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Title 22 — Foreign Relations and Intercourse

Part 3 · Chapter 51 — Panama Canal

§ 3751. Payments to Republic of Panama

Statutory text

(a)

Payments required under Panama Canal Treaty; annual audit

The Commission shall pay to the Republic of Panama those payments required under paragraph 5 of Article III and paragraph 4 of Article XIII of the Panama Canal Treaty of 1977. Payments 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 Ratification of the Panama Canal Treaty (adopted by the United States Senate on ), 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 exceed 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 interpretation of paragraph 1 of Article IX of the Panama Canal Treaty of 1977 which would permit the Republic of Panama to tax retroactively organizations and businesses operating, and citizens of the United States living, in the Canal Zone before .

(d)

Accumulated unpaid balances

Any accumulated unpaid balance under paragraph 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 operating surplus in the last year of the Treaty’s duration, 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 before 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 payments may be made to the Republic of Panama under paragraph 4(c) of Article XIII of the Panama Canal Treaty of 1977 unless unexpended funds are used to pay all costs of operation and maintenance of the canal, including but not limited to (1) operating expenses determined in accordance with generally accepted accounting principles, (2) payments to the Republic of Panama under paragraphs 4(a) and 4(b) of such Article XIII and under paragraph (5) of Article III of such Treaty, (3) amounts in excess of depreciation and amortization which are programed for plant replacement, expansion, and improvements, (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 dependents, and other categories of persons in accordance 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 accounts, reprograming of funds, use of funds for contingency purposes, or waivers of prohibitions.

(g)

Exemption from automatic budget cuts

Notwithstanding any other provision of law, no reduction under any order issued pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 shall apply to the Commission if the implementation of such an order would result in a payment to the Republic of Panama under paragraph 4(c) of article XIII of the Panama Canal Treaty of 1977 and this section.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Panama Canal Act of 1979

    Pub. L. 96–70 title I § 1341 · 93 Stat. 452

    Enacted · 22 U.S.C. § 3751

    Pub. L. 96–70, title I, § 1341, Sept. 27, 1979, 93 Stat. 482

    Source evidence

    Code source credit
    Pub. L. 96–70, title I, § 1341, Sept. 27, 1979, 93 Stat. 482

    Enacted provision · exact public law section
    Sec. 1341. payments to the republic of panama (a) The Commission shall pay to the Republic of Panama those payments required under paragraph 5 of Article III and paragraph 4 of Article XIII of the Panama Canal Treaty of 1977. Payments 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 Ratification 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 HI of the Panama Canal Treaty of 1977. (b) In determining whether operating revenues exceed 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 1311 of this Act, 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) The President shall not accede to any interpretation of paragraph 1 of Article IX of the Panama Canal Treaty of 1977 which would permit the Republic of Panama to tax retroactively organizations and businesses operating, and citizens of the United States living, in the Canal Zone before the effective date of this Act. (d) Any accumulated unpaid balance under paragraph 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 operating surplus in the last year of the Treaty’s duration, 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 before such date. (e) As provided in section 1602(b) of this Act, 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 payments may be made to the Republic of Panama under paragraph 4(c) of Article XIII of the Panama Canal Treaty of 1977 unless unexpended funds are used to pay all costs of operation and maintenance of the canal, including but not limited to (1) operating expenses determined in accordance with generally accepted accounting principles, (2) payments to the Republic of Panama under paragraphs 4(a) and 4(b) of such Article XIII and under paragraph (5) of Article III of such Treaty, (3) amounts in excess of depreciation and amortization which are programed for plant replacement, expansion, and improvements, (4) payments to the Treasury of the United States under section 1603 of this Act, (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 dependents, and other categories of persons in accordance with section 1321 of this Act, and (6) any costs of Treaty implementation associated with the maintenance and operation of the Panama Canal. (f) The prohibitions contained in this section and in sections 1302(c) and 1503 of this Act shall apply notwithstanding any other provision of law authorizing transfers of funds between accounts, reprograming of funds, use of funds for contingency purposes, or waivers of prohibitions.

  2. Pub. L. 99–368 § 6 · 100 Stat. 775

    Added · 22 U.S.C. § 3751(g)

    Pub. L. 99–368 added subsec. (g)

    Source evidence

    Code amendment note
    Subsec. (g). Pub. L. 99–368 added subsec. (g).

    Enacted provision · exact public law section
    SEC. 6. EXEMPTION OF PANAMA CANAL COMMISSION APPROPRIATIONS FROM THE BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985 (PUBLIC LAW 99–177). Section 1341 of the Panama Canal Act of 1979 (22 U.S.C. 3751) is amended by adding at the end thereof the following new subsection: “(g) Notwithstanding any other provision of law, no reduction under any order issued pursuant to the Balanced Budget and Emergency Deficit Control Act of 1985 shall apply to the Commission if 2 USC 901 note. the implementation of such an order would result in a payment to the Republic of Panama under paragraph 4(c) of article XIII of the Panama Canal Treaty of 1977 and this section.”. TIAS 10030.

  3. Pub. L. 100–203 title V § 5426 · 101 Stat. 1330

    Added · 22 U.S.C. § 3751(e)(7)

    Pub. L. 100–203 added cl. (7)

    Source evidence

    Code amendment note
    Subsec. (e)(7). Pub. L. 100–203 added cl. (7).

    Enacted provision · exact public law section
    SEC. 5426. PAYMENTS TO THE REPUBLIC OF PANAMA. The second sentence of section 1341(e) (22 U.S.C. 3751(e)) is amended— (1) by striking out “and” before “(6)”; and (2) by inserting before the period “, and (7) amounts programmed to meet working capital requirements”.

  4. Panama Canal Act Amendments of 1996

    Pub. L. 104–201 div. C title XXXV § 3548(b)(3) · 110 Stat. 2422

    1. Amended · 22 U.S.C. § 3751(f)

      Pub. L. 104–201, as amended by Pub. L. 105–261

    2. Substituted · 22 U.S.C. § 3751(f)

      Pub. L. 104–201, as substituted “sections 3712(b)” for “sections 3712(c)”

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 104–201, as amended by Pub. L. 105–261, substituted “sections 3712(b)” for “sections 3712(c)”.

    Enacted provision · exact public law section
    (3) Section 1341(f) (22 U.S.C. 3751(f)) is amended by striking out “section 1302(c)” and inserting in lieu thereof “section 1302(b)”.

    Effective date note
    Pub. L. 105–261, div. C, title XXXV, § 3512(b), Oct. 17, 1998, 112 Stat. 2271, provided that the amendment made by section 3512(b) is effective as of Sept. 23, 1996, and as if included in section 3548(b)(3) of the Panama Canal Act Amendments of 1996, Pub. L. 104–201, as enacted.

  5. National Defense Authorization Act for Fiscal Year 1998

    Pub. L. 105–85 div. C title XXXV § 3550(d)(7) · 111 Stat. 1629

    Substituted · 22 U.S.C. § 3751(f)

    Pub. L. 105–85, which directed substitution of “sections 3712(b)” for “sections 3712(c)”, could not be executed because the words “sections 3712(c)” did not appear subsequent to amendment by Pub. L. 104–201, as amended by Pub. L. 105–261. See 1996 and 1998 Amendments notes below and above

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 105–85, which directed substitution of “sections 3712(b)” for “sections 3712(c)”, could not be executed because the words “sections 3712(c)” did not appear subsequent to amendment by Pub. L. 104–201, as amended by Pub. L. 105–261. See 1996 and 1998 Amendments notes below and above.

  6. Strom Thurmond National Defense Authorization Act for Fiscal Year 1999

    Pub. L. 105–261 div. C title XXXV § 3512(b) · 112 Stat. 1920

    Changed · 22 U.S.C. § 3751(f)

    Pub. L. 105–261 made technical correction to Pub. L. 104–201. See 1996 Amendment note below

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 105–261 made technical correction to Pub. L. 104–201. See 1996 Amendment note below.

    Enacted provision · exact public law section
    (B) by striking out “on or after that date”; and

    Effective date note
    Pub. L. 105–261, div. C, title XXXV, § 3512(b), Oct. 17, 1998, 112 Stat. 2271, provided that the amendment made by section 3512(b) is effective as of Sept. 23, 1996, and as if included in section 3548(b)(3) of the Panama Canal Act Amendments of 1996, Pub. L. 104–201, as enacted.

6 of 7 references resolved to an enrolled provision · 1 partial

Editorial Notes

References in Text

The Balanced Budget and Emergency Deficit Control Act of 1985, referred to in subsec. (g), is title II of Pub. L. 99–177, , 99 Stat. 1038, which enacted chapter 20 (§ 900 et seq.) and sections 654 to 656 of Title 2, The Congress, amended sections 602, 622, 631 to 642, and 651 to 653 of Title 2, sections 1104 to 1106, and 1109 of Title 31, Money and Finance, and section 911 of Title 42, The Public Health and Welfare, repealed section 661 of Title 2, enacted provisions set out as notes under section 900 of Title 2 and section 911 of Title 42, and amended provisions set out as a note under section 621 of Title 2. For complete classification of this Act to the Code, see Short Title note set out under section 900 of Title 2 and Tables.

Amendments1986–1998 · 5 rounds

1998

Subsec. (f). Pub. L. 105–261 made technical correction to Pub. L. 104–201. See 1996 Amendment note below.

1997

Subsec. (f). Pub. L. 105–85, which directed substitution of “sections 3712(b)” for “sections 3712(c)”, could not be executed because the words “sections 3712(c)” did not appear subsequent to amendment by Pub. L. 104–201, as amended by Pub. L. 105–261. See 1996 and 1998 Amendments notes below and above.

1996

Subsec. (f). Pub. L. 104–201, as amended by Pub. L. 105–261, substituted “sections 3712(b)” for “sections 3712(c)”.

1987

Subsec. (e)(7). Pub. L. 100–203 added cl. (7).

1986

Subsec. (g). Pub. L. 99–368 added subsec. (g).

Statutory Notes and Related Subsidiaries

Effective Date of 1998 Amendment

Pub. L. 105–261, div. C, title XXXV, § 3512(b), , 112 Stat. 2271, provided that the amendment made by section 3512(b) is effective as of , and as if included in section 3548(b)(3) of the Panama Canal Act Amendments of 1996, Pub. L. 104–201, as enacted.

Effective Date of 1987 Amendment

Amendment by Pub. L. 100–203 effective , see section 5429 of Pub. L. 100–203, set out as a note under section 3712 of this title.

Effective Date of 1986 Amendment

Pub. L. 99–368, § 7, , 100 Stat. 777, provided that: “The amendment made by section 6 [amending this section] shall take effect with respect to fiscal year 1986 and subsequent fiscal years.”

Credits

1979–1998 · 6 acts
  1. 1979Pub. L. 96–70, title I, § 1341, , 93 Stat. 482
  2. 1986Pub. L. 99–368, § 6, , 100 Stat. 776
  3. 1987Pub. L. 100–203, title V, § 5426, , 101 Stat. 1330–274
  4. 1996Pub. L. 104–201, div. C, title XXXV, § 3548(b)(3), , 110 Stat. 2869
  5. 1997Pub. L. 105–85, div. C, title XXXV, § 3550(d)(7), , 111 Stat. 2074
  6. 1998Pub. L. 105–261, div. C, title XXXV, § 3512(b), , 112 Stat. 2271.
Show as published

(Pub. L. 96–70, title I, § 1341, , 93 Stat. 482; Pub. L. 99–368, § 6, , 100 Stat. 776; Pub. L. 100–203, title V, § 5426, , 101 Stat. 1330–274; Pub. L. 104–201, div. C, title XXXV, § 3548(b)(3), , 110 Stat. 2869; Pub. L. 105–85, div. C, title XXXV, § 3550(d)(7), , 111 Stat. 2074; Pub. L. 105–261, div. C, title XXXV, § 3512(b), , 112 Stat. 2271.)

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