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H.R. 111 (96th)

An act to provide for the operation and maintenance of the Panama Canal under the Panama Canal Treaty of 1977, and for other purposes.

openUnited States· United States Congress· EN

Introduced

15 January 1979

Last action

Status

Public Law 96-70.

Sponsors

Subjects

Discovery layer

Source updated

14 January 2025

Summary

Panama Canal Act of 1979 - Title I: Administration and Regulations - Chapter I: Panama Canal Commission - Establishes the Panama Canal Commission to operate and maintain the Panama Canal, subject only to the direction of the Secretary of Defense. Requires the President to appoint an Administrator, a Deputy Administrator, and a Chief Engineer with the advice and consent of the Senate. Establishes a Panama Canal Consultative Committee to advise the United States and Panama on policy affecting the Canal. Requires such Committee to submit written proposals for action to the President, subject to Congressional disapproval, 60 days prior to taking any action. Authorizes the President to establish a Joint Commission on the Environment with Panama to review periodically the environmental impact of the Panama Canal Treaty of 1977. Provides for a military officer to assume jurisdiction over the Canal if the United States is at war or war is imminent. Directs the United States Ambassador to Panama to coordinate the transfer of functions to be assumed by Panama pursuant to the Panama Canal Treaty of 1977. Chapter 3: Employees - Authorizes the Panama Canal Commission to appoint, fix the compensation of, and define the duties of officers and employees necessary for the management, operation, and maintenance of the Canal. Permits officers and employees of other Federal departments or agencies to serve as employees or officers of the Commission. Sets forth provisions relating to transfers of Federal employees, compensation of certain military individuals, cost-of-living allowances, educational travel benefits, privileges and immunities, and inapplicability of certain benefits to certain noncitizens. Directs the Commission to conduct its wage and employment practices in accordance with Treaty principles and the Panama Canal Employment System. Requires department heads to establish written employment standards and rates of basic compensation. Requires uniform application of standards and rates regardless of whether the employee is a citizen of the United States or Panama. Makes provisions for recruitment and retention remuneration and benefits. Directs the President to establish the Panama Canal Employment System to be a merit based and competitive service. Stipulates the procedure for review and appeals of classifications, grades, and pay levels. Provides for terms and conditions of employment for employees transferred to the Commission similar to those available prior to transfer. Exempts teachers formerly employed by the Canal Zone Government, who were transferred, from the Defense Department Overseas Teachers Pay and Personnel Practices Act. Makes provisions for United States citizens to be placed in vacant Federal jobs in the United States. Sets forth retirement provisions. Makes the United States Attorney an employee of the Commission. Exempts Federal employees in the Canal Zone from the labor-management provision applicable to Federal employees. Requires the Secretary of Defense to prescribe similar regulations. Chapter 5: Funds and Accounts - Terminates the Treasury accounts for the Canal Zone Government and the Panama Canal Company. Authorizes appropriations to the Commission as necessary. Authorizes the Secretary of Treasury to establish a Panama Canal Emergency Fund. Requires the Commission to establish and maintain its accounts pursuant to the Accounting and Auditing Act of 1950. Directs the Commission to report annually to the President and Congress. Makes provisions for the Commission to reimburse other Federal agencies for retirement and benefit payments. Requires the Department of Defense to reimburse the Commission for maintaining defense facilities in standby condition. Authorizes Defense appropriations to be made available for educational and health care activities. Permits the Commission to aid military post offices in the proper distribution of mail. Terminates the Canal Zone postal service. Provides for the redemption and payment of securities, postal savings certificates, and other accounts. Permits the Commission and the U.S. Postal Service to enter into agreements to meet obligations only to the extent such amounts are provided for in appropriation Acts. Permits the Commission and the U.S. Postal Service to enter into agreements to meet Panama at rates agreed to by the Commission and Panama. Authorizes the Commission to provide disaster relief to Panama. Chapter 7: Claims for Injuries to Persons or Property - Authorizes the Commission to pay claims up to $60,000 arising from the operation of the Canal or related facilities, including for injuries to vessels, cargo, crew, or passengers passing through the Canal. Sets forth the measure of damages for injuries to a vessel. Permits aggrieved persons to appeal a claims determination by the Commission to the U.S. District Court for Eastern Louisiana. Directs the President to establish a Board of Local Inspectors to investigate any accidents or injuries giving rise to a claim. Chapter 9: Public Property - Provides for the reversion of the Panama Canal Company's property, assets, and liabilities to the United States. Authorizes the Commission to use such property as necessary. Prohibits disposing of U.S. property in Panama without congressional authorization. Authorizes the transfer of property, including the Panama Railroad, to Panama pursuant to the Treaty. Chapter 10: Tolls for Use of Canal - Authorizes the President to prescribe rules for the measurement of vessels and tolls to be levied for the use of the Canal. Sets forth certain bases and procedures for setting or adjusting tolls. Chapter 11: General Regulations - Authorizes the President and the Commission to make regulations concerning their respective areas of responsibility. Chapter 13: Shipping and Navigation - Authorizes the President to regulate the operation and navigation of the Canal. Provides for inspections of vessels. Title II: Treaty Transition Period - Chapter 1: Laws Continued in Force - Continues those laws in force during the transition period that are not inconsistent with the Treaty. Chapter 2: Courts - Continues the jurisdiction of the U.S. District Court for the Canal Zone in accordance with Treaty provisions. Provides for the extension of terms of certain offices as agreed by the United States and Panama. Repeals the requirements that certain court officials reside in the Canal Zone. Amends the Canal Zone Code to authorize the chief judge of the U.S. judicial circuit in which the district court lies to designate a special district judge to act when necessary pursuant to the U.S. Code provisions relating to the assignment of judges. Continues the magistrates' courts for 30 months, unless terminated earlier by the President. Provides for the U.S. District Court for the Canal Zone to assume the jurisdiction of the magistrates' courts upon termination. Chapter 3: Attorneys - Amends the Canal Zone Code to authorize the district judge to prescribe an appropriate oath for attorneys admitted to practice in the Canal Zone. Chapter 4: Transition Authority - Authorizes the President to exercise any transition authority not contrary to other laws, agreements, or the Treaty. Title III: General Provisions - Chapter 1: Cemeteries - Authorizes the President to enter into an agreement with Panama providing for the administration of the Corozal Cemetery by the American Battle Monuments Commission. Permits the President to make provisions for: (1) the transfer of remains of U.S. citizens from Mount Hope Cemetery to Corozal Cemetery; and (2) the transportation of remains to the United States, if requested by the next of kin. Chapter 2: Immigration - Amends the Immigration and Nationality Act to include immigrants who have been employees of the Panama Canal Company or Canal Zone Government within the category of special immigrants. Waives specified conditions of inadmissibility to the United States for such immigrants. Chapter 3: Amendments; Repeals; Effective Dates - Makes certain technical and conforming amendments. Repeals certain Canal Zone Code provisions relating to: (1) administration and regulation; (2) divisions and terms of the district court; and (3) extradition of fugitives from Panama. Repeals: (1) the applicability of the Arms Export Control Act to the Canal Zone; and (2) the authority of the Canal Zone governor to regulate anchorage and movement of vessels in a national emergency. Makes this Act effective on the date the Treaty enters into force unless otherwise provided.

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Public Law (PDF)

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