Title 22Foreign Relations and IntercourseRelease 119-73

§3731 Reimbursements

Title 22 › Chapter CHAPTER 51— - PANAMA CANAL › Subchapter SUBCHAPTER I— - ADMINISTRATION AND REGULATIONS › Part Part 3— - Funds and Accounts › Subpart subpart iii— - interagency accounts › § 3731

Last updated Apr 6, 2026|Official source

Summary

The Commission must repay the Department of Labor’s Employees’ Compensation Fund for benefits paid to its workers. It must also repay other government agencies for similar payments made on its behalf. The Department of Defense must reimburse the Commission for money the Commission spent to keep defense facilities ready for the Department. Money given to the Department of Defense or to other agencies the President names for any fiscal year starting after September 30, 1979, can be used to run the schools and health services (including kindergartens and the Canal Zone College) that the Canal Zone Government and the Panama Canal Company ran before October 1, 1979, and to serve the same groups of people who had those services then. Agencies that pay for those services for eligible people can be fully repaid, minus what those people must pay, unless the agency is already responsible for the cost. The Commission’s funds may be used to repay agencies for services for Commission employees and for others eligible under the Panama Canal Treaty of 1977 and related agreements. For purposes of Panama reimbursing the United States under paragraph 8 of Article 10 of the 1977 Treaty for salaries and employment costs of Commission staff who help Panama run transferred activities, the Commission is treated as the United States. The President must operate the Canal Zone College, through the proper agency, until January 1, 2000, and the college should keep, as far as possible, the same level of services it had immediately before October 1, 1979. Unless this chapter says otherwise, Panama Canal Commission funds may not be given to other agencies (as “agency” is defined in 5 U.S.C. 551) or used for anything other than Panama Canal Commission activities.

Full Legal Text

Title 22, §3731

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)The Commission shall reimburse the Employees’ Compensation Fund, Bureau of Employee’s Compensation, Department of Labor, for the benefit payments to the Commission’s employees, and shall also reimburse other Government departments and agencies for payments of a similar nature made on its behalf.
(b)The Department of Defense shall reimburse the Commission for amounts expended by the Commission in maintaining defense facilities in standby condition for the Department of Defense.
(c)Notwithstanding any other provision of law, funds appropriated (for any fiscal year beginning after September 30, 1979) to or for the use of the Department of Defense, or to any other department or agency of the United States as may be designated by the President to carry out the purposes of this subsection, shall be available for—
(1)conducting the educational and health care activities, including kindergartens and college, carried out by the Canal Zone Government and the Panama Canal Company before October 1, 1979, and
(2)providing the services related thereto to the categories of persons to which such services were provided before October 1, 1979.
(d)Amounts expended for furnishing services referred to in subsection (c) of this section to persons eligible to receive them, less amounts payable by such persons, shall be fully reimbursable to the department or agency furnishing the services, except to the extent that such expenditures 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 pursuant to the Panama Canal Treaty of 1977 and related agreements.
(e)
(f)For purposes of the reimbursement of the United States by the Republic of Panama for the salaries and other employment costs of employees of the Commission who are assigned to assist the Republic of Panama in the operation of activities which are transferred to that Government as a result of any provision of the Panama Canal Treaty of 1977 and related agreements, which reimbursement is provided for in paragraph 8 of Article 10 of that Treaty, the Commission shall be deemed to be the United States of America.
(g)Notwithstanding any other provision of law, the President, through the appropriate department or agency of the United States, shall, until January 1, 2000, operate the educational institution 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)Except as expressly provided in this chapter, funds available to the Panama Canal Commission 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 appropriated for any function other than Panama Canal Commission activities.

Legislative History

Notes & Related Subsidiaries

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 Republic of Panama were available to defray the cost of certain health care services and educational services. 1997—Subsec. (c)(1). Pub. L. 105–85, § 3550(d)(2)(A), substituted “October 1, 1979” for “the

Effective Date

of this Act”. Subsec. (c)(2). Pub. L. 105–85, § 3550(d)(2)(B), substituted “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 “appropriations or” before “funds of the Commission” in introductory provisions. Subsec. (e). Pub. L. 104–201 inserted concluding provisions “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 Panama”. 1992—Subsec. (e)(1). Pub. L. 102–484 inserted “provided by medical facilities licensed and approved by the Republic 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 subsection (d) of this section,” after “shall be available” in provisions preceding par. (1) and inserting “employees 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 provided for in, or arising from, subsec. (e) of this section is terminated.

Effective Date

of 1988 AmendmentAmendment 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 AmendmentAmendment 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.

Reference

Citations & Metadata

Citation

22 U.S.C. § 3731

Title 22Foreign Relations and Intercourse

Last Updated

Apr 6, 2026

Release point: 119-73