(a) “Position” and “employee” definedNotwithstanding paragraphs (2) and (3) of section 3651 of this title, as used in this section—
“position” means a civilian position; and
“employee” means an individual serving in a position in the Department of Defense whose permanent duty station is in the area which, before October 1, 1979, was known as the Canal Zone.
(b) Covered employeesUnder regulations prescribed by or under authority of the President, the Department of Defense may grant a quarters allowance in the case of—
any employee who is a citizen of the United States and who, before October 1, 1979, was employed by the Panama Canal Company, the Canal Zone Government, or any other agency, in the area then known as the Canal Zone; and
any other employee who is a citizen of the United States and who (before, on, or after the effective date of this section) is or was recruited within the United States;
for whom adequate Government owned or leased quarters are not made available.
(c) Determination of amountThe amount of any quarters allowance granted to an employee under this section shall be determined in accordance with the regulations prescribed under subsection (b) of this section, except that such allowance for any period may not exceed the amount, if any, by which—
(1) the lesser of—
the actual expenses for rent and utilities incurred by the employee during such period while occupying quarters other than Government owned or leased quarters; or
the maximum amount which would be authorized for such employee with respect to such period under the Department of State Standardized Regulations (Government Civilians, Foreign Areas) if such employee were covered by those regulations;
the estimated total cost of rent and utilities which the employee would have been charged if Government owned or leased quarters had been provided on a rental basis during such period.
Pub. L. 98–600, § 2, Oct. 30, 1984, 98 Stat. 3146, provided that:
“The amendments made by this Act [enacting this section] shall take effect on October 1, 1984, and shall apply with respect to utility costs incurred, and rent payable for any period beginning, on or after that date.”
Ex. Ord. No. 12520. Quarters Allowance to Department of Defense Employees in Panama
Ex. Ord. No. 12520, June 19, 1985, 50 F.R. 25683, provided:
By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 1217a of the Panama Canal Act of 1979 (22 U.S.C. 3657a), it is hereby ordered as follows:
Section 1. The Secretary of Defense is authorized to prescribe the regulations referred to in section 1217a of the Panama Canal Act of 1979 [22 U.S.C. 3657a], relating to quarters allowances.
Sec. 2. The regulations prescribed under Section 1 shall be consistent with Article VII(4) of the Agreement in Implementation of Article IV of the Panama Canal Treaty and with all other relevant provisions of the Panama Canal Treaty and related agreements.
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