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22 U.S.C. § 3741 — Postal service
Federal law — U.S. Code and appendices · legal_authorities
Page 1403
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 3741
sons eligible to receive them, less amounts pay-
able by such persons, shall be fully reimbursable
to the department or agency furnishing the
services, except to the extent that such expendi-
tures are the responsibility of that department
or agency. The funds of the Commission shall be
available for such reimbursements on behalf of—
(1) employees of the Commission, and
(2) other persons authorized to receive such
services who are eligible to receive them pur-
suant to the Panama Canal Treaty of 1977 and
related agreements.
The appropriations or funds of any other depart-
ment or agency of the United States conducting
operations in the Republic of Panama, including
the Smithsonian Institution, shall be available
for reimbursements on behalf of employees of
such department or agency and their depend-
ents.
(e) Repealed. Pub. L. 105–261, div. C, title XXXV,
§ 3507(a), Oct. 17, 1998, 112 Stat. 2269
(f) Reimbursement of United States by Republic
of Panama for salaries and other employ-
ment costs
For purposes of the reimbursement of the
United States by the Republic of Panama for the
salaries and other employment costs of employ-
ees of the Commission who are assigned to assist
the Republic of Panama in the operation of ac-
tivities which are transferred to that Govern-
ment as a result of any provision of the Panama
Canal Treaty of 1977 and related agreements,
which reimbursement is provided for in para-
graph 8 of Article 10 of that Treaty, the Commis-
sion shall be deemed to be the United States of
America.
(g) Operation of Canal Zone College
Notwithstanding any other provision of law,
the President, through the appropriate depart-
ment or agency of the United States, shall, until
Januar
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Page 1403
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 3741
sons eligible to receive them, less amounts pay-
able by such persons, shall be fully reimbursable
to the department or agency furnishing the
services, except to the extent that such expendi-
tures are the responsibility of that department
or agency. The funds of the Commission shall be
available for such reimbursements on behalf of—
(1) employees of the Commission, and
(2) other persons authorized to receive such
services who are eligible to receive them pur-
suant to the Panama Canal Treaty of 1977 and
related agreements.
The appropriations or funds of any other depart-
ment or agency of the United States conducting
operations in the Republic of Panama, including
the Smithsonian Institution, shall be available
for reimbursements on behalf of employees of
such department or agency and their depend-
ents.
(e) Repealed. Pub. L. 105–261, div. C, title XXXV,
§ 3507(a), Oct. 17, 1998, 112 Stat. 2269
(f) Reimbursement of United States by Republic
of Panama for salaries and other employ-
ment costs
For purposes of the reimbursement of the
United States by the Republic of Panama for the
salaries and other employment costs of employ-
ees of the Commission who are assigned to assist
the Republic of Panama in the operation of ac-
tivities which are transferred to that Govern-
ment as a result of any provision of the Panama
Canal Treaty of 1977 and related agreements,
which reimbursement is provided for in para-
graph 8 of Article 10 of that Treaty, the Commis-
sion shall be deemed to be the United States of
America.
(g) Operation of Canal Zone College
Notwithstanding any other provision of law,
the President, through the appropriate depart-
ment or agency of the United States, shall, until
January 1, 2000, operate the educational institu-
tion known as the ‘‘Canal Zone College’’. Such
institution shall continue to provide, insofar as
practicable, the level of services which it offered
immediately before October 1, 1979.
(h) Prohibition of funds for uses other than Com-
mission activities
Except as expressly provided in this chapter,
funds available to the Panama Canal Commis-
sion may not be made available to any other
agency as that term is defined in section 551 of
title 5, nor may funds be authorized or appro-
priated for any function other than Panama
Canal Commission activities.
(Pub. L. 96–70, title I, § 1321, Sept. 27, 1979, 93
Stat. 480; Pub. L. 99–223, § 5(c), Dec. 28, 1985, 99
Stat. 1739; Pub. L. 100–705, § 8, Nov. 19, 1988, 102
Stat. 4686; Pub. L. 102–484, div. C, title XXXV,
§ 3512, Oct. 23, 1992, 106 Stat. 2655; Pub. L. 103–337,
div. C, title XXXVI, § 3604, Oct. 5, 1994, 108 Stat.
3112; Pub. L. 104–106, div. C, title XXXV, § 3529(3),
Feb. 10, 1996, 110 Stat. 642; Pub. L. 104–201, div. C,
title XXXV, § 3542, Sept. 23, 1996, 110 Stat. 2867;
Pub. L. 105–85, div. C, title XXXV, §§ 3525(b),
3550(d)(2)(A), (B), Nov. 18, 1997, 111 Stat. 2066,
2074; Pub. L. 105–261, div. C, title XXXV, § 3507(a),
Oct. 17, 1998, 112 Stat. 2269.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (h), was in the
original ‘‘this Act’’, meaning Pub. L. 96–70, Sept. 27,
1979, 93 Stat. 452, known as the Panama Canal Act of
1979, which is classified principally to this chapter. For
complete classification of this Act to the Code, see
Short Title note set out under section 3601 of this title
and Tables.
AMENDMENTS
1998—Subsec. (e). Pub. L. 105–261 struck out subsec.
(e) which provided that appropriations or funds of the
Commission or of any other department or agency of
the United States conducting operations in the Repub-
lic of Panama were available to defray the cost of cer-
tain health care services and educational services.
1997—Subsec. (c)(1). Pub. L. 105–85, § 3550(d)(2)(A), sub-
stituted ‘‘October 1, 1979’’ for ‘‘the effective date of this
Act’’.
Subsec. (c)(2). Pub. L. 105–85, § 3550(d)(2)(B), sub-
stituted ‘‘October 1, 1979’’ for ‘‘such effective date’’.
Subsec. (e)(2). Pub. L. 105–85, § 3525(b), substituted
‘‘, to other Commission employees when determined by
the Commission to be necessary for their recruitment
or retention, and to other persons’’ for ‘‘and persons’’.
1996—Subsec. (d). Pub. L. 104–106 struck out ‘‘appro-
priations or’’ before ‘‘funds of the Commission’’ in in-
troductory provisions.
Subsec. (e). Pub. L. 104–201 inserted concluding provi-
sions ‘‘Notwithstanding the provisions relating to the
availability of adequate schools contained in section
5924(4)(A) of title 5, the Commission shall by regulation
determine the extent to which costs of educational
services may be defrayed under this subsection.’’
1994—Subsec. (e)(2). Pub. L. 103–337 inserted ‘‘or the
United States’’ after ‘‘schools in the Republic of Pan-
ama’’.
1992—Subsec. (e)(1). Pub. L. 102–484 inserted ‘‘provided
by medical facilities licensed and approved by the Re-
public of Panama (and not operated by the United
States)’’ after ‘‘health care services’’.
1988—Subsec. (h). Pub. L. 100–705 added subsec. (h).
1985—Subsec. (e). Pub. L. 99–223 amended subsec. (e)
generally, striking out ‘‘, in accordance with sub-
section (d) of this section,’’ after ‘‘shall be available’’
in provisions preceding par. (1) and inserting ‘‘employ-
ees of the Commission who are citizens of the United
States and’’ in par. (2).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1998 AMENDMENT
Pub. L. 105–261, div. C, title XXXV, § 3507(a), Oct. 17,
1998, 112 Stat. 2269, provided that the amendment made
by section 3507(a) striking out subsec. (e) of this section
is effective 11:59 p.m. (Eastern Standard Time), Dec. 30,
1999, and any right or condition of employment pro-
vided for in, or arising from, subsec. (e) of this section
is terminated.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100–705 effective Oct. 1, 1988,
see section 10 of Pub. L. 100–705, set out as a note under
section 3612 of this title.
EFFECTIVE DATE OF 1985 AMENDMENT
Amendment by Pub. L. 99–223 effective Oct. 1, 1985,
see section 8 of Pub. L. 99–223, set out as a note under
section 3612 of this title.
SUBPART IV—POSTAL MATTERS
§ 3741. Postal service
(a) Possession or administration of funds by
Commission
The Commission shall take possession of and
administer the funds of the Canal Zone postal
service and shall assume its obligations.
Page 1404
TITLE 22—FOREIGN RELATIONS AND INTERCOURSE
§ 3751
(b) Expiration of responsibility for unpaid bal-
ances
Effective December 1, 1999, neither the Com-
mission nor the United States Government shall
be responsible for the distribution of any accu-
mulated unpaid balances relating to Canal Zone
postal-savings deposits, postal-savings certifi-
cates, and postal money orders.
(c) Mail addressed to Canal Zone from or
through United States
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
Armed 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 Com-
mission shall furnish personnel, records, and
other services to such military post offices to
assure wherever appropriate the distribution, re-
routing, or return of such mail.
(Pub. L. 96–70, title I, § 1331, Sept. 27, 1979, 93
Stat. 481, 482; Pub. L. 104–201, div. C, title XXXV,
§ 3543, Sept. 23, 1996, 110 Stat. 2867.)
Editorial Notes
AMENDMENTS
1996—Pub. L. 104–201 reenacted section catchline
without change and amended text generally. Prior to
amendment, text was comprised of subsecs. (a) to (d) of
section 1331 of Pub. L. 96–70 which provided for dis-
continuation of postal service under former Canal Zone
Code, savings provision, possession and administration
of postal funds by Commission, and handling of mail
addressed to the Canal Zone. Prior to amendment, sec-
tion 1331 also contained a subsec. (e) which amended
sections 403, 3401, 3402, and 3682 of Title 39, Postal Serv-
ice.
SUBPART V—ACCOUNTS WITH REPUBLIC OF
PANAMA
§ 3751. Payments to Republic of Panama
(a) Payments required under Panama Canal
Treaty; annual audit
The Commission shall pay to the Republic of
Panama those payments required under para-
graph 5 of Article III and paragraph 4 of Article
XIII of the Panama Canal Treaty of 1977. Pay-
ments made under paragraph 5 of Article III of
such Treaty shall be audited annually by the
Comptroller General and any overpayment, as
determined in accordance with Understanding
(1) incorporated in the Resolution of Ratifica-
tion of the Panama Canal Treaty (adopted by
the United States Senate on April 18, 1978), for
the services described in that paragraph which
are provided shall be refunded by the Republic of
Panama or set off against amounts payable by
the United States to the Republic of Panama
under paragraph 5 of Article III of the Panama
Canal Treaty of 1977.
(b) Excess operating revenues
In determining whether operating revenues ex-
ceed expenditures for the purpose of payments
to the Republic of Panama under paragraph 4(c)
of Article XIII of the Panama Canal Treaty of
1977, such operating revenues in a fiscal period
shall be reduced by (1) all costs of such period as
shown by the accounts established pursuant to
section 3721 of this title, and (2) the cumulative
sum from prior years (beginning with the year
in which the Panama Canal Treaty of 1977 enters
into force) of any excess of costs of the Panama
Canal Commission over operating revenues.
(c) Retroactive taxation
The President shall not accede to any inter-
pretation of paragraph 1 of Article IX of the
Panama Canal Treaty of 1977 which would per-
mit the Republic of Panama to tax retroactively
organizations and businesses operating, and citi-
zens of the United States living, in the Canal
Zone before October 1, 1979.
(d) Accumulated unpaid balances
Any accumulated unpaid balance under para-
graph 4(c) of Article XIII of the Panama Canal
Treaty of 1977 at the termination of such Treaty
shall be payable only to the extent of any oper-
ating surplus in the last year of the Treaty’s du-
ration, and nothing in such paragraph may be
construed as obligating the United States to pay
after the date of the termination of the Treaty
any such unpaid balance which has accrued be-
fore such date.
(e) Toll rates; payment of costs of operation and
maintenance
of
canal
with
unexpended
funds
As provided in section 3792(b) of this title,
tolls shall not be prescribed at rates calculated
to cover payments to the Republic of Panama
pursuant to paragraph 4(c) of Article XIII of the
Panama Canal Treaty of 1977. Moreover, no pay-
ments may be made to the Republic of Panama
under paragraph 4(c) of Article XIII of the Pan-
ama Canal Treaty of 1977 unless unexpended
funds are used to pay all costs of operation and
maintenance of the canal, including but not lim-
ited to (1) operating expenses determined in ac-
cordance with generally accepted accounting
principles, (2) payments to the Republic of Pan-
ama under paragraphs 4(a) and 4(b) of such Arti-
cle XIII and under paragraph (5) of Article III of
such Treaty, (3) amounts in excess of deprecia-
tion and amortization which are programed for
plant replacement, expansion, and improve-
ments, (4) payments to the Treasury of the
United States under section 3793 of this title, (5)
reimbursement to the Treasury of the United
States for costs incurred by other departments
and agencies of the United States in providing
educational, health, and other services to the
Commission, its employees and their depend-
ents, and other categories of persons in accord-
ance with section 3731 of this title, (6) any costs
of Treaty implementation associated with the
maintenance and operation of the Panama
Canal, and (7) amounts programmed to meet
working capital requirements.
(f) Prohibitions
The prohibitions contained in this section and
in sections 3712(b) and 3783 of this title shall
apply notwithstanding any other provision of
law authorizing transfers of funds between ac-
counts, reprograming of funds, use of funds for
contingency purposes, or waivers of prohibi-
tions.
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Federal law — U.S. Code and appendices · legal_authorities
**(a) Financial transactions of Commission; access to books, accounts, etc.** Notwithstanding any other provision of law, and subject to subsection (c), financial transactions of the Commission shall be audited by the Comptroller General of the United States (hereinafter in this chapter referred to as the “Comptroller General”). In conducting any such audit, the appropriate representatives of the Comptroller General shall have access to all books, accounts, financial records, reports, files, and other papers, items, or property in use by the Commission and necessary to facilitate such audit, and such representatives shall be afforded full facilities for verifying transactions with the balances or securities held by depositories, fiscal agents, and custodians. Any such audit shall first be conducted with respect to the fiscal year in which this chapter becomes effective. An audit performed under this section is subject to the requirements of paragraphs (2), (3), and (5) of [section 9105(a) of title 31](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section9105/a&num=0&edition=prelim).
**(b) Omitted**
**(c) Independent auditors** At the discretion of the Board provided for in [section 3612 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title22-section3612&num=0&edition=prelim), the Commission may hire independent auditors to perform, in lieu of the Comptroller General, the audit and reporting functions prescribed in subsections (a) and (b).
**(d) Examination and report on Commission’s financial forecast** In addition to auditing the financial statements of the Commission, the Comptroller General (or the independent auditor if one is employed pursuant to subsection (c)) shall, in accordance with standards for an examina
Source: Supplied U.S. Code snapshot — release unconfirmed · 22 U.S.C. § 3741
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