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Title 22, Foreign Relations and IntercourseRelease 119-110

§3731 Reimbursements

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

Last updated Sep 22, 2026|Official source

Summary

The Commission must repay the Department of Labor’s Employees’ Compensation Fund for benefit payments made to the Commission’s employees. It also must repay other federal agencies when they make similar payments for the Commission. The Department of Defense must repay the Commission for money the Commission spends to keep defense facilities ready. For any fiscal year that begins after September 30, 1979, funds given to the Department of Defense or to any other agency the President names can be used to run the education and health programs (including kindergartens and college) that the Canal Zone Government and the Panama Canal Company ran before October 1, 1979, and to provide those services to the same groups of people. The Department of Defense or the agency the President picks must give those health services on terms at least as good as for its own employees and their families. Agencies that pay for those education and health services must be fully repaid, minus what the people receiving the services owe, unless the agency is otherwise responsible for the cost. The Commission’s funds may be used to repay costs for Commission employees and other people eligible under the Panama Canal Treaty of 1977 and related agreements. Other U.S. agencies operating in Panama, including the Smithsonian Institution, may use their funds to get repaid for their employees and dependents. For treaty reimbursements from the Republic of Panama under paragraph 8 of Article 10, the Commission is treated as the United States. The President, through a U.S. agency, must operate the Canal Zone College until January 1, 2000, keeping its services like they were before October 1, 1979. Except where this chapter allows it, Panama Canal Commission funds may not be used by other federal agencies or for anything other than Commission activities.

Full Legal Text

Title 22, §3731

Foreign Relations and Intercourse, Source: USLM XML via OLRC

(a)Reimbursement of the Employees’ Compensation Fund, Bureau of Employees’ Compensation, Department of Labor, and other Government departments and agencies by Commission
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)Reimbursement of Commission by Department of Defense
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)Designation of funds of Department of Defense or any other department or agency of United States to carry out purposes of this subsection (d) Reimbursement to departments or agencies furnishing services
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)
(2)providing the services related thereto to the categories of persons to which such services were provided before October 1, 1979.
Notwithstanding any other provision of law, the Department of Defense, or any department or agency designated by the President to provide health care services to those categories of persons referred to in this subsection, shall provide such services to such categories of persons on a basis no less favorable than that applied to its own employees and their dependents.
(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 employment costs
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)Operation of Canal Zone College
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)Prohibition of funds for uses other than Commission activities
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 22, Foreign Relations and Intercourse

Last Updated

Sep 22, 2026

Release point: 119-110