B-150298, MARCH 6, 1963, 42 COMP. GEN. 454

B-150298: Mar 6, 1963

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ARE ALLOCABLE BY THE CANAL ZONE GOVERNMENT TO THE EMPLOYING AGENCIES WITHOUT THE AUTHORITY OR APPROVAL OF THE AGENCIES. OR THE REPUBLIC OF PANAMA IS RELATED TO THE OFFICIAL ACTIVITIES OF THE AGENCIES. HE EXPLAINS THAT THE HOSPITAL TREATMENT OF THESE PERSONS WAS NEITHER AUTHORIZED NOR APPROVED BY YOUR DEPARTMENT. IT IS STATED IN THE LETTER THAT YOUR DEPARTMENT'S AUTHORITY TO PROVIDE MEDICAL SERVICES IS CONTAINED IN SECTION 941 (A) AND (B) OF THE FOREIGN SERVICE ACT OF 1946. IT IS EXPLAINED THAT YOUR DEPARTMENT HAS FURTHER LIMITED THE AVAILABILITY OF MEDICAL SERVICES BY REGULATION IN SECTION 684.1 OF VOLUME 3 OF THE FOREIGN AFFAIRS MANUAL. THE ACTING DEPUTY UNDER SECRETARY STATES THAT NO AUTHORITY IS GIVEN EITHER BY REGULATION OR STATUTE FOR PROVISION OF MEDICAL SERVICES FOR LOCAL EMPLOYEES OR THEIR DEPENDENTS.

B-150298, MARCH 6, 1963, 42 COMP. GEN. 454

PANAMA CANAL - MEDICAL AND EDUCATIONAL SERVICES - REIMBURSEMENT - AGENCY RESPONSIBILITY - COSTS UNRECOVERED FROM EMPLOYEES THE UNRECOVERED COSTS, OVER AND ABOVE THOSE CHARGEABLE TO THE INDIVIDUAL, FOR HOSPITAL AND MEDICAL SERVICES FURNISHED FEDERAL EMPLOYEES AND THEIR DEPENDENTS LOCATED IN THE CANAL ZONE OR CONTIGUOUS AREAS, INCLUDING LOCAL EMPLOYEES IN THE ABSENCE OF A STATUTORY PROHIBITION, PURSUANT TO SECTION 105 OF THE CIVIL FUNCTIONS APPROPRIATIONS ACT, 1954, AS AMENDED, ARE ALLOCABLE BY THE CANAL ZONE GOVERNMENT TO THE EMPLOYING AGENCIES WITHOUT THE AUTHORITY OR APPROVAL OF THE AGENCIES, WITH THE EXCEPTION OF THE SERVICES FURNISHED EMPLOYEES STATIONED IN THE REPUBLIC OF PANAMA, SECTION 105 SHIFTING THE BURDEN OF THE UNRECOVERED COSTS FROM THE CANAL ZONE GOVERNMENT TO THE USING AGENCIES FOR THOSE EMPLOYES WHOSE PRESENCE IN THE CANAL ZONE, OR THE REPUBLIC OF PANAMA IS RELATED TO THE OFFICIAL ACTIVITIES OF THE AGENCIES, AND THE HOSPITAL AND MEDICAL COSTS TO THE EMPLOYEES BEING LIMITED TO THE CHARGES ESTABLISHED BY THE CANAL ZONE GOVERNMENT, CONTRIBUTIONS BY DEPARTMENTS OR AGENCIES MAY NOT BE RECOVERED FROM EMPLOYEES OR THEIR DEPENDENTS.

TO THE SECRETARY OF STATE, MARCH 6, 1963:

IN LETTER OF NOVEMBER 13, 1962, THE ACTING DEPUTY UNDER SECRETARY OF STATE FOR ADMINISTRATION STATES THAT THE CANAL ZONE GOVERNMENT HAS INFORMED THE EMBASSY AT PANAMA THAT SECTION 105 OF THE CIVIL FUNCTIONS APPROPRIATIONS ACT, 1954, 67 STAT. 197, 202, AS AMENDED BY SECTION 107 OF THE CIVIL FUNCTIONS APPROPRIATION ACT, 1955, 68 STAT. 330, 335, AND THE DECISIONS OF THE GENERAL ACCOUNTING OFFICE THEREUNDER REQUIRE THAT THE DEPARTMENT OF STATE PAY AMOUNTS TOTALING $11,813.29 FOR CARE FURNISHED AT THE GORGAS AND COCO SOLO HOSPITALS TO EMPLOYEES OF THE DEPARTMENT, UNITED STATES INFORMATION AGENCY AND AID FOR INTERNATIONAL DEVELOPMENT, AND THEIR DEPENDENTS. HE EXPLAINS THAT THE HOSPITAL TREATMENT OF THESE PERSONS WAS NEITHER AUTHORIZED NOR APPROVED BY YOUR DEPARTMENT.

IT IS STATED IN THE LETTER THAT YOUR DEPARTMENT'S AUTHORITY TO PROVIDE MEDICAL SERVICES IS CONTAINED IN SECTION 941 (A) AND (B) OF THE FOREIGN SERVICE ACT OF 1946, AS AMENDED, 22 U.S.C. 1156 (A) AND (B). IT IS EXPLAINED THAT YOUR DEPARTMENT HAS FURTHER LIMITED THE AVAILABILITY OF MEDICAL SERVICES BY REGULATION IN SECTION 684.1 OF VOLUME 3 OF THE FOREIGN AFFAIRS MANUAL. THE ACTING DEPUTY UNDER SECRETARY STATES THAT NO AUTHORITY IS GIVEN EITHER BY REGULATION OR STATUTE FOR PROVISION OF MEDICAL SERVICES FOR LOCAL EMPLOYEES OR THEIR DEPENDENTS; AND THAT THE MEDICAL CARE WHICH GENERATED THE INSTANT BILLINGS AROSE ENTIRELY FROM INSTANCES IN WHICH PAYMENT BY THE DEPARTMENT WAS NOT AUTHORIZED EITHER BY STATUTE OR BY REGULATION.

THE LETTER CONTINUES:

THE DEPARTMENT IS AWARE THAT YOU HAVE HELD, IN ACCORDANCE WITH THE HISTORY OF SECTION 105 OF THE CIVIL FUNCTIONS ACT, THAT THAT ACT MAKES AGENCY APPROPRIATIONS AVAILABLE FOR PAYMENT TO THE CANAL ZONE GOVERNMENT FOR MEDICAL SERVICES RENDERED EMPLOYEES OF THE AGENCY AND THEIR DEPENDENTS, EVEN THOUGH THE AGENCY WOULD OTHERWISE LACK AUTHORITY TO MAKE SUCH PAYMENTS. IT IS, HOWEVER, THE DEPARTMENT'S UNDERSTANDING THAT THE STATUTORY HISTORY OF THE AMENDMENT TO SECTION 105 WAS DESIGNED SOLELY TO RELIEVE THE CANAL ZONE GOVERNMENT OF BEARING THE FULL COST OF THE SERVICES RENDERED--- OVER AND ABOVE THAT CHARGED TO THE INDIVIDUALS--- BY DISTRIBUTING THE UNRECOVERED COSTS AMONG THE USING AGENCIES. THE DEPARTMENT IS NOT SEEKING TO UTILIZE CANAL ZONE HOSPITALS COST FREE. THE CONTRARY, IT HAS SOUGHT THROUGH NEGOTIATIONS WITH THE CANAL ZONE GOVERNMENT TO ESTABLISH SOME MEASURE OF CONTROL OVER ENTRANCE INO THOSE HOSPITALS BY PERSONS FOR WHOM THE CANAL ZONE GOVERNMENT WOULD BILL THE DEPARTMENT; BUT THE CANAL ZONE AUTHORITIES HAVE DISMISSED THE DEPARTMENT'S APPROACHES ON THE GROUND THAT THE ZONE GOVERNMENT IS AUTHORIZED TO HOLD THE GATES TO THE ZONE HOSPITALS OPEN TO ANY AND ALL EMPLOYEES OF AN AGENCY AND THEIR DEPENDENTS REGARDLESS OF THE WISHES OF THE AGENCY, AND THEN ALLOCATE PART OF THE EXPENSE THEREFOR TO THE AGENCY. THE DEPARTMENT HAS UNEARTHED NOTHING IN THE HISTORY OF SECTION 105 TO INDICATE THAT CONGRESS INTENDED TO PERMIT THE ZONE AUTHORITIES TO ADMIT PERSONNEL TO THE HOSPITALS AND CHARGE THE AGENCY IN THE FACE OF THE AGENCY'S COMMUNICATION TO THE HOSPITALS THAT IT WAS NOT REQUESTING TREATMENT OF THE PERSONNEL AND DID NOT WISH TO ASSUME ANY COST IN CONNECTION THEREWITH. NOT ONLY IS THERE NO EVIDENCE OF ANY SUCH INTENTION ON THE PART OF CONGRESS; BUT IT WOULD BE MOST UNUSUAL TO INCLUDE SUCH A BROAD AUTHORITY IN AN APPROPRIATION ACT. IT WAS SOME METHOD OF ADVANCE CLEARANCE PROCEDURE OF THIS NATURE WHICH THE DEPARTMENT SOUGHT TO WORK OUT WITH THE ZONE AUTHORITIES AND TO WHICH THEY HAVE REFUSED TO AGREE, RESULTING IN THE BILLINGS HERE IN ISSUE. IN 38 C.G. 408, YOU OBSERVED THAT YOU SAW NO OBJECTION TO A SYSTEM OF ADMINISTRATIVE CONTROLS WORKED OUT BY THE DEPARTMENT OF DEFENSE, BUT SUBJECT TO THE PROVISO THAT SUCH CONTROLS DO NOT "PRECLUDE PERSONS AUTHORIZED BY LAW TO RECEIVE HOSPITAL AND MEDICAL SERVICES FROM THE CANAL ZONE GOVERNMENT . . . FROM BEING FURNISHED SUCH SERVICES.' IF THE PHRASE "AUTHORIZED BY LAW" REFERRED TO THE AUTHORITY OF THE AGENCY TO PROVIDE FOR MEDICAL SERVICES, MAY THE ZONE AUTHORITIES REFUSE TO ACCEPT ANY SUCH CONTROLS AND BILL THE AGENCY FOR PERSONS NOT COVERED BY ITS AUTHORITY?

IT IS POINTED OUT IN THE LETTER THAT FUNDS APPROPRIATED FOR YOUR DEPARTMENT'S HEALTH PROGRAM REFLECT NO BUDGETING FOR EXPENDITURES OF THE NATURE INVOLVED HERE AND THAT IF YOUR DEPARTMENT MUST PAY THESE BILLINGS THE FUNDS AVAILABLE FOR MEDICAL SERVICES AUTHORIZED BY THE FOREIGN SERVICE ACT AND REGULATIONS WILL BE CORRESPONDINGLY DEPLETED. IT IS STATED IN THE LETTER THAT IT CAN HARDLY HAVE BEEN THE INTENTION OF CONGRESS IN THE CIVIL FUNCTIONS ACT TO OVERRIDE THE UNIFORM LEVEL OF FINANCIAL ASSISTANCE FOR MEDICAL SERVICES CONTEMPLATED BY SECTION 941 OF THE FOREIGN SERVICE ACT, 22 U.S.C. 1156, FOR DEPARTMENT EMPLOYEES AND THEIR DEPENDENTS AND THE FUNDS APPROPRIATED ANNUALLY TO CARRY OUT SECTION 941 OF SUCH ACT.

THE LETTER CONTINUES:

FROM THE ATTACHED SAMPLE MATERIAL, YOU WILL NOTE NOT ONLY THAT THE PATIENTS LISTED ARE LOCAL EMPLOYEES AND THEIR DEPENDENTS OR AMERICAN EMPLOYEES AND THEIR DEPENDENTS IN CIRCUMSTANCES IN WHICH MEDICAL SERVICES ARE NOT PAYABLE UNDER THE FOREIGN SERVICE ACT AND REGULATIONS THEREUNDER, BUT ALSO THAT MOST OF THESE PATIENTS ARE NOT STATIONED IN THE CANAL ZONE. INDEED, SOME HAVE BEEN STATIONED IN CENTRAL OR SOUTH AMERICAN COUNTRIES OTHER THAN PANAMA. THEORETICALLY, AS FAR AS THE LANGUAGE IS CONCERNED, IF AN EMPLOYEE OF AN AGENCY STATIONED IN THE UNITED STATES WERE TO APPEAR IN THE CANAL ZONE AND GAIN ADMITTANCE TO ONE OF THE HOSPITALS, WITHOUT THE KNOWLEDGE OR APPROVAL OF THE EMPLOYING AGENCY, THE HOSPITAL COULD TREAT HIM AND BILL THE EMPLOYING AGENCY. FOR THIS PURPOSE, THE LANGUAGE DOES NOT DISTINGUISH BETWEEN AN EMPLOYEE STATIONED IN PANAMA AND ONE STATIONED IN WASHINGTON. ALTHOUGH, THERE IS AN ALLUSION IN THE LEGISLATIVE HISTORY TO "PANAMA" IN CONNECTION WITH THE SUPPLY OF MEDICAL SERVICES BY THE CANAL ZONE HOSPITALS, THAT ALLUSION SHOULD BE BALANCED AGAINST THE WORDING OF THE STATUTE AND THE COMMON TENDENCY TO REFER TO THE ZONE ITSELF AS PANAMA. THE GIST OF THE DEPARTMENT'S CONTENTION IN THIS RESPECT IS THAT THE EMBODIMENT OF THIS PROVISION IN AN ACT OF THIS KIND,UNDER PROVISIONS DEALING WITH THE ZONE, IS PERSUASIVE EVIDENCE THAT IT WAS INTENDED TO APPLY ONLY TO PERSONS STATIONED IN THE ZONE, AS PART OF THE ADMINISTRATION OF THE ZONE, AND NOT CARTE BLANCHE AUTHORITY TO RECEIVE PERSONS FROM EVERYWHERE ELSE IN THE WORLD AT THE COST OF THEIR EMPLOYING AGENCY. ONE CONSTRUES THE STATUTE TO APPLY TO THOSE STATIONED IN PANAMA, THE DEPARTMENT HAS GREAT DIFFICULTY IN PERCEIVING WHY IT DOES NOT APPLY ELSEWHERE.

IN VIEW OF THE FOREGOING THE ACTING DEPUTY UNDER SECRETARY FOR ADMINISTRATION REQUESTS THAT WE GIVE FURTHER CONSIDERATION TO OUR INTERPRETATION OF SECTION 105 OF THE CIVIL FUNCTIONS APPROPRIATIONS ACT, 1954, AS AMENDED, IN ORDER THAT YOUR DEPARTMENT AND OTHERS BE IN A POSITION TO EXERCISE APPROPRIATE ADMINISTRATIVE CONTROLS.

ALSO, IF WE ARE OF THE OPINION THAT SECTION 105 REQUIRES YOUR DEPARTMENT TO PAY FOR MEDICAL EXPENSES IT IS OTHERWISE NOT AUTHORIZED TO PAY, INQUIRY IS MADE AS TO WHETHER WE WOULD OBJECT IF YOUR DEPARTMENT SOUGHT TO RECOVER FROM THE EMPLOYEES AND DEPENDENTS SUBJECTING IT TO THIS LIABILITY TO THE HOSPITALS THE AMOUNT OF THAT LIABILITY, EITHER BY OFFSET AGAINST THEIR SALARIES OR OTHERWISE UNDER EXISTING REPAYMENT PROCEDURES. A FURTHER QUESTION IS RAISED AS TO WHETHER SUCH MONIES, IF COLLECTED FROM THE EMPLOYEES AND DEPENDENTS, WOULD HAVE TO BE COVERED INTO MISCELLANEOUS RECEIPTS.

SECTION 105 OF THE CIVIL FUNCTIONS APPROPRIATIONS ACT, 1954, AS AMENDED BY SECTION 107 OF THE CIVIL FUNCTIONS APPROPRIATION ACT, 1955, READS AS FOLLOWS:

* * * AMOUNTS EXPENDED BY THE PANAMA CANAL COMPANY IN MAINTAINING DEFENSE FACILITIES IN STANDBY CONDITION FOR THE DEPARTMENT OF DEFENSE HEREAFTER SHALL, NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW, BE FULLY REIMBURSABLE TO THE PANAMA CANAL COMPANY BY THE DEPARTMENT OF DEFENSE. 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 SUCH EMPLOYEES AND THEIR DEPENDENTS HEREAFTER SHALL, NOTWITHSTANDING ANY OTHER PROVISION OF LAW, BE FULLY REIMBURSABLE TO THE CANAL ZONE GOVERNMENT BY SUCH AGENCIES. THE APPROPRIATION OR FUND OF ANY SUCH OTHER AGENCY BEARING THE COST OF THE COMPENSATION OF THE EMPLOYEE CONCERNED IS HEREBY MADE AVAILABLE FOR SUCH REIMBURSEMENTS.

THE LEGISLATIVE HISTORY OF SECTION 105, AS AMENDED, MAKES IT CLEAR THAT PRIOR TO ENACTMENT THEREOF THE CANAL ZONE GOVERNMENT FURNISHED FREE PRIMARY AND SECONDARY EDUCATION FOR CHILDREN OF ALL RESIDENTS OF THE CANAL ZONE AND OF EMPLOYEES OF THE UNITED STATES IN THE ADJACENT TERRITORY OF THE REPUBLIC OF PANAMA. ALSO, THE CANAL ZONE GOVERNMENT FURNISHED HOSPITAL SERVICE AT REDUCED RATES, DEPENDING ON THE ABILITY OF THE HEAD OF THE FAMILY TO PAY, TO FAMILIES OF CANAL EMPLOYEES AND TO EMPLOYEES OF OTHER GOVERNMENT AGENCIES AND THEIR FAMILIES. SEE PAGE 1536, SENATE HEARINGS ON CIVIL FUNCTIONS, DEPARTMENT OF ARMY APPROPRIATIONS, 1955. CONNECTION WITH THE FURNISHING OF HOSPITAL CARE NOTE THE FOLLOWING DISCUSSION ON PAGE 144 OF THE HOUSE HEARINGS ON THE BILL WHICH BECAME THE CIVIL FUNCTIONS APPROPRIATIONS ACT, 1954:

MR. HAND. DO I UNDERSTAND THAT YOU SERVE A POPULATION--- MEDICAL HOSPITALS AND CLINICAL CARE--- OF APPROXIMATELY 50,000?

GOVERNOR SEYBOLD. YES.

MR. HAND. WHAT TREATY OBLIGATIONS DO WE HAVE, IF ANY, WITH RESPECT TO THE PERSONS IN THE REPUBLIC OF PANAMA?

GOVERNOR SEYBOLD. WELL, OF COURSE, WE TAKE CARE OF EMPLOYEES OF THE AMERICAN GOVERNMENT IN THE PANAMA AREA, THE DEPARTMENT OF STATE AND THE POINT 4 GROUP. AND WE ALSO TAKE CARE OF ANY PATIENTS THAT ARE SENT TO US WITH REQUEST BY THE FOREIGN SECRETARY OF THE REPUBLIC, AND UNLESS THEY HAVE THAT THEY ARE NOT ADMITTED; AND THEN THE LOCAL-RATE EMPLOYEES WHO DO NOT LIVE IN THE ZONE.

MR. HAND. WHO DO NOT LIVE IN THE ZONE?

GOVERNOR SEYBOLD. BUT WHO ARE EMPLOYED.

MR. HAND. BUT YOU HAVE NO MEDICAL OBLIGATION, GENERALLY, WITH RESPECT TO THE CITIZENS OF THE REPUBLIC OF PANAMA?

GOVERNOR SEYBOLD. NOT MEDICAL; WE HAVE THE HEALTH SERVICE IN PANAMA.

THIS DISCUSSION MAKES IT OBVIOUS THAT PRIOR TO ENACTMENT OF SECTION 105 THE CANAL ZONE GOVERNMENT FURNISHED HOSPITAL CARE TO CITIZENS OF THE UNITED STATES EMPLOYED BY THE GOVERNMENT IN THE PANAMA AREA AND LOCAL-RATE EMPLOYEES EMPLOYED IN THE CANAL ZONE BUT RESIDING IN PANAMA.

THE LEGISLATIVE HISTORY OF SECTION 105, AS AMENDED, FURTHER DISCLOSES THAT THE CONGRESS WAS CONCERNED THAT THE UNRECOVERED COSTS OF HOSPITAL AND MEDICAL CARE (AS WELL AS EDUCATIONAL SERVICES) WERE BEING BORNE BY THE CANAL ZONE GOVERNMENT AND ENACTED THE SECTION IN QUESTION FOR THE EXPRESS PURPOSE OF CORRECTING THE EXTENT OF SUBSIDIZATION OF OTHER GOVERNMENT AGENCIES BY THE CANAL ZONE GOVERNMENT WITH RESPECT TO THE FURNISHING OF THE INDICATED SERVICES TO EMPLOYEES OF THESE AGENCIES AND THEIR DEPENDENTS. IN THIS CONNECTION NOTE THE FOLLOWING FROM S.REPT. NO. 1373, 83D CONG., 2D SESS, AT PAGE 25:

IT IS THE DESIRE OF THE COMMITTEE THAT PATIENTS IN CANAL ZONE HOSPITALS, EXCEPT CHARITY PATIENTS, PAY APPROPRIATE CHARGES FOR HOSPITAL CARE, UNLESS OTHERWISE EXPRESSLY PROVIDED BY LAW. THE CANAL ZONE GOVERNMENT IS AUTHORIZED TO ESTABLISH APPROPRIATE CHARGES PAYABLE BY THE INDIVIDUAL. SPECIFIC LANGUAGE IS RECOMMENDED TO PERMIT THE DEPARTMENT OF DEFENSE TO REIMBURSE THE CANAL ZONE GOVERNMENT FOR THE COST OF HOSPITAL CARE PROVIDED DEPENDENTS OF MILITARY PERSONNEL FOR THE SERVICES THEY WOULD NORMALLY BE FURNISHED AT MILITARY HOSPITALS IN THE UNITED STATES.

WITH RESPECT TO SCHOOLS IT IS THE INTENT OF THE COMMITTEE THAT THE PRINCIPLE OF FREE EDUCATION IN GRADES 1 THROUGH 12 WILL EXTEND TO RESIDENTS OF THE CANAL ZONE AND TO UNITED STATES CITIZEN PERSONNEL OF GOVERNMENT AGENCIES RESIDENT IN THE REPUBLIC OF PANAMA. PARENTS DESIRING TO SEND THEIR CHILDREN TO KINDERGARTEN OR JUNIOR COLLEGE SHOULD PAY A REASONABLE TUITION.

IT IS RECOGNIZED THAT SCHOOLS AND HOSPITALS CANNOT BE OPERATED ON CHARGES MADE TO INDIVIDUALS FOR SERVICES RENDERED, IF THOSE CHARGES ARE TO BE WITHIN THE REACH OF THE AVERAGE CITIZEN. NORMALLY ADDITIONAL SUPPORT FROM TAXES OR OTHER TYPES OF INDIRECT CHARGES AND PRIVATE DONATIONS INCLUDING COMMUNITY CHESTS, IS NECESSARY TO CARRY ON THESE ACTIVITIES.

IN THE PAST UNRECOVERED COSTS OF THESE ACTIVITIES HAVE BEEN PAID BY THE PANAMA CANAL COMPANY. THE COMMITTEE BELIEVES THAT THESE UNRECOVERED COSTS SHOULD BE SHARED BY THE OTHER GOVERNMENT AGENCIES OPERATING IN THE CANAL ZONE. THE COMMITTEE IS THEREFORE RECOMMENDING THE REVISION OF SECTION 105 OF THE 1954 CIVIL FUNCTIONS APPROPRIATION ACT TO PROVIDE FOR THE DISTRIBUTION OF THE UNRECOVERED COSTS AMONG THE USING AGENCIES. * * *.

FROM THE FOREGOING IT IS CLEAR THAT THE CONGRESS IN CONSIDERING SECTION 105 OF THE 1954 ACT AND SECTION 107 OF THE 1955 ACT WAS AWARE THAT HOSPITAL AND MEDICAL SERVICES HAD BEEN FURNISHED TO EMPLOYEES OF GOVERNMENT AGENCIES AND THEIR DEPENDENTS WHO WERE LOCATED IN THE CANAL ZONE OR IN THE REPUBLIC OF PANAMA, I.E., IN AN AREA CONTIGUOUS TO THE CANAL ZONE; AND THAT FREE PRIMARY AND SECONDARY EDUCATION WAS FURNISHED ALL RESIDENTS OF THE CANAL ZONE AND UNITED STATES CITIZEN EMPLOYEES RESIDING IN THE REPUBLIC OF PANAMA. IT IS ALSO CLEAR THAT THE CONGRESS INTENDED THE UNRECOVERED COSTS OF SUCH SERVICES BE PAID BY THE EMPLOYING AGENCY.

FURTHER, WHILE WE FOUND NO STATUTE WHICH REQUIRES THE CANAL ZONE GOVERNMENT TO FURNISH HOSPITAL CARE TO FEDERAL EMPLOYEES WHO ARE STATIONED IN THE REPUBLIC OF PANAMA, NEITHER DID WE FIND A STATUTE WHICH PROHIBITS THE CANAL ZONE GOVERNMENT FROM FURNISHING SUCH CARE TO THESE FEDERAL EMPLOYEES. THEREFORE, AND IN LIGHT OF THE LEGISLATIVE HISTORY OF SECTION 105, AS AMENDED, IT IS OUR VIEW THAT IF THE CANAL ZONE GOVERNMENT FURNISHES HOSPITAL CARE TO FEDERAL EMPLOYEES (OR THEIR DEPENDENTS) STATIONED IN THE CANAL ZONE OR IN THE REPUBLIC OF PANAMA, THE EMPLOYING AGENCY IS REQUIRED TO REIMBURSE THE CANAL ZONE GOVERNMENT FOR THE COSTS INCURRED OVER AND ABOVE THOSE CHARGEABLE TO THE EMPLOYEES (OR THEIR DEPENDENTS). THE ENTITLEMENT OF THE EMPLOYEES OR THEIR DEPENDENTS TO HOSPITAL AND MEDICAL CARE AT GOVERNMENT EXPENSE UNDER OTHER LAWS IS NOT INVOLVED, NOR IS IT MATERIAL THAT THE EMPLOYING AGENCY HAS NOT AUTHORIZED OR APPROVED THE FURNISHING OF SUCH CARE. SEE 38 COMP. GEN. 408; CF. B- 146003, JUNE 14, 1961. OF COURSE, SINCE THE CANAL ZONE GOVERNMENT IS NOT REQUIRED BY LAW TO FURNISH HOSPITAL CARE TO FEDERAL EMPLOYEES STATIONED IN THE REPUBLIC OF PANAMA IT COULD REFUSE TO DO SO UNLESS THE EMPLOYING AGENCY AUTHORIZED SUCH CARE.

ADMITTEDLY, THE LANGUAGE OF SECTION 105, AS AMENDED, IN AND OF ITSELF, DOES NOT EXPRESSLY LIMIT THE REIMBURSEMENT OBLIGATIONS CONTAINED THEREIN TO EMPLOYEES STATIONED IN THE CANAL ZONE OR THE REPUBLIC OF PANAMA. HOWEVER, THERE IS NOTHING IN THE LEGISLATIVE HISTORY OF SECTION 105, AS AMENDED, TO INDICATE THAT THE SECTION WAS INTENDED TO APPLY TO FEDERAL EMPLOYEES NOT STATIONED IN OR RESIDING IN THE CANAL ZONE OR THE REPUBLIC OF PANAMA. THAT IS TO SAY, THE LEGISLATIVE HISTORY DOES NOT INDICATE THAT THE CONGRESS WAS ADVISED THAT HOSPITAL CARE WAS BEING FURNISHED BY THE CANAL ZONE GOVERNMENT TO FEDERAL EMPLOYEES STATIONED OUTSIDE THE CANAL ZONE OR THE REPUBLIC OF PANAMA. IN ANY EVENT, AS WE STATED IN B-124786, JANUARY 18, 1956, IT APPEARS TO HAVE BEEN THE INTENT OF CONGRESS THAT THE CANAL ZONE GOVERNMENT SHOULD NOT ABSORB ANY PART OF THE COST OF PROVIDING EDUCATION AND MEDICAL AND HOSPITAL SERVICES TO INDIVIDUALS WHOSE PRESENCE IN THE CANAL ZONE RESULTS FROM SERVICE IN OR EMPLOYMENT BY OTHER GOVERNMENT AGENCIES OR INSTRUMENTALITIES. OBVIOUSLY, WHEN A FEDERAL EMPLOYEE'S PRESENCE IN THE CANAL ZONE, OR IN PANAMA, IS NOT RELATED TO THE OFFICIAL ACTIVITIES OF THE DEPARTMENT OR AGENCY BY WHICH HE IS EMPLOYED, BUT RATHER IS ATTRIBUTABLE SOLELY TO PERSONAL REASONS (FOR EXAMPLE, HOSPITALIZATION), IT MAY NOT BE SAID THAT THE EMPLOYEE'S PRESENCE IN THE CANAL ZONE OR PANAMA RESULTS FROM SERVICE IN OR EMPLOYMENT BY A FEDERAL AGENCY. ACCORDINGLY, IT IS OUR VIEW THAT SECTION 105, AS AMENDED, IS NOT APPLICABLE TO EMPLOYEES WHO ARE STATIONED OUTSIDE OF THE CANAL ZONE OR THE REPUBLIC OF PANAMA, EXCEPT WHEN SUCH EMPLOYEES ARE IN THE CANAL ZONE OR IN PANAMA INCIDENT TO THE OFFICIAL ACTIVITIES OF THE DEPARTMENT OR AGENCY BY WHICH THEY ARE EMPLOYED. HENCE, UNDER SECTION 105, AS AMENDED, A FEDERAL AGENCY WOULD NOT BE REQUIRED TO REIMBURSE THE CANAL ZONE GOVERNMENT FOR HOSPITAL CARE FURNISHED AN EMPLOYEE STATIONED OUTSIDE THE CANAL ZONE, UNLESS THE EMPLOYEE CAME WITHIN THE EXCEPTION MENTIONED ABOVE.

CONCERNING THE CITIZENSHIP OF THE EMPLOYEES, IT IS IMMATERIAL UNDER SECTION 105, AS AMENDED, WHETHER THE EMPLOYEES FURNISHED THE HOSPITAL CARE ARE LOCAL EMPLOYEES OR CITIZENS OF THE UNITED STATES. AS WE STATED IN B- 146003, JUNE 14, 1961 "THE PROVISIONS OF SUCH SECTION MAKE NO DISTINCTION BETWEEN LOCAL EMPLOYEES AND EMPLOYEES WHO ARE CITIZENS OF THE UNITED STATES NOR DO WE FIND ANYTHING IN THE LEGISLATIVE HISTORY THEREOF WHICH INDICATES THAT THE CONGRESS INTENDED THAT ANY SUCH DISTINCTION SHOULD BE MADE. HENCE, WE HELD, IN EFFECT, THAT UNDER SECTION 105, AS AMENDED, THE FEDERAL AGENCY INVOLVED WAS REQUIRED TO REIMBURSE THE CANAL ZONE GOVERNMENT FOR THE UNRECOVERED COST OF HOSPITAL CARE FURNISHED A PANAMANIAN NATIONAL EMPLOYED BY THE AGENCY IN PANAMA, IN THE ABSENCE OF A STATUTORY PROVISION PRECLUDING THE USE OF THE AGENCY'S APPROPRIATIONS FOR SUCH PURPOSE. WE SEE NO REASON FOR MODIFYING THAT DECISION.

CONCERNING RECOVERY BY YOUR DEPARTMENT FROM ITS EMPLOYEES AND THEIR DEPENDENTS AMOUNTS THE DEPARTMENT IS REQUIRED UNDER SECTION 105, AS AMENDED, TO REIMBURSE THE CANAL ZONE GOVERNMENT FOR HOSPITAL CARE FURNISHED THE EMPLOYEES OR THEIR DEPENDENTS, THE MATTER IS SIMILAR TO THAT CONSIDERED IN 34 COMP. GEN. 510. IN THAT CASE THE SECRETARY OF COMMERCE ASKED WHETHER THE CIVIL AERONAUTICS ADMINISTRATION MAY DETERMINE THAT EMPLOYEES OF THE ADMINISTRATION WHO ARE FURNISHED EDUCATION, HOSPITAL AND MEDICAL SERVICES FOR THEMSELVES AND DEPENDENTS BY THE CANAL ZONE GOVERNMENT SHALL PAY ALL OF THE COST INCURRED, OR A HIGHER AMOUNT THAN THAT CHARGED THEM BY THE CANAL ZONE GOVERNMENT, WITH THE ADMINISTRATION'S SHARE BEING CORRESPONDINGLY REDUCED.

AFTER REVIEWING THE LEGISLATIVE HISTORY OF SECTION 105 OF THE CIVIL FUNCTIONS APPROPRIATIONS ACT, 1954, AS AMENDED, WE STATED---

IN VIEW OF THE CLEAR PROVISIONS OF THE STATUTE AND THE ABOVE EXPLANATION, IT IS OUR VIEW THAT THE CONGRESS CLEARLY INTENDED THAT EMPLOYEES OF THE VARIOUS DEPARTMENTS AND AGENCIES EMPLOYED IN THE CANAL ZONE SHALL BE REQUIRED TO PAY ONLY THE CHARGES ESTABLISHED FOR EDUCATION AND MEDICAL SERVICES BY THE CANAL ZONE GOVERNMENT, AND THAT ALL OF THE COSTS OF SUCH SERVICES NOT SO RECOVERED MUST BE BORNE BY THE EMPLOYING AGENCY INVOLVED.

ACCORDINGLY, THE CIVIL AERONAUTICS ADMINISTRATION, IN OUR OPINION, HAS NO DISCRETION AS TO THE AMOUNT OF THE CHARGES ITS EMPLOYEES ARE REQUIRED TO PAY.

FOR THE REASONS STATED IN 34 COMP. GEN. 510, YOUR DEPARTMENT MAY NOT RECOVER FROM ITS EMPLOYEES AND DEPENDENTS AMOUNTS PAID BY YOUR DEPARTMENT TO THE CANAL ZONE GOVERNMENT PURSUANT TO SECTION 105, AS AMENDED, FOR HOSPITAL CARE FURNISHED TO THE EMPLOYEES OR THEIR DEPENDENTS.

IN VIEW OF WHAT IS STATED IN THE PRECEDING PARAGRAPH, IT IS NOT NECESSARY TO ANSWER THE QUESTION CONCERNING THE DEPOSIT OF MONIES COLLECTED FROM THE EMPLOYEES AND DEPENDENTS.