 for the operation and 
        maintenance of the Panama Canal, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 22, 1996

   Mr. Bateman (for himself and Mr. Taylor of Mississippi) (both by 
   request) introduced the following bill; which was referred to the 
  Committee on National Security, and in addition to the Committee on 
   Government Reform and Oversight, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To authorize expenditures for fiscal year 1997 for the operation and 
        maintenance of the Panama Canal, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Panama Canal Commission 
Authorization Act, Fiscal year 1997''.

SEC. 2. AUTHORIZATION OF EXPENDITURES.

    (a) In General.--Subject to subsection (b), the Panama Canal 
Commission is authorized to make such expenditures within the limits of 
funds and borrowing authority available to it in accordance with law, 
and to make such contracts and commitments, to be derived from the 
Panama Canal Commission Revolving Fund, as may be necessary under the 
Panama Canal Act of 1979 (22 U.S.C. 3601 et seq.), for the operation, 
maintenance, improvement and administration of the Panama Canal for 
fiscal year 1997
    (b) Limitations.--For fiscal year 1997, the Panama Canal Commission 
may expend from funds in the Panama Canal Commission Revolving Fund not 
more than $73,000 for reception and representation expenses of which--
            (1) not more than $18,000 may be used for official 
        reception and representation expenses of the Supervisory Board 
        of the Commission;
            (2) not more than $10,000 may be used for official 
        reception and representation expenses of the Secretary of the 
        Commission; and
            (3) not more than $45,000 may be used for official 
        reception and representation expenses of the Administrator of 
        the Commission.

SEC. 3. PURCHASE OF VEHICLES.

    Notwithstanding the provisions of any other law, the funds 
available to the Commission shall be available for the purchase of, and 
transportation to, the Republic of Panama, passenger motor vehicles, 
including large, heavy-duty vehicles.

SEC. 4. GENERAL PROVISIONS.

    Expenditures authorized under this Act may be made only in 
accordance with the Panama Canal Treaties of 1977 and any law of the 
United States implementing those treaties.

SEC. 5. DEFINITIONS AND RECOMMENDATION FOR LEGISLATION.

    In section 3 of the Panama Canal Act of 1979 (22 U.S.C. 3602)--
            (1) the heading is amended to read ``Definitions'';
            (2) in subsection (b), the word ``and'' is added after the 
        semicolon at the end of paragraph (4), and paragraphs (6) and 
        (7) are deleted; and
            (3) subsection (d) is deleted.

SEC. 6. OFFICE OF OMBUDSMAN.

    In section 1113 of the Panama Canal Act of 1979 (22 U.S.C. 3623), 
subsection (d) is deleted and subsection (e) is redesignated as (d).

SEC. 7. APPOINTMENT AND COMPENSATION; DUTIES.

    Section 1202 of the Panama Canal Act of 1979 (22 U.S.C. 3642) is 
amended to read as follows:

                 ``appointment and compensation; duties

    ``Sec. 1202. (a) In accordance with this chapter, the Commission 
may appoint, fix the compensation of, and define the authority and 
duties of officers and employees 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 in 
the uniform services, may, if appointed under this section or section 
1104 of this Act, serve as officers or employees of the Commission.''.

SEC. 8. INAPPLICABILITY OF CERTAIN BENEFITS TO CERTAIN NONCITIZENS.

    In section 1209 of the Panama Canal Act of 1979 (22 U.S.C. 3649), 
subsection (a) is amended to read as follows:
    ``(a) Chapter 81 of title 5, United States Code, relating to 
compensation for work injuries, chapters 83 and 84 of such title 5, 
relating to retirement, chapter 87 of such title 5, relating to life 
insurance, and chapter 89 of such title 5, relating to health 
insurance, are applicable to Commission employees except any 
individual--
            ``(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.''.

SEC. 9. TRAVEL AND TRANSPORTATION EXPENSES.

    Section 1210 of the Panama Canal Act of 1979 (22 U.S.C. 3650) is 
amended to read as follows:

                  ``travel and transportation expenses

    ``Sec. 1210. (a) Subject to subsections (b) and (c), the Commission 
may pay travel and transportation expenses for employees in accordance 
with subchapter II of chapter 57 of title 5, United States Code.
    ``(b) For an employee to whom section 1206 applies, the Commission 
may pay travel and transportation expenses associated with vacation 
leave for the employee and his immediate family notwithstanding 
requirements regarding periods of service established by subchapter II 
of chapter 57 of title 5, United States Code or the regulations 
promulgated thereunder.
    ``(c) For an employee to whom section 1206 is inapplicable, the 
Commission may pay travel and transportation expenses associated with 
vacation leave for the employee and his immediate family 
notwithstanding requirements regarding a written agreement concerning 
the duration of a continuing service obligation established by 
subchapter II of chapter 57 of title 5, United States Code or the 
regulations promulgated thereunder.''.

SEC. 10. DEFINITIONS.

    In section 1211 of the Panama Canal Act of 1979 (22 U.S.C. 3651) 
subsection (1)(B) is amended to read as follows:
                    ``(B) any other Executive agency or the Smithsonian 
                Institution, to the extent of any election in effect 
                under section 1212(b) of this Act;''.

SEC. 11. PANAMA CANAL EMPLOYMENT SYSTEM; MERIT AND OTHER EMPLOYMENT 
              REQUIREMENTS.

    Section 1212 of the Panama Canal Act of 1979 (22 U.S.C. 3652) is 
amended to read as follows:

     ``panama canal employment system; merit and other employment 
                              requirements

    ``Sec. 1212. (a) The Commission shall establish a Panama Canal 
Employment System and prescribe the 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 chapter, and any other 
        applicable provision of law;
            ``(2) be based on the consideration of the merit of each 
        employee or candidate for employment and the qualifications and 
        fitness of the employee to hold the position concerned;
            ``(3) conform, to the extent practicable and consistent 
        with the provisions of this Act, 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, United 
        States Code, unless specifically made applicable by this Act.
    ``(b)(1) The head of any Executive agency (other than the 
Commission) and the Smithsonian Institution may elect to have the 
Panama Canal Employment System made applicable in whole or in part to 
personnel of that agency in the Republic of Panama.
    ``(2) Any Executive agency (other than the Commission) and the 
Smithsonian Institution, to the extent of any election under paragraph 
(1) of this subsection, shall conduct its employment and pay practices 
relating to employees in accordance with the Panama Canal Employment 
System.
    ``(c) The Commission may exclude any employee or position from 
coverage under any provision of this subchapter, other than the rights 
and privileges extended under section 1212(a)(4).''.

SEC. 12. EMPLOYMENT STANDARDS.

    In section 1213 of the Panama Canal Act of 1979 (22 U.S.C. 3653), 
the words ``The head of each agency'' are deleted, and the words ``The 
Commission'' are inserted at the beginning of the first sentence.

SEC. 13. INTERIM APPLICATION OF CANAL ZONE MERIT SYSTEM.

    Section 1214 of the Panama Canal Act of 1979 (22 U.S.C. 3654) is 
deleted.

SEC. 14. RECRUITMENT AND RETENTION REMUNERATION.

    In section 1217 of the Panama Canal Act of 1979 (22 U.S.C. 3657) 
subsection (d) is deleted.

SEC. 15. BENEFITS BASED ON BASIC PAY.

    In section 1218 of the Panama Canal Act of 1979 (22 U.S.C. 3658) 
subsection (2) is revised to read as follows:
            ``(2) benefits under subchapter III of chapter 83 and 
        subchapter II of chapter 84 of title 5, United States Code, 
        relating to retirement;''.

SEC. 16. ADMINISTRATION BY THE PRESIDENT.

    Section 1223 of the Panama Canal Act of 1979 (22 U.S.C. 3663) is 
amended to read as follows:

                   ``administration by the commission

    ``Sec. 1223. A Central Examining Office shall be established within 
the Commission. The purpose of the office shall be to implement the 
provisions of the Panama Canal Treaty of 1977 and related agreements 
with respect to recruitment, examination, determination of 
qualification standards, and similar matters.''.

SEC. 17. APPLICABILITY OF CERTAIN LAWS.

    Section 1224 of the Panama Canal Act of 1979 (22 U.S.C. 3664) is 
amended to read as follows:

             ``applicability of title 5, united states code

    ``Sec. 1224. In addition to those listed elsewhere in this Act, the 
following provisions of title 5, United States Code, apply to the 
Panama Canal Commission:
            ``(1) Part I of title 5 (agencies generally).
            ``(2) Chapter 21 (employee definitions).
            ``(3) Section 2302(b)(8) (whistleblower protection).
            ``(4) all preference eligibility provisions.
            ``(5) Section 5514 (offset from salary).
            ``(6) Section 5520a (garnishments).
            ``(7) Sections 5531-5535 (dual pay and employment).
            ``(8) Subchapter VI of chapter 55 (accumulated and accrued 
        leave).
            ``(9) Subchapter IX of chapter 55 (severance and back pay).
            ``(10) Chapter 57 (travel and transportation).
            ``(11) Chapter 59 (allowances).
            ``(12) Chapter 63 (leave for CONUS PCC employees).
            ``(13) Section 6323 (Military Leave; Reserves and National 
        Guardsmen).
            ``(14) Subchapters II and III of chapter 73 (striking, 
        Hatch Act).
            ``(15) Chapter 75 and 77 (adverse actions and appeals for 
        veterans).
            ``(16) Appendix 3 (Inspector General Act of 1978).''.

SEC. 18. TRANSFERRED OR REEMPLOYED EMPLOYEES.

    In section 1231 of the Panama Canal Act of 1979 (22 U.S.C. 3671), 
subsection (a)(3) is deleted.

SEC. 19. ADMINISTRATION OF SPECIAL DISABILITY BENEFITS.

    In Section 1245 of the Panama Canal Act of 1979 (22 U.S.C. 3682)--
            (1) the heading is amended to read ``administration of 
        certain disability benefits''; and
            (2) subsection (a) is amended to read as follows:
    ``(a) The Commission, or any other United States Government agency 
or private entity pursuant to an agreement with the Commission, 
pursuant to the Act entitled ``An Act authorizing cash relief for 
certain employees of the Panama Canal not coming within the provisions 
of the Canal Zone Retirement Act'', approved July 8, 1937, as amended 
(50 Stat. 478; 68 Stat. 17), may continue the payments of cash relief 
to those individual former employees of the Canal Zone Government or 
Panama Canal Company or their predecessor agencies not coming within 
the scope of the former Canal Zone Retirement Act whose services were 
terminated prior to October 5, 1958, because of unfitness for further 
useful service by reason of mental or physical disability resulting 
from age or disease. Subject to subsection (b) of this section, that 
cash relief may not exceed $1.50 per month for each year of service of 
the employees so furnished relief, with a maximum of $45 per month, 
plus the amount of any cost-of-living increases in such cash relief 
granted before October 1, 1979, pursuant to section 181 of title 2 of 
the Canal Zone Code (as in effect on September 30, 1979), nor be paid 
to any employee who, at the time of termination for disability prior to 
October 5, 1958, had less than 10 years' service with the Canal Zone 
Government, the Panama Canal Company, or their predecessor agencies on 
the Isthmus of Panama.''.

SEC. 20. APPLIANCES FOR EMPLOYEES INJURED BEFORE SEPTEMBER 7, 1916.

    Section 1246 of the Panama Canal Act of 1979 (22 U.S.C. 3683) is 
deleted.

SEC. 21. LEAVE FOR JURY OR WITNESS SERVICE.

    Section 1251 of the Panama Canal Act of 1979 is deleted.

SEC. 22. CANAL ZONE GOVERNMENT FUNDS.

    Section 1301 of the Panama Canal Act of 1979 (22 U.S.C. 3711) is 
deleted.

SEC. 23. PANAMA CANAL REVOLVING FUND.

    Section 1302 of the Panama Canal Act of 1979 (22 U.S.C. 3712) is 
amended to read as follows:

                     ``panama canal revolving fund

    ``Sec. 1302. (a) There is established in the Treasury of the United 
States a revolving fund to be known as ``Panama Canal Revolving Fund''. 
The Panama Canal Revolving Fund shall, subject to subsection (b), be 
available to the Commission to carry out the purposes, functions, and 
powers authorized by this Act, including for--
            ``(1) the hire of passenger motor vehicles and aircraft;
            ``(2) uniforms or allowances therefor;
            ``(3) official receptions and representation 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 activity, 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; and
            ``(9) the purchase and transportation to the Republic of 
        Panama of passenger motor vehicles, including large, heavy-duty 
        vehicles.
    ``(b)(1) There shall be deposited in the Panama Canal Revolving 
Fund, on a continuing basis, toll receipts (other than amounts of toll 
receipts deposited into the Panama Canal Commission Dissolution Fund 
under section 1305) and all other receipts of the Commission. Except as 
provided in section 1303, no funds may be obligated or expended by the 
Commission in any fiscal year unless such obligation or expenditure has 
been specifically authorized by law.
    ``(2) No funds may be authorized for the use of the Commission, or 
obligated or expended by the Commission in any fiscal year in excess 
of--
            ``(A) the amount of revenues deposited in the Panama Canal 
        Revolving Fund and the Panama Canal Dissolution Fund during 
        such fiscal year, plus
            ``(B) the amount of revenues deposited in the Panama Canal 
        Revolving Fund before such fiscal year and remaining 
        unobligated at the beginning of such fiscal year; plus
            ``(C) the $100,000,000 borrowing authority provided for in 
        section 1304 of this Act.
Not later than 30 days after the end of each fiscal year, the Secretary 
of the Treasury shall report to the Congress the amount of revenues 
deposited in the Panama Canal Revolving Fund during such fiscal year.
    ``(c) With the approval of the Secretary of the Treasury, the 
Commission may deposit amounts in the Panama Canal Revolving Fund in 
any Federal Reserve bank, any depository for public funds, or in such 
other places and in such manner as the Commission and the Secretary may 
agree.
    ``(d)(1) It is the sense of the Congress that the 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 Act by the Congress, less personnel retirement 
costs of $205,000,000, which were subtracted and charged to tolls, 
therefore resulting in net taxpayer cost of 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.''.

SEC. 24. EMERGENCY AUTHORITY

    In section 1303 of the Panama Canal Act of 1970 (22 U.S.C. 3713), 
the references to ``section 1302(c)(1)'' are changed to read ``section 
1302(b)(1).''

SEC. 25. PRINTING.

    A new section 1306 is added to the Panama Canal Act of 1979, 
reading as follows:

                               ``printing

    ``Sec. 1306. Notwithstanding any other provision of law, the 
Commission may purchase direct for its use printing, binding, and 
blank-book work in the Republic of Panama when the Commission 
determines that such direct purchase is in the best interest of the 
Government. This section shall not affect the Commission's authority, 
under chapter 5 of title 44, United States Code, to operate a field 
printing plant.''.

SEC. 26. AIR TRAVEL.

    In the Panama Canal Act of 1979, a new section 1307 is added, 
reading as follows:

                              ``air travel

    ``Sec. 1307. Notwithstanding any other provision of law, the 
Commission may contract with Panamanian carriers registered under the 
laws of the Republic of Panama to provide air transportation to 
officials and employees of the Commission: Provided, That such 
officials and employees may elect, for security or other reasons, to 
travel by air carriers holding certificates under section 41102 of 
title 49, United States Code.

SEC. 27. ACCOUNTING POLICIES.

    In section 1311 of the Panama Canal Act of 1979 (22 U.S.C. 3721), 
the first sentence in subsection (a) is amended to read as follows:
    ``(a) The Commission shall establish and maintain its accounts 
pursuant to chapter 91 of title 31, United States Code, and the 
provisions of this chapter.''.

SEC. 28. AUDIT.

    In section 1313 of the Panama Canal Act of 1979 (22 U.S.C. 3723), 
subsection (c) is deleted.

SEC. 29. INTERAGENCY SERVICES; REIMBURSEMENTS.

    In section 1321 of the Panama Canal Act of 1979 (22 U.S.C. 3721), 
subsection (e)(2) is revised to read as follows:
            ``(2) educational services provided by schools in the 
        Republic of Panama, or the United States which are not operated 
        by the United States, to employees of the Commission who are 
        citizens of the United States and persons who were receiving 
        such services at the expense of the Canal Zone Government 
        before the effective date of this Act. Notwithstanding section 
        5924 of title 5, United States Code, the Commission shall by 
        regulation determine the extent to which educational services 
        may be defrayed under this section.''.

SEC. 30. POSTAL SERVICE.

    Section 1331 of the Panama Canal Act of 1979 (22 U.S.C. 3741) is 
amended to read as follows:

                            ``postal service

    ``Sec. 1331. (a) The Commission shall take possession of and 
administer the funds of the Canal Zone postal service and shall assume 
its obligations.
    ``(b) Effective December 1, 1999, the Commission shall no longer be 
responsible for any accumulated unpaid balances relating to Canal Zone 
postal-savings deposits, postal-savings certificates and postal money 
orders.
            ``(c) Mail addressed to the Canal Zone from or through the 
        continental United States may be routed by the United States 
        Postal Service to the military post offices of the United 
        States 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.''.

SEC. 31. INVESTIGATION OF ACCIDENTS OR INJURY GIVING RISE TO CLAIM.

    In section 1417 of the Panama Canal Act of 1979 (22 U.S.C. 3777), 
paragraph (1) is amended to read as follows:
            ``(1) an investigation, which shall include a hearing by 
        the Commission's Board of Local Inspectors, of the accident or 
        injury giving rise to the claim has been completed; and''.

SEC. 32. INTERIM TOLL ADJUSTMENT.

    Section 1605 of the Panama Canal Act of 1979 (22 U.S.C. 3795) is 
deleted.

SEC. 33. AUTHORITY OF PRESIDENT.

    Section 1701 of the Panama Canal Act of 1979 (22 U.S.C. 3801) is 
deleted.

SEC. 34. AUTHORITY OF COMMISSION.

    Section 1702 of the Panama Canal Act of 1979 (22 U.S.C. 3802) is 
deleted.

SEC. 35. OPERATIONS REGULATIONS.

    In section 1801 of the Panama Canal Act of 1979 (22 U.S.C. 3811), 
the word ``President'' is changed to read ``Commission.''

SEC. 36. TREATY TRANSITION PERIOD.

    Title II of the Panama Canal Act of 1979, sections 2101; 2201-06; 
2301; 2401-02 (22 U.S.C. 3831); 3841-44; 3851-52) are deleted.

SEC. 37. DISINTERMENT, TRANSPORTATION, AND REINTERMENT OF REMAINS.

    Section 3101 of the Panama Canal Act of 1979 (22 U.S.C. 3861) is 
deleted.

SEC. 38. AMENDMENTS.

    Section 3302 of the Panama Canal Act of 1979 is amended to read as 
follows:

                        ``amendments; exemptions

    ``Sec. 3302. (a) The Commission is exempt from the provisions of 
subchapter II of chapter 6 of title 15, United States Code.
    ``(b) Title 5, United States Code, is amended by deleting all 
references to the `Panama Canal Commission,' to the `Panama Canal Act 
of 1979,' and to `areas and installations in the Republic of Panama 
made available to the United States pursuant to the Panama Canal Treaty 
of 1977 and related agreements' in sections 3401(1)(F)(iv), 
5102(a)(1)(vi), 5342(a)(1)(G), 5343(a)(5), 5348(b), 5373(1), 5537(c) 
and 5541(2)(xii) 7901(f) (2) and (3).
    ``(c) In section 5102(c) of title 5, United States Code, paragraph 
(12) is deleted and the succeeding paragraphs are renumbered 
accordingly.''.

SEC. 39. REPEALS AND REDESIGNATION.

    Section 3303 of the Panama Canal Act of 1979 is amended to read as 
follows:

                                ``repeal

    ``Sec. 3303. Effective on the date of enactment of this Act, the 
Panama Canal Code, is repealed.''

SEC. 40. CONTINUED APPLICABILITY.

    ``Notwithstanding any other section of this Act, subchapter II of 
chapter 2 of Title I of the Panama Canal Act of 1979, as amended, and 
as in effect on the day before the date of the enactment of this Act, 
shall continue to apply to all U.S. agencies, other than the Panama 
Canal Commission, to the extent of any election under section 1212(b) 
of Public Law 96-70.''

SEC. 41. REPEAL OF COMPENSATION PROVISION.

    Section 1204(b) of the Panama Canal Act of 1979 (22 U.S.C. 3644(b)) 
is deleted and section 1204(c) of the Panama Canal Act of 1979 (22 
U.S.C. 3644(c)) is redesignated as (b).
                                 <all>