
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 22USC3751]

 
               TITLE 22--FOREIGN RELATIONS AND INTERCOURSE
 
                        CHAPTER 51--PANAMA CANAL
 
              SUBCHAPTER I--ADMINISTRATION AND REGULATIONS
 
                       Part 3--Funds and Accounts
 
               subpart v--accounts with republic of panama
 
Sec. 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 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 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 October 1, 1979.

(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.

(Pub. L. 96-70, title I, Sec. 1341, Sept. 27, 1979, 93 Stat. 482; Pub. 
L. 99-368, Sec. 6, Aug. 1, 1986, 100 Stat. 776; Pub. L. 100-203, title 
V, Sec. 5426, Dec. 22, 1987, 101 Stat. 1330-274; Pub. L. 104-201, div. 
C, title XXXV, Sec. 3548(b)(3), Sept. 23, 1996, 110 Stat. 2869; Pub. L. 
105-85, div. C, title XXXV, Sec. 3550(d)(7), Nov. 18, 1997, 111 Stat. 
2074; Pub. L. 105-261, div. C, title XXXV, Sec. 3512(b), Oct. 17, 1998, 
112 Stat. 2271.)

                       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, Dec. 12, 
1985, 99 Stat. 1038, as amended, which enacted chapter 20 (Sec. 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.


                               Amendments

    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).


                    Effective Date of 1998 Amendment

    Pub. L. 105-261, div. C, title XXXV, Sec. 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.


                    Effective Date of 1987 Amendment

    Amendment by Pub. L. 100-203 effective Jan. 1, 1988, see section 
5429 of Pub. L. 100-203, set out as a note under section 3712 of this 
title.


                    Effective Date of 1986 Amendment

    Section 7 of Pub. L. 99-368 provided that: ``The amendment made by 
section 6 [amending this section] shall take effect with respect to 
fiscal year 1986 and subsequent fiscal years.''

                  Section Referred to in Other Sections

    This section is referred to in section 3872 of this title.
