A bill to amend the Panama Canal Act of 1979, and for other purposes.

Amends the Panama Canal Act of 1979 to permit the President or Secretary of Defense to delegate to another U.S. official the authority vested in them by such Act. Prohibits further delegation of such authority.

Authorizes payment of a housing allowance in lieu of specified additional compensation available for certain Federal employees in the Panama Canal Zone.

Amends the provisions relating to hours of work for Federal employees to make Good Friday and November 3, Panamanian Independence Day, legal public holidays for Panama Canal Commission employees who are stationed in the Republic of Panama.

Makes the Panama Canal Zone a foreign area for purposes of overseas differentials and allowances for Federal employees.

Amends the Panama Canal Act of 1979 to retain the minimum annual pay increase for certain Federal employees stationed in the Republic of Panama.

Authorizes the use of regulations issued pursuant to the Accounting and Auditing Act of 1950 to provide for the depreciation of certain Canal assets that need replacement.

Revises the provisions requiring an annual audit of the Commission's financial transactions by the U.S. Comptroller General.

Provides for collection of amounts payable for certain reimburseable services. Requires specific congressional approval for spending or obligating U.S. tax revenues to implement the Panama Canal Treaty after the effective date of this Act. Deletes the provision for Federal payment of the costs of transferring the remains of U.S. dead from a cemetery in Panama to the United States.

Adds to the costs that must be covered by tolls collected on the Canal: (1) the cost of reimbursing the Treasury for providing educational, health, and other services to the Commission, its employees and their dependents; and (2) any costs that are incurred in implementing the Panama Canal Treaty of 1977 and associated with maintaining the Canal.

Authorizes the President to regulate swimming in the Canal.

Transfers, on April 1, 1982, jurisdiction over all actions that originated in the U.S. District Court for the District of the Canal Zone to the U.S. District Court for the Eastern District of Louisiana.

Grants original jurisidiction to U.S. district courts over all new Federal offenses committed in the Republic of Panama by a U.S. citizen employee of the Commission, a member of the civilian component, or specified dependents. Requires prosecution of such new offenses to be brought in the U.S. District Court for the Eastern District of Louisiana. Sets forth the criminal law which applies within the Republic of Panama to U.S. citizen employees of the Commission, members of the U.S. military and civilian forces, and their dependents.

Repeals the Panama Canal Code, a specified provision of the Federal Criminal Code relating to the Panama Canal, and specified sections of the Panama Canal Act of 1979.