Panama Canal Act of 1979

Panama Canal Act of 1979 - Stipulates that acceptance of payments by Panama pursuant to this Act will constitute recognition by Panama that the United States rightfully exercised sovereignty in the Canal Zone under earlier treaties.

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. Establishes a Supervisory Board over the Commission composed of U.S. nationals and Panamanians, with the U.S. nationals to include members experienced in steamship lines operations, exports, and labor matters. Requires the President to appoint an Administrator, with the advice and consent of the Senate, a Deputy Administrator, and a Chief Engineer.

Establishes a Panama Canal Consultative Committee to be a forum for the exchange of views between the United States and Panama. Establishes 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. Requires the Board to adopt a code of conduct binding on Commission employees. Establishes an Office of Ombudsman within the Commission to receive employee complaints and suggestions.

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.

Requires the President to establish a Panama Canal Employment System in accordance with Treaty provisions similar to the merit based competitive service. Directs the Commission and other Federal agencies, which so elect, to conduct its employment and pay practices in accordance with such 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 renumeration and benefits. Stipulates the procedure for review and appeals of classifications, grades, and pay levels. Directs the President to establish a Panama Canal Board of Appeals. Exempts Canal Zone employees, other than Federal employees, from the Fair Labor Standards Act of 1938.

Provides for terms and conditions of employment for employees transferred to the Commission or Federal agencies in Panama similar to those available prior to transfer. Preserves transferred employees' qualification for early retirement benefits and creditable service. Exempts teachers formerly employed by the Canal Zone Government who were transferred to a teaching position within the Defense Department Overseas Dependent School System, in the Republic of Panama, from the compensation and leave provisions of the Defense Department Overseas Teachers Pay and Personnel Practices Act. Authorizes agency heads to grant sabbaticals to teachers transferred from the Canal Zone Government school system.

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. Includes Commission and Federal employees in the Canal Zone within the Federal employee labor-management provisions even though such employees are aliens, noncitizens, or supervisors.

Chapter 5: Funds and Accounts - Terminates the Treasury accounts for the Canal Zone Government and the Panama Canal Company. Transfers the Company's balances into the Panama Canal Commission Fund. Authorizes necessary appropriations to the Commission. Authorizes the Secretary of Treasury to establish a Panama Canal Emergency Fund. Limits the uses of such 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. Provides for a General Accounting Office audit, which is to include a listing of the costs to the United States in implementing the Treaty. 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. Directs the Defense Department to operate the Canal Zone College until January 1, 2000.

Terminates the Canal Zone postal service. Continues the applicability of Canal Zone Code provisions concerning postal-savings deposits and certificates and postal money orders in order to meet U.S. obligations. Directs the Commission to assume the obligations of such postal service. Authorizes mail from the United States to be routed through military post offices in Panama. Directs the Commission to assist such post offices in the distribution of mail. Repeals specified U.S. Code provisions concerning the Canal Zone postal service.

Requires the Commission to make those payments required by the Treaty to Panama. Stipulates that the public services payments shall be audited annually. Prohibits any payments to Panama if Panama levies retroactive (prior to the effective date of the treaty) taxes on organizations and individuals. Sets forth conditions to be met before paying contingency payments to Panama pursuant to the Treaty. Permits the Commission to provide services and materials to 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 $120,000 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. Authorizes the President to transfer property in the Panama Canal Zone pursuant to the Treaty if Panama meets specified conditions. Requires the President to notify Congress prior to any transfer.

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. Limits the amount of toll increases. Sets forth the formula for calculating interest on U.S. investments in the Panama Canal.

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. Expresses the sense of Congress that organizations and individuals in the Canal Zone may not be taxed retroactively by Panama.

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 during the transition period, unless terminated earlier by the President.

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.

Amends the Canal Zone Code to provide for the transfer of custody of all prisoners sentenced to more than one year imprisonment by the U.S. District Court for the Canal Zone to the Attorney General. Provides for the transfer of all prisoners sentenced to less than one year of imprisonment to the Panama Canal Commission.

Title III: General Provisions - Chapter 1: Cemeteries - Authorizes appropriations for the disinterment, transportation, and reinterment of the remains of U.S. citizens buried in the Canal Zone.

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: Reports, Amendments, Repeals and Redesignation, Effective Date - Requires the President to report annually to Congress on the status of the rights and responsibilities of the United States under the Treaty.

Makes certain technical and conforming amendments. Amends the Tariff Act of 1930 to exempt U.S. fishing vessels from duty for equipment used in or repairs made in Panama. 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. Redesignates the Canal Zone Code as the Panama Canal Code.

Makes this Act effective on the date the Treaty enters into force unless otherwise provided.