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Sec. 1312. Reports

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Sec. 1313. Audit by the Comptroller General of the United States

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Sec. 1344. Congressional restraints on property transfers and expenditures

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CHAPTER 4-CLAIMS FOR INJURIES TO PERSONS OR PROPERTY

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Sec. 1413. Measures of damages generally

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Sec. 1414. Delays for which no responsibility is assumed

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Sec. 1415. Settlement of claims

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Sec. 1416. Actions on claims

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Sec. 1417. Investigation of accident or injury giving rise to claim
Sec. 1418. Board of Local Inspectors

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Sec. 1419. Insurance

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CHAPTER 5-PUBLIC PROPERTY

Sec. 1501. Assets and liabilities of Panama Canal Company
Sec. 1502. Transfers and cross-servicing between agencies
Sec. 1503. Disposition of property of the United States
Sec. 1504. Transfer of property to Panama

CHAPTER 6-TOLLS FOR USE OF THE PANAMA CANAL

Sec. 1601. Prescription of measurement rules and rates of tolls
Sec. 1602. Bases of tolls

Sec. 1603. Calculation of interest

Sec. 1604. Procedures....

Sec. 1605. Interim toll adjustment

CHAPTER 7-GENERAL REGULATIONS

Sec. 1701. Authority of President
Sec. 1702. Authority of Commission

CHAPTER 8 SHIPPING AND NAVIGATION
Subchapter I-Operation of Canal

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Sec. 1801. Operating regulations

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Subchapter II-Inspection of Vessels

Sec. 1811. Vessels subject to inspection

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Sec. 1812. Foreign vessels
Sec. 1813. Regulations governing inspection

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TITLE II-TREATY TRANSITION PERIOD
CHAPTER 1-LAWS CONTINUED IN FORCE

Sec. 2101. Laws, regulations, and administrative authority

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Sec. 3101. Disinterment, transportation, and reinterment of remains

CHAPTER 2-IMMIGRATION

Sec. 3201. Special immigrants

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CHAPTER 3-REPORTS; Amendments; Repeals and ReDESIGNATION; EFFECTIVE

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SEC. 2.2 It is the purpose of this Act to provide legislation necessary or desirable for the implementation of the Panama Canal Treaty of 1977 between the United States of America and the Republic of Panama and of the related agreements accompanying that Treaty.

DEFINITIONS AND RECOMMENDATION FOR LEGISLATION

SEC. 3.3 (a) For purposes of this Act

(1) references to the Panama Canal Treaty of 1977 refer to the Panama Canal Treaty between the United States of America and the Republic of Panama, signed September 7, 1977; and

(2) references to the Panama Canal Treaty of 1977 and related agreements refer to the Panama Canal Treaty of 1977, the agreements relating to and implementing that Treaty, signed September 7, 1977; and the Agreement Between the United States of America and the Republic of Panama Concerning Air

222 U.S.C. 3601.

322 U.S.C. 3602.

Traffic Control and Related Services, concluded January 8, 1979.

(b) Subject to the provisions of subsection (c) of this section, for purposes of applying the Canal Zone Code or other laws of the United States and regulations issued pursuant to such Code or other laws with respect to transactions, occurrences, or status on or after the effective date of this Act

(1) "Canal Zone" shall be deemed to refer to the 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;

(2) "Canal Zone waters" and "waters of the Canal Zone" shall be deemed to refer to "Panama Canal waters" and "waters of the Panama Canal", respectively;

(3) "Government of the Canal Zone" or "Canal Zone Government" shall be deemed to refer to the United States of America;

(4) "Governor of the Canal Zone" or "Governor", wherever the reference is to the Governor of the Canal Zone, shall be deemed to refer to the Panama Canal Commission;

(5) "Panama Canal Company" or "Company", wherever the reference is to the Panama Canal Company, shall be deemed to refer to the Panama Canal Commission;

(6) in chapter 57 of title 5 of the Canal Zone, "hospitals" and "health Bureau" shall be deemed to refer, respectively, to the hospitals operated by the United States in the Republic of Panama, and to the organizational unit operating such hospitals; and

(7) in chapter 57 of title 5 of the Canal Zone Code, in section 4784 of title 6 of such Code, and in section 2 of title 7 of such Code, "health director" shall be deemed to refer to the senior official in charge of the hospitals operated by the United States in the Republic of Panama.

(c) Any reference set forth in subsection (b) of this section shall apply except as otherwise provided in this Act or unless (1) such reference is inconsistent with the provisions of this Act, (2) in the context in which a term is used such reference is clearly not intended, or (3) a term refers to a time before the effective date of this Act.

(d) The President shall, within two years after the Panama Canal Treaty of 1977 enters into force, submit to the Congress a request for legislation which would

(1) amend or repeal provisions of law which in their present form are applicable only during the transition period prescribed in Article XI of that Treaty.

(2) repeal the Canal Zone Code, and

(3) contain provisions considered necessary and appropriate in light of the experience as of that time under that Treaty.

TITLE I-ADMINISTRATION AND REGULATIONS

CHAPTER 1-PANAMA CANAL COMMISSION

ESTABLISHMENT OF COMMISSION

SEC. 1101.4 There is established in the executive branch of the United States Government an agency to be known as the Panama Canal Commission (hereinafter in this Act referred to as the "Commission"). The Commission shall, under the general supervision of the Board established by section 1102 of this Act, be responsible for the maintenance and operation of the Panama Canal and the facilities and appurtenances related thereto. The authority of the President with respect to the Commission shall be exercised through the Secretary of Defense.

SUPERVISORY BOARD

SEC. 1102.5 (a) The Commission shall be supervised by a Board composed of nine members, one of whom shall be the Secretary of Defense or an officer of the Department of Defense designated by the Secretary. Not less than five members of the Board shall be nationals of the United States and the remaining members shall be nationals of the Republic of Panama. At least one of the members of the Board who are nationals of the United States shall be experienced and knowledgeable in the management or operation of an American-flag steamship line which has or had ships regularly transiting the Panama Canal, at least one other such member shall be experienced and knowledgeable in United States port operations or in the business of exporting or importing one of the regular commodities dependent on the Panama Canal as a transportation route, and at least one other such member shall be experienced and knowledgeable in labor matters in the United States. Three members of the Board shall hold no other office in or be employed by the Government of the United States. Members of the Board who are nationals of the United States shall cast their votes as directed by the Secretary of Defense or his designee.

(b) 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

422 U.S.C. 3611. Secs. 3522 and 3523 of the National Defense Authorization Act for Fiscal Year 1993 (Title XXXV-Panama Canal Commission Authorization Act for Fiscal Year 1993; Public Law 102-484; 106 Stat. 2655 et seq.) required two reports relating to the Panama Canal. The first required the President to file a study with Congress discussing "recommendations for such changes, if any, to the Panama Canal Commission for the operation of the Panama Canal during the period before the termination of the Panama Canal Treaty of 1977 as the President determines would facilitate and encourage the operation of the canal through an autonomous entity under the Government of Panama after the transfer of the canal on December 31, 1999, pursuant to the Panama Canal Treaty of 1977 and related agreements.".

The second report required the Comptroller General to submit a report to Congress "analyzing the effectiveness of the fiscal, operational, and management structure of the Panama Canal Commission and setting forth recommendations for such changes to that structure as the Comptroller General determines would, if implemented, enable the Commission to operate more efficiently and, thereby, serve as a model for the Government of Panama for the operation of the Panama Canal after the transfer of the Panama Canal on December 31, 1999, pursuant to the Panama Canal Treaty of 1977 and related agreements.".

522 U.S.C. 3612.

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 section 1107 of this Act, except that, in addition to such travel or transportation expenses, members of the Board who hold no other office with either the Government of the United States or the Republic of Panama for which they receive pay are authorized to be compensated at the daily equivalent of the annual rate of basic pay in effect for level V of the Executive Schedule under section 53166 of title 5, United States Code, for each day during which they are traveling to or from or attending meetings of the Board as provided in subsection (c) of this section or, as authorized by the Chairman of the Board, while on official Panama Canal Commission business.8

(c) 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.9 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. 10

ADMINISTRATOR

SEC. 1103.11 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.

DEPUTY ADMINISTRATOR AND CHIEF ENGINEER

SEC. 1104.12 (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

Sec. 3504 of Public Law 101-510 (104 Stat. 1846) struck out "grade GS-18 of the General Schedule under section 5332" and inserted in lieu thereof "level V of the Executive Schedule under section 5316".

The rate of pay for level V of the Executive Schedule was set at $108,200 per annum by Schedule 5 of Executive Order 12826 (57 F.R. 62909; December 30, 1992).

7 Sec. 6 of the Panama Canal Commission Authorization Act, Fiscal Year 1986 (Public Law 99-223; 99 Stat. 1740) added text to this point beginning with ", except that ***". See pre vious note.

The words beginning "or, as authorized" and ending at this point were added by sec. 5416 of title V of the Omnibus Budget Reconciliation Act of 1987 (Public Law 100-203; 101 Stat 1330-270).

Sec. 7 of Public Law 100-705 (102 Stat. 4686) struck out at this point the sentence: "Only one proxy may be valid at any one time.".

10 Public Law 98-217 (98 Stat. 9) added sentences three, four, and five of subsec. (c).

11 22 U.S.C. 3613.

12 22 U.S.C. 3614.

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