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(2) amounts of compensation for death or disability under the Federal Employees' Compensation Act, as amended (5 U.S.C., sec. 751 et seq.);

(3) amounts of overtime pay or other premium compensation; (4) benefits under the Civil Service Retirement Act, as amended (5 U.S.C., sec. 2251 et seq.);

(5) annual leave benefits; and

(6) other benefits related to basic compensation

the basic compensation of each employee who is a citizen of the United States shall include the rate of basic compensation established for his position, and the amount of the allowance and the differential deterinined, in the manner respectively provided by sections 144 and 146 of this title.

§ 149. Canal Zone Merit System

(a) Subject to this subchapter, the President or his designee may, from time to time, amend or modify the provisions of the Canal Zone Merit System of selection for appointment, reappointment, reinstatement, re-employment, and retention, with respect to positions, employees, and individuals under consideration for appointment to positions, established by regulations under authority of the President. (b) The Canal Zone Merit System, irrespective of whether the employees or individuals concerned are citizens of the United States or citizens of the Republic of Panama, shall:

(1) be based solely on the merit of the employee or individual and upon his qualifications and fitness to hold the position concerned; and

(2) apply uniformly within and among all departments to positions, employees, and individuals concerned.

(c) The Canal Zone Merit System shall:

(1) conform generally to policies, principles, and standards established by or in accordance with the Civil Service Act of January 16, 1883, as amended and supplemented; and

(2) include provision for appropriate interchange of citizens of the United States employed by the Government of the United States between the merit system and the competitive civil service of the Government of the United States.

§ 150. Salary protection upon conversion of compensation base Whenever the rate of basic compensation of an employee heretofore or hereafter established in relation to rates of compensation for the same or similar work in the continental United States is converted under authority of section 144 of this title to a rate of basic compensation established in relation to rates in areas other than the continental United States in the manner provided by section 144(b) of this title, he shall, pending transfer to a position for which the rate of basic compensation is established in relation to rates of compensation in the continental United States in the manner provided by section 144 (b) of this title, and as long as he remains in the same position or in a position of equal or higher grade, continue to receive a rate of basic compensation not less than that to which he was entitled immediately prior to the conversion.

§ 151. Review and adjustment of classifications, grades, and pay level; by department

An employee may request at any time that the department in which he is employed:

(1) review the classification of his position or the grade or pay level for his position, or both: and

(2) revise or adjust such classification, grade, and pay level, or any of them, as the case may be.

The request for review and revision or adjustment shall be submitted and adjudicated in accordance with the regularly established appeals procedure of the department.

§ 152. Same; Board of Appeals; duties

There shall be, in conformity with this subchapter, and as pre scribed by regulations promulgated by the President or his designee, a Canal Zone Board of Appeals. The regulations shall provide for, in accordance with this subchapter, the number of members of the Board, and their appointment, compensation, and terms of office, the selection of a Chairman of the Board, and the appointment and compensation of the Board's employees, and for other relevant and appropriate matters.

The Board shall review and determine the appeals of employees in accordance with section 153 of this title, and its decisions shall conform with the provisions of this subchapter.

§ 153. Same; appeals to Board; procedure; finality of decisions (a) An employee may appeal to the Canal Zone Board of Appeals from an adverse determination made under section 151 of this title. The appeal shall be made in writing within a reasonable time, as prescribed in regulations promulgated by, or under the authority of, the President, after the date of the transmittal by the department to the employee of written notice of the adverse deter

mination.

(b) The Board may authorize, in connection with an appeal pursuant to subsection (a) of this section, a personal appearance before the Board by the employee, or by his representative designated for the purpose.

(c) After investigation and consideration of the evidence submitted, the Board shall:

(1) prepare a written decision on the appeal;

(2) transmit its decision to the department concerned; and (3) transmit copies of the decision to the employee concerned or to his designated representative.

(d) The decision of the Board on any question or other matter relating to an appeal is final and conclusive. The department concerned shall take action in accordance with the decision of the Board.

§ 154. Participation in training programs

Training programs established by a department shall be applied uniformly to each employee irrespective of whether he is a citizen of the United States or the Republic of Panama. Employees who are citizens of the Republic of Panama shall be afforded opportunity to participate in training programs on the same basis as that upon which opportunity to participate therein is afforded to employees who are citizens of the United States.

§ 155. Administration by President; regulations; delegation of authority

(a) The President shall coordinate the policies and activities of the respective departments under this subchapter, and may promul gate regulations necessary and appropriate to carry out the provisions and accomplish the purposes of this subchapter.

(b) The President may delegate any authority vested in him by this subchapter, and may provide for the redelegation of any such authority.

§ 156. Applicability of other laws

This subchapter does not affect the applicability of:

(1) the Veterans' Preference Act of 1944, as amended (5 U.S.C., sec. 851 et seq.);

(2) section 6 of the Act of August 24, 1912 (37 Stat. 555), as amended (5 U.S.C., sec. 652); and

(3) section 23 of the Independent Offices Appropriation Act, 1935 (48 Stat. 522), as amended (5 U.S.C., sec. 673c), or section 205 of the Federal Employees Pay Act of 1945, as amended (5 U.S.C., sec. 913), to those classes of employees within the scope of those two sections on July 25, 1958.

Subchapter IV-Retirement and Other Benefits

§ 181. Cash relief to certain former employees; applicability of Civil Service Retirement Act to certain employees

(a) The Governor of the Canal Zone, under the regulations prescribed by the President pursuant to the Act of July 8, 1937, as amended (50 Stat. 478; 68 Stat. 17), may continue the payments of cash relief to those individual former employees of the Canal Zone Government not coming within the scope of the former Canal Zone Retirement Act whose services were terminated prior to October 5, 1958, because of unfitness for further useful service by reason of mental or physical disability resulting from age or disease. Subject to subsection (b) of this section, such cash relief may not exceed $1.50 per month for each year of service of the employees so furnished relief, with a maximum of $45 per month, nor be paid to any employee who, at the time of termination for disability prior to October 5, 1958, had less than ten years' service with the Canal Zone Government and its predecessor agencies, including any service with the Panama Canal Company and its predecessor agencies, on the Isthmus of Panama.

(b) An additional amount of $10 per month, as authorized by the Public Law 86-672 (July 14, 1960, 74 Stat. 552), effective July 1, 1960, shall:

(1) be paid to each person who, on January 2, 1963, is receiving payment of cash relief under authority of the Act of July 8, 1937, as amended (50 Stat. 478; 68 Stat. 17); and

(2) be paid to each person who receives, or, after January 2, 1963, becomes entitled to receive, payment of cash relief under subsection (a) of this section.

The monthly payment of $10 herein provided for shall be in addition to any payments received before January 2, 1963, under the Act of July 8, 1937, as amended, or received under subsection (a) of this section, and shall be made without regard to the limitations contained therein.

(c) The Civil Service Retirement Act applies with respect to those individuals who were in the service of the Canal Zone Government or the Panama Canal Company on October 5, 1958, and who, except for the operation of section 13(a) (1) of the Act of July 25, 1958 (72 Stat. 410), would have been within the classes of individuals subject to the Act of July 8, 1937.

§ 182. Appliances for employees injured prior to September 7, 1916

The Governor may purchase artificial limbs or other appliances for persons who were injured in the service of the Isthmian Canal Commission or of the Panama Canal prior to September 7, 1916.

Subchapter V-Miscellaneous

§201. Compensation of persons in military, naval, or Public Health Service who serve Canal Zone Government or

Panama Canal Company

(a) If the person appointed as Governor of the Canal Zone and President of the Panama Canal Company, or as Lieutenant Governor of the Canal Zone and Vice President of the Panama Canal Company, is in the military service of the United States, the amount of the official salary paid to him as a military officer shall be deducted from the amount of salary or compensation which is fixed by or pursuant to law for those respective offices.

(b) Except as provided in subsection (a) of this section, persons appointed to or employed in positions in the Canal Zone Government or the Panama Canal Company, who are under assignment for those purposes by the military, naval, or Public Health Service, shall not be paid by the Canal Zone Government or the Panama Canal Company any amount in excess of their military, naval, or Public Health Service pay for the period of that service.

(c) The Canal Zone Government and the Panama Canal Company shall annually pay to the military, naval, and Public Health services of the United States amounts sufficient to reimburse each of those services for the official salary paid to any person in their service for the period of appointment or employment by the Canal Zone Government or the Panama Canal Company.

(d) In the case of persons retired as members of a regular component of the armed forces or the Public Health Service of the United States who are appointed to or employed in positions in the Canal Zone Government or the Panama Canal Company, the amount of their retired pay shall be deducted from the amount of their civilian salary or compensation. This subsection does not require the deduction of the retired pay of any warrant officer or enlisted man.

Sec.

CHAPTER 9-FUNDS AND ACCOUNTS

231. Consolidation of functions in relation to certain funds.

232. Reimbursement of amounts expended in maintaining defense facilities and furnishing certain services.

233. Use of funds for free medical and hospital care prohibited.

234. Sale of water to Republic of Panama.

235. Disaster relief.

§ 231. Consolidation of functions in relation to certain funds The consolidation of the functions of receiving, disbursing and accounting for the funds of the Canal Zone Government and the Panama Canal Company with the functions of receiving, disbursing and accounting for the funds appropriated for the Canal Zone Government is authorized insofar as may be practicable, but separate accounts shall be kept of the transactions under each fund.

§ 232. Reimbursement of amounts expended in maintaining defense facilities and furnishing certain services

(a) Notwithstanding any other law:

(1) the Department of Defense shall reimburse the Panama Canal Company for amounts expended by the Company in maintaining defense facilities in standby condition for the Department of Defense; and

(2) amounts expended by the Canal Zone Government for furnishing education, and hospital and medical care to employees of agencies of the United States and their dependents, other than the Panama Canal Company and Canal Zone Government, less

amounts payable by the employees and their dependents, shall be fully reimbursable to the Canal Zone Government by those agencies.

(b) The appropriation or fund of the agency bearing the cost of the compensation of the employee concerned is made available for reimbursements under subsection (a) (2) of this section.

(c) Appropriations of the Department of Defense available for medical care are made available for the reimbursement of the Canal Zone Government for the cost of providing medical care for dependents of military personnel (to the extent that the care is authorized by chapter 55 of title 10, U.S. Code) in facilities operated by the Canal Zone Government.

§ 233. Use of funds for free medical and hospital care prohibited

Funds of the Canal Zone Government or the Panama Canal Company may not be used for providing free medical and hospital care to employees of the Panama Canal Company or the Canal Zone Government.

§ 234. Sale of water to Republic of Panama

Pending the establishment by the Republic of Panama of an independent water-supply system, and as long as the Republic desires to utilize a supply of water from the Canal Zone, the Republic of Panama shall pay to the Panama Canal Company, for the water so supplied, at such reasonable rate as may be agreed upon by the United States and the Republic of Panama.

§ 235. Disaster relief

If an emergency arises because of disaster or calamity by flood.. hurricane, earthquake, fire, pestilence, or like cause, not foreseen or otherwise provided for, and occurring in the Canal Zone, or occurring in the Republic of Panama in such circumstances as to constitute an actual or potential hazard to health, safety, security, or property in the Canal Zone, the Canal Zone Government and the Panama Canal Company may expend available funds and utilize or furnish materials, supplies, equipment, and services for relief, assistance, and protection. CHAPTER 11-CLAIMS FOR INJURIES TO PERSONS OR PROPERTY

Sec.

BUBCHAPTER I-CLAIMS ARISING FROM CIVIL GOVERNMENT

271. Claims for losses of, or damages to, property.

BUBCHAPTER II-CLAIMS ARISING FROM OPERATIONS OF CANAL

291. Injuries in locks of Canal.

202. Injuries outside locks.

293. Measure of damages generally.

294. Delays for which no responsibility assumed.

295. Settlement of claims.

296. Actions on claims.

297. Investigation of accident or injury giving rise to claim.

Subchapter I-Claims Arising From Civil Government

§ 271. Claims for losses of, or damages to, property

The Governor, or his designee, may adjust and pay claims for losses of, or damages to, property arising from the civil government, including health, sanitation and protection, of the Canal Zone.

An award made to a claimant pursuant to this section shall be payable out of any moneys appropriated or made available for the civil government, including health, sanitation and protection, of the Canal

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