Subtitle A--Authorization of Appropriations

SECTION 1. SHORT TITLE.

    This subtitle may be cited as the ``Panama Canal Commission 
Authorization Act for Fiscal Year 1998''.

SEC. 2. AUTHORIZATION OF EXPENDITURES.

    (a) In General.--Subject to subsection (b), the Panama Canal 
Commission is authorized to use amounts in the Panama Canal Revolving 
Fund 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 as may be necessary under the Panama Canal 
Act of 1979, as amended, (22 U.S.C. 3601 et seq.) for the operation, 
maintenance, improvement, and administration of the Panama Canal for 
fiscal year 1998.
    (b) Limitations.--For fiscal year 1998, the Panama Canal Commission 
may expend from funds in the Panama Canal Revolving Fund not more than 
$85,000 for reception and representation expenses, of which--
            (1) not more than $23,000 may be used for official 
        reception and representation expenses of the Supervisory Board 
        of the Commission;
            (2) not more than $12,000 may be used for official 
        reception and representation expenses of the Secretary of the 
        Commission; and
            (3) not more than $50,000 may be used for official 
        reception and representation expenses of the Administrator of 
        the Commission.

SEC. 3. PURCHASE OF MOTOR VEHICLES.

    Notwithstanding any other provision of law, funds available to the 
Panama Canal Commission shall be available for the purchase and 
transportation to the Isthmus of Panama of passenger motor vehicles, 
the purchase price of which shall not exceed $22,000 per vehicle.

           Subtitle B--Amendments to Panama Canal Act of 1979

SEC. 4. SHORT TITLE; REFERENCES.

    (a) Short Title.--This subtitle may be cited as the ``Panama Canal 
Act Amendments of 1979''.
    (b) Reference.--Except as otherwise expressly provided, whenever in 
this subtitle an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
Panama Canal Act of 1979, as amended (22 U.S.C. 3601 et seq.).

SEC. 5. NOTARY PUBLIC.

    Section 1102a (22 U.S.C. 3612a) is amended--
            (a) by redesignating subsection (g) as subsection (i);
            (b) by adding a new subsection (g), reading as follows:
    ``(g)(1) The Commission shall have the power to appoint United 
States citizens to have the general powers of a notary public who shall 
perform, on behalf of Commission employees and dependents, those 
notarial acts which any notary public is required or authorized to do 
within the United States.
    ``(2) Every such notarial act shall be as valid, and of like force 
and effect within the United States, for all intents and purposes, as 
if executed by or before any other person within the United States duly 
authorized and competent.
    ``(3) The signature of any such person acting as notary, together 
with the title of that person's offices, 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.''

SEC. 6. COMMERCIAL SERVICES.

    Section 1102a (22 U.S.C. 3612a) is amended by adding new subsection 
(h), reading as follows:
    ``(h) The Commission shall have authority to conduct and promote 
commercial activities related to the management, operation or 
maintenance of the Panama Canal, consistent with the Panama Canal 
Treaty of 1977 and related agreements.''

SEC. 7. POST-EMPLOYMENT RESTRICTIONS.

    Section 1112 (22 U.S.C. 3622) is amended by adding new subsection 
(e) to read as follows:
    ``(e) An officer or employee of the Commission shall be exempt from 
the restrictions of section 207 of title 18, United States Code, 
following termination of employment with the Commission at noon, 
December 31, 1999, but only for official actions as an officer or 
employee of the Panama Canal Authority.''

SEC. 8. COMPENSATION.

    (a) Repeals.--The following provisions are repealed:
            (1) Section 1215 (22 U.S.C. 3655), relating to basic pay.
            (2) Section 1219 (22 U.S.C. 3659), relating to salary 
        protection upon conversion of pay base.
            (3) Section 1225 (22 U.S.C. 3665), relating to minimum 
        level of pay and minimum annual increases.
    (b) Savings Provision.--The rate of basic pay for an officer or 
employee of the Commission after the effective date of this Act shall 
not be less than it was immediately before the effective date of this 
Act, 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.

SEC. 9. TRAVEL AND TRANSPORTATION EXPENSES.

    Section 1210 (22 U.S.C. 3650) is amended--
            (a) by repealing subsections (a), (b) and (c) and 
        redesignating subsection (d)(1) as (a) and subsection (d)(2) as 
        (b).
            (b) in subsection (a) by striking ``2'' and inserting 
        ``b''.
            (c) in subsection (b) by striking ``1'' and inserting 
        ``a''.
            (d) by revising the heading to read as follows: ``Air 
        Transportation''.

SEC. 10. RECRUITMENT AND RETENTION REMUNERATION.

    Section 1217 (22 U.S.C. 3657) is amended--
            (a) by redesignating subsection (c) as subsection (e) and 
        striking therein ``for the same or similar work performed in 
        the United States by individuals employed by the Government of 
        the United States''.
            (b) by adding new subsections (c), (d) and (f), reading as 
        follows:
    ``(c)(1) The Administrator may authorize the payment of a bonus to 
an employee who is newly recruited to a position, or to an employee who 
must relocate to accept a position, if the Administrator determines 
that the Commission would be likely, in the absence of such a bonus, to 
encounter difficulty in filling the position.
    ``(2) Payment of a recruitment or relocation bonus shall be 
contingent upon the employee's entering into an agreement with the 
Commission to complete a period of employment with the Commission 
established by the Commission. If the employee voluntarily fails to 
complete such period of service or is separated from the service as a 
result of an adverse action before completion of such period, the 
employee shall repay the bonus on a pro rata basis.
    ``(3) A recruitment or relocation bonus shall be paid as a lump sum 
and may not be considered to be part of the basic pay of an employee.
    ``(d)(1) The Administrator may authorize the payment of a retention 
bonus to an employee if the Administrator determines that--
            ``(A) the unusually high or unique qualifications of the 
        employee or a special need of the agency for the employee's 
        services makes it essential to retain the employee; and
            ``(B) the employee would be likely to leave in the absence 
        of the receipt of a retention bonus.
    ``(2) A retention bonus shall be a fixed amount, but paid on pro 
rata basis at the same time and in the same manner as basic pay but 
shall not be part of the basic pay of an employee.
    ``(e) * * *.
    ``(f) The decision to exercise or forgo the authority to make 
payments under this section shall not be subject to challenge under any 
statutory procedure or any agency or negotiated grievance procedure.''

SEC. 11. CLASSIFICATION APPEALS.

    (a) Section 1221(a) (22 U.S.C. 3661(a)) is amended in the first 
sentence by striking ``President'' and inserting ``Commission''.
    (b) Section 1222(a) (22 U.S.C. 3662(a)) is amended in the second 
sentence by striking ``President'' and inserting ``Commission''.

SEC. 12. TRAVEL, TRANSPORTATION AND SUBSISTENCE.

    Section 1224 (22 U.S.C. 3664) is amended by--
            (a) striking out clause (10); and
            (b) redesignating clauses (11)-(20) as (10)-(19).

SEC. 13. CONTINGENT SEVERANCE PAY LIABILITY.

    Section 1302(a) (22 U.S.C. 3712(a)) is amended by adding the 
following paragraph:
            ``(10) payment of severance pay to employees terminated 
        from the Panama Canal Authority for periods of service with the 
        Commission.''

SEC. 14. PRINTING.

    Section 1306 (22 U.S.C. 3716) is amended by striking ``Section 
501'' and inserting in lieu thereof ``Sections 501 through 517 and 1101 
through 1123''.

SEC. 15. INTERAGENCY SERVICES, REIMBURSEMENTS.

    Section 1321(e)(2) (22 U.S.C. 3731(e)(2)) is amended 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, to other Commission 
        employees when determined by the Administrator to be necessary 
        for their recruitment or retention, and to other persons who 
        were receiving such services at the expense of the Canal Zone 
        Government before the effective date of the Panama Canal Act of 
        1979.''

SEC. 16. TRANSACTIONS WITH THE REPUBLIC OF PANAMA.

    Section 1342 (22 U.S.C. 3752) is amended--
            (a) by redesignating the present section as subsection (a);
            (b) in subsection (a), by striking ``the Commission'' 
        whenever it appears and inserting in lieu thereof ``an 
        executive agency''; and
            (c) adding the following new subsection:
    ``(b) Notwithstanding subsection (a), the Commission may provide 
office space, equipment, supplies, personnel and other inkind services 
to the Panama Canal Authority.''

SEC. 17. FILING OF ADMIRALTY CLAIMS.

    (a) Section 1411(a) (22 U.S.C. 3771(a)) is amended by revising the 
last sentence to read as follows: ``No payment for damages on a claim 
may be made under this section unless the claim is filed with the 
Commission within 1 year after the date of the injury, or within 1 year 
after the date of the enactment of the Panama Canal Act Amendments of 
1997, whichever is later.''
    (b) Section 1412 (22 U.S.C. 3772) is amended by revising the last 
sentence to read as follows: ``No payment for damages on a claim may be 
made under this section unless the claim is filed with the Commission 
within 1 year after the date of the injury, or within 1 year after the 
date of the enactment of the Panama Canal Act Amendments of 1997, 
whichever is later.''
    (c) Section 1416 (22 U.S.C. 3776) is amended by revising the 
penultimate sentence to read as follows: ``Any action on a claim under 
this section shall be barred unless the action is brought within 180 
days after the date on which the Commission mails to the claimant 
written notification of the Commission's final determination with 
respect to the claim, or within 180 days after the date of the 
enactment of the Panama Canal Act Amendments of 1997, whichever is 
later.''

 SEC. 18. TOLLS FOR SMALL VESSELS.

    Section 1602(a) (22 U.S.C. 3792(a)) is amended--
            (a) in the first sentence, by adding ``and'' before 
        ``supply ships'', deleting the comma after ``supply ships'' and 
        deleting ``and yachts''; and
            (b) by adding at the end thereof a new sentence, reading as 
        follows: ``The tolls for yachts and other small vessels as 
        defined by the Commission may be set at fixed rates determined 
        by the Commission.''

SEC. 19. DATE OF ACTUARIAL EVALUATION OF FECA LIABILITY.

    Section 3715c(a) of title 22, United States Code, is amended by 
striking ``Upon termination of the Panama Canal Commission'' and 
inserting in lieu thereof ``By March 31, 1998''.

SEC. 20. RETIREMENT ELIGIBILITY.

    (a) Section 8336(c)(2)(B) of title 5, United States Code, is 
amended by striking ``before January 1, 2000,'' and inserting ``with 
the Panama Canal Commission,''.
    (b) Paragraph (4) of section 8336(I) is redesignated as paragraph 
(5) and amended to read as follows:
            ``(5) For the purpose of this subsection--
                    ``(A) `Panama Canal service' means--
                            ``(i) service as an employee of the Canal 
                        Zone Government, the Panama Canal Company, or 
                        the Panama Canal Commission, including service 
                        with the office established pursuant to 22 
                        U.S.C. 3714a(b) to close out the affairs of the 
                        Commission that are still pending after the 
                        termination of the Panama Canal Treaty of 1977; 
                        or
                            ``(ii) service at a permanent duty station 
                        in the Canal Zone or Republic of Panama as an 
                        employee of an Executive agency (other than the 
                        Commission) conducting operations in the Canal 
                        Zone or the Republic of Panama; and
                    ``(B) `Executive agency' includes the Smithsonian 
                Institution.''
    (c) Section 8336(I) is amended by adding the following new 
paragraph:
            ``(4) An employee of the Panama Canal Commission, assigned 
        to the office established pursuant to 22 U.S.C. 3714a(b) to 
        close out the affairs of the Commission, who is separated after 
        January 1, 2000, and who otherwise would be eligible for an 
        immediate annuity under 8336(I) (1), (2) or (3) except for date 
        of separation, is entitled to an annuity if the employee is 
        separated--
                    ``(A) involuntarily, after completing 20 years of 
                service or after becoming 48 years of age and 
                completing 18 years of service, except by adverse 
                action, or
                    ``(B) voluntarily, after completing 23 years of 
                service or after becoming 48 years of age and 
                completing 18 years of service.''

SEC. 21. LUMP SUM SEVERANCE PAY.

    Section 5595 of title 5, United States Code, is amended to read as 
follows:
    ``(j) In the case of an employee of the Panama Canal Commission who 
is entitled to severance pay under this section, on or after December 
31, 1999, the agency may pay the total amount of the severance pay due 
the employee in one lump sum.''

SEC. 22. EMPLOYMENT OF RESERVES AND RETIRED MEMBERS BY PANAMA CANAL 
              AUTHORITY.

    Section 908 of title 37, United States Code, is amended by adding 
the following new subsection:
    ``(c) Notwithstanding subsection (b), a person described in 
subsection (a) may accept employment or compensation described in that 
subsection with the entity of the Government of the Republic of Panama 
known as the Panama Canal Authority, which is the successor to the 
Panama Canal Commission.''

SEC. 23. CONFORMING AND CLERICAL AMENDMENTS.

    (a) Section 1216 (22 U.S.C. 3656) is amended by striking ``1215'' 
and inserting in lieu thereof ``1202''.
    (b) Section 1218 (22 U.S.C. 3658) is amended by striking ``1215'' 
and inserting in lieu thereof ``1202'' and by revising ``1217'' to read 
``1217(a)''.
    (c) Section 5315 of title 5, United States Code, is amended by 
striking ``Administrator, Panama Canal Commission''.
    (d)(1) Section 5724(a)(3) of title 5, United States Code, is 
amended by striking ``, the Commonwealth of Puerto Rico, or 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, as described in section 3(a) of the Panama Canal Act of 
1979'' and inserting in lieu thereof ``or the Commonwealth of Puerto 
Rico''.
    (2) Section 5724a of title 5, United States Code, is amended by 
striking ``, the Commonwealth of Puerto Rico, or 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, (as described in section 3(a) of the Panama Canal Act of 
1979)'' and inserting in lieu thereof ``or the Commonwealth of Puerto 
Rico'' every time it appears.
    (e) Table of Contents.--The table of contents in section 1 is 
amended as follows:
            (1) The item relating to section 1210 is amended to read as 
        follows:

``Sec. 1210. Air Transportation.''.
            (2) Such table of contents is further amended by inserting 
        after the item relating to section 1232 the following new item:

``Sec. 1233. Transition Separation Incentive Payment.''.
            (3) Such table of contents is further amended by striking 
        out the items relating to sections 1215, 1219, and 1225.
TABLE OF CONTENTS: 
     Subtitle A:  Authorization of Appropriations 
     Subtitle B:  Amendments to Panama Canal Act of 1979 
Subtitle A:  Authorization of Appropriations
 - Panama Canal Commission Authorization Act for Fiscal Year 1998 - Authorizes the Panama Canal Commission to make expenditures as necessary for the operation, maintenance, improvement, and administration of the Panama Canal for FY 1998.  Makes funds available for the purchase, and transportation to Panama, of passenger motor vehicles (limiting the per vehicle purchase price to $22,000). 
Subtitle B:  Amendments to Panama Canal Act of 1979
 - Panama Canal Act Amendments of 1979 (sic) - Amends the Panama Canal Act of 1979 to:  (1) empower the Commission to appoint U.S. citizens as notaries public, and to conduct and promote commercial activities related to the management, operation, or maintenance of the Canal; (2) exempt Commission officers and employees from Federal post-employment restrictions following termination of their employment on December 31, 1999; (3) repeal certain Commission employee pay, travel and transportation provisions; (4) authorize the Administrator of the Commission to pay a bonus to a newly recruited employee or an employee who must relocate to accept a position (requires the employee to contract to complete a period of employment established by the Commission) and to pay a retention bonus to other employees under specified circumstances; (5) authorize the Commission (currently, the President) to regulate the Panama Canal Board of Appeals; (6) authorize use of the Panama Canal Revolving Fund to pay severance pay to Commission employees; (7) direct an executive agency (currently, the Commission) to enter into supplies and materials contracts and other transactions with the Republic of Panama; (8) provide a time limitation with respect to the filing of admiralty claims with the Commission; (9) authorize the Commission to establish toll rates for yachts using the Canal; (10) revise generally Federal provisions concerning retirement eligibility for Commission employees; and (11) authorize reserve and retired military personnel to accept employment with the Panama Canal Authority (the successor to the Commission).
Panama Canal Commission Authorization Act for Fiscal Year 1998