[Congressional Record Volume 140, Number 144 (Thursday, October 6, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 6, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
  INTRODUCTION OF THE PANAMA CANAL ACT AMENDMENTS OF 1994: OCTOBER 6, 
                                  1994

                                 ______


                            HON. JACK FIELDS

                                of texas

                    in the house of representatives

                       Thursday, October 6, 1994

  Mr. FIELDS of Texas. Mr. Speaker, today I am introducing, at the 
request of the administration, the Panama Canal Amendments Act of 1994.
  The fundamental goal of this proposed bill is to improve the 
organization and management of the Panama Canal Commission.
  Mr. Speaker, during the last Congress, I proposed a measure that 
would have made a number of important improvements in the Panama Canal 
Act of 1979. These changes would have: Directed the President to select 
a civilian nongovernmental business person to serve for 7 years as 
Chairman of the Board of Directors; altered the makeup and eligibility 
requirements for those Americans serving on the Board; and changed the 
Commission's financial structure and to create a fund to cover any 
costs associated with the dissolution of the Panama Canal Commission.
  While the Dissolution Fund was incorporated within the Department of 
Defense Authorization Act of 1993--Public Law 102-484--the other 
provisions of H.R. 1558 were the subject of considerable debate. In 
fact, a leadership compromise was developed which directed the 
President to develop a plan, with the cooperation of several Federal 
agencies, to make the Canal enterprise operate more like an autonomous 
shipping entity. In addition, the General Accounting Office, was asked 
to conduct a study on how the Commission's operational structure can be 
modified to ensure an efficient transportation business in the future.
  This bill is the product of those efforts and it is my hope that 
interested parties will carefully review this proposal during the next 
few months and will provide us with their cogent comments.
  While I am not absolutely committed to the details of this bill, I 
remain convinced that it is in our Nation's best interest to have a 
viable and well functioning canal waterway in the post-2000 year 
period.
  Mr. Speaker, I urge my colleagues to review the Panama Canal Act 
Amendments of 1994 and I am hopeful that legislation, such as this, is 
seriously considered in the 104th Congress.
  Thank you, Mr. Speaker.
  A section-by-section analysis of this bill follows:

                      Section-by-Section Analysis

       Section 1. This section would provide that the bill may be 
     referred by the short title, ``Panama Canal Amendments Act of 
     1994.''
       Section 2. This section would amend section 1101 of the 
     Panama Canal Act of 1979 (hereinafter referred to as the Act) 
     in several substantive respects. First, it would establish 
     the Commission as a wholly-owned government corporation, 
     subject to 31 U.S.C. 9103(3), within the executive branch of 
     the Government of the United States and subject to the 
     standard requirements of such entities.
       The section would provide for the establishment of the 
     Commission's headquarters in Panama and authorize branch 
     offices in such other places as are deemed necessary or 
     appropriate. Finally, it would make the Commission a resident 
     of the District of Columbia and the eastern district of 
     Louisiana for purposes of venue in civil actions involving 
     the agency.
       Section 3. This section would revise section 1102 of the 
     Act dealing with the Commission's Board. It would remove the 
     current requirement that specific enumerated sectors of the 
     martitime trade be represented on the Board. Instead, it 
     allows the President much more flexibility in selecting 
     nominees for the Board based on their unique and individual 
     qualifications.
       Section 4. This provision would allow the addition of two 
     ``designated international advisors'' to the Board who are 
     selected by the United States and the Republic of Panama, but 
     who are nationals of neither country. These advisors would be 
     chosen for the individual perspectives they could bring to 
     the Commission's affairs, but would not have voting powers. 
     This provision is intended to allow the Board to broaden its 
     deliberations by the inclusion of distinguished participants, 
     in keeping with its importance as a neutral and truly 
     international resource.
       Section 5. This section would add to the Act new sections 
     1102a and 1102b which would set out, respectively, the 
     general and specific powers of the Commission as a U.S. 
     Government corporation. The listing of general powers would 
     include those relating to the adoption of a corporate seal; 
     to the promulgation of bylaws governing the conduct of 
     Commission business and the performance of its legal powers 
     and duties, to the authority to sue and be sued in its 
     corporate name (except as presently limited by the Panama 
     Canal Treaty of 1977, section 1401 of the Act and otherwise 
     by law; existing exemptions regarding garnishments of 
     employee salaries and interest on claims and judgments would 
     be included in this section); to the authority to enter into 
     contracts, leases, etc.; to the determination of the 
     character and necessity of its obligations and expenditures; 
     and to the authority to deal in real and personal property. 
     The Commission would retain its present priority of the 
     United States in the payment of debts out of bankrupt 
     estates.
       Specific powers conferred on the Commission would be made 
     subject to both the Panama Canal Treaty of 1977 and the 
     Government Corporation Control Act and would include the 
     power to manage, operate and maintain the Canal; to 
     construct, acquire, operate and maintain harbor, shop, marine 
     railway, towing, motor transportation facilities, power, 
     water and telephone systems; living quarters, guest houses, 
     storehouses, other buildings, a printing plant, 
     manufacturing, processing and service facilities and other 
     business-type activities, facilities and appurtenances 
     necessary and appropriate for the accomplishment of its 
     mission. The section would also empower the Commission to 
     make sales to vessels, employees and agencies of the U.S. and 
     other Governments, and to use the United States mails under 
     the same conditions as the executive departments of the 
     United States Government. A final provision would authorize 
     the agency to take such other actions as are necessary or 
     appropriate to carry out the foregoing specific powers.
       Section 6. This section would amend section 1302 of the Act 
     to make that provision consistent with the rechartering of 
     the Commission as a government corporation. Redesignations of 
     numbered subsections would be accomplished. Section 1302(e) 
     would be revised to incorporate the budgetary review 
     provisions of the Government Corporation Control Act.
       Section 7. This section would implement the President's 
     recommendations concerning audit of the Commission's 
     financial statements and internal controls by authorizing the 
     Commission's Board to hire independent external auditors to 
     perform the audit and reporting functions otherwise assigned 
     to the Comptroller General of the United States. This 
     auditing arrangement would be in lieu of that provided by 
     section 9105 of title 31, U.S. Code for government 
     corporations generally.
       This section would also implement the President's 
     recommendation to require that the Commission certify 
     annually that it is on course to liquidate all its 
     liabilities on December 31, 1999. Such certification would be 
     in the form of a statement of obligations and resources 
     accompanying the Commission's audited financial statements 
     for each fiscal year.
       Section 8. This section would amend section 1601 of the Act 
     by transferring from the President to the Commission the 
     authority to prescribe and change both the rules for the 
     measurement of vessels using the Panama Canal and the tolls 
     levied for use of the waterway.
       Section 9. This section would, in accordance with the 
     change made by section 8 of this bill, amend section 1604 of 
     the Act to remove references to the President from the 
     statutory procedures for effecting changes in the measurement 
     rules and tolls rates for use of the Canal.
       Section 10. This section would make appropriate technical 
     and conforming amendments to various sections in the Act.
       Section 11. This section would amend the Government 
     Corporation Control Act by adding the Panama Canal Commission 
     to the list of wholly-owned Government corporations at 31 
     U.S.C. 9101(3). While no amendments are proposed to the text 
     of the Inspector General Act of 1978, as amended, appendix 3, 
     title 5, United States Code, it is the President's 
     recommendation that, with the restructuring of the Commission 
     as a U.S. government corporation, the head of that designated 
     federal entity for purposes of the Inspector General Act 
     should be the Commission's Board of Directors. Currently, the 
     Chairman of the Board, not the Board as a whole, is 
     considered the head of the agency for this purpose. It was 
     the legislative history to the Inspector General Act 
     Amendments of 1988 (P.L. 100-504) which indicated the 
     Congressional intent with respect to this issue. H.R. Conf. 
     Rep. No. 100-1020, 100th Cong., 2d Sess. 27 (1988), reprinted 
     in 1988 U.S.C.C.A.N. 3179, 3186. In order to carry out this 
     recommendation, the Administration recommends that the 
     legislative history for this Act express the legislative 
     intent that the Board as a whole, rather than just the 
     Chairman of the Board, be considered the agency head for 
     purposes of the Inspection General Act. This is in keeping 
     with the other changes in the governance of the Commission 
     made by this Act.

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