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# Legislative Bulletin..............................................May 22, 2006

**Contents:**

**H.R. 4681**---Palestinian Anti-Terrorism Act **(REVISED)**

H.R. 4681---Palestinian Anti-Terrorism Act---*as amended for floor
consideration*

(Ros-Lehtinen, R-FL)

**[Order of Business]{.underline}**: The bill is scheduled to be
considered after votes on Monday, May 22^nd^, under a motion to suspend
the rules and pass the bill. The recorded vote, if requested, will be
rolled to tomorrow, Tuesday, May 23^rd^.

**[Summary (as amended thus far for floor consideration---major changes
from reported version in red-bold below)]{.underline}**:

Highlights of the bill are as follows:

-   Declares that it is the policy of the United States to:

> \--"support a peaceful, two-state solution to end the conflict between
> Israel and the Palestinians in accordance with the Performance-Based
> Roadmap to a Permanent Two-State Solution to the Israeli-Palestinian
> Conflict (commonly referred to as the 'Roadmap');
>
> \--"oppose those organizations, individuals, and countries that
> support terrorism and violence;
>
> \--"urge members of the international community to avoid contact with
> and refrain from financially supporting the terrorist organization
> Hamas or a Hamas-controlled Palestinian Authority until Hamas agrees
> to recognize Israel, renounce violence, disarm, and accept prior
> agreements, including the Roadmap;
>
> \--"promote the emergence of a democratic Palestinian governing
> authority that\--
>
> \(A\) denounces and combats terrorism;
>
> \(B\) has agreed to and is taking action to disarm and dismantle any
> terrorist agency, network, or facility;
>
> \(C\) has agreed to work to eliminate anti-Israel and anti-Semitic
> incitement and the commemoration of terrorists in Palestinian society;
>
> \(D\) has agreed to respect the sovereignty of its neighbors;
>
> \(E\) acknowledges, respects, and upholds the human rights of all
> people;
>
> \(F\) implements the rule of law, good governance, and democratic
> practices, including conducting free, fair, and transparent elections
> in compliance with international standards;
>
> \(G\) ensures institutional and financial transparency and
> accountability; and
>
> \(H\) has agreed to recognize the State of Israel as an independent,
> sovereign, Jewish, democratic state; and
>
> \--"continue to support assistance to the Palestinian people."

-   Conditions future U.S. assistance to the Palestinian Authority on
    the U.S. President certifying that:

> \--"no ministry, agency, or instrumentality of the Palestinian
> Authority is controlled by a foreign terrorist organization and no
> member of a foreign terrorist organization serves in a senior policy
> making position in a ministry, agency, or instrumentality of the
> Palestinian Authority;

\--"the Palestinian Authority has

> \(A\) publicly acknowledged Israel's right to exist as a Jewish state;
> and
>
> \(B\) recommitted itself and is adhering to all previous agreements
> and understandings by the Palestine Liberation Organization and the
> Palestinian Authority with the Government of the United States, the
> Government of Israel, and the international community, including
> agreements and understandings pursuant to the Performance-Based
> Roadmap to a Permanent Two-State Solution to the Israeli-Palestinian
> Conflict (commonly referred to as the 'Roadmap'); and
>
> \--"the Palestinian Authority has taken effective steps and made
> demonstrable progress toward
>
> \(A\) completing the process of purging from its security services
> individuals with ties to terrorism;
>
> \(B\) dismantling all terrorist infrastructure, confiscating
> unauthorized weapons, arresting and bringing terrorists to justice,
> destroying unauthorized arms factories, thwarting and preempting
> terrorist attacks, and fully cooperating with Israel's security
> services;
>
> \(C\) halting all anti-Israel incitement in Palestinian
> Authority-controlled electronic and print media and in schools,
> mosques, and other institutions it controls, and replacing these
> materials, including textbooks, with materials that promote tolerance,
> peace, and coexistence with Israel;
>
> \(D\) ensuring democracy, the rule of law, and an independent
> judiciary, and adopting other reforms such as ensuring transparent and
> accountable governance; and
>
> \(E\) ensuring the financial transparency and accountability of all
> government ministries and operations."

-   Requires (every six months) presidential recertifications that these
    conditions are being met.

-   Provides the following exceptions to the Palestinian Authority
    funding limitations:

> \--assistance to independent election commissions (subject to
> presidential certification that each such commission has no terrorist
> ties); and
>
> \--assistance for the security detail of the Palestinian president,
> and non-security expenses, to support the Israeli-Palestinian peace
> negotiations (subject to presidential certification that the funds are
> essential for negotiations, will not be transferred to terrorist
> individuals, and that the Palestinian president is not himself
> affiliated with terrorists).

-   The exceptions would have to be made with advance congressional
    consultation and only if such assistance is "important to the
    national security interests of the United States."

-   Defines the Palestinian Authority to include "the interim
    Palestinian administrative organization that governs part of the
    West Bank and all of the Gaza Strip (or any successor Palestinian
    governing entity), including the Palestinian Legislative Council."

-   Directs the U.S. Comptroller General to report to Congress on how
    U.S. assistance to Palestinian Authority will be audited by the
    State Department, the U.S. Agency for International Development
    (USAID), and all other relevant departments and agencies of the U.S.
    Government.

-   Conditions future U.S. assistance to nongovernmental organizations
    (NGOs) serving the West Bank and Gaza Strip upon the presidential
    certification detailed above.

-   Provides the following exceptions to the NGO funding limitations:

> \--the provision of food, water, medicine, sanitation services, or
> other assistance to directly meet basic human health needs; and
>
> \--"other types of assistance," subject to presidential certification
> that such assistance "will further the national security interests of
> the United States" and advance consultation with Congress.

-   Provides for U.S. Comptroller General oversight of such NGO funding
    and directs the Secretary of State to take "all appropriate steps"
    to ensure that such NGO assistance is not provided to or through any
    individual or entity that the Secretary knows, or has reason to
    believe, advocates, plans, sponsors, engages in, or has engaged in,
    terrorist activity.

-   Prohibits the NGO funds from being used for recognizing or otherwise
    honoring individuals or the families of individuals who commit, or
    have committed, acts of terrorism.

-   Directs USAID to provide for independent audits of all funds to NGOs
    serving the West Bank and Gaza.

-   Requires the President to report to Congress on the
    Israeli-Palestinian balance inherent in the following United Nations
    (UN) entities:

> \--The United Nations Division for Palestinian Rights;
>
> \--The Committee on the Exercise of the Inalienable Rights of the
> Palestinian People;
>
> \--The United Nations Special Coordinator for the Middle East Peace
> Process and Personal Representative to the Palestine Liberation
> Organization and the Palestinian Authority;
>
> \--The NGO Network on the Question of Palestine;
>
> \--The Special Committee to Investigate Israeli Practices Affecting
> the Human Rights of the Palestinian People and Other Arabs of the
> Occupied Territories; and
>
> \--Any other entity the Secretary of State determines results in
> duplicative efforts or funding or fails to ensure balance in the
> approach to Israeli-Palestinian issues.

-   Instructs the United States Permanent Representative to the UN to
    use the "voice, vote, and influence" of the U.S. to seek the
    implementation at the UN of the recommendations contained in this
    report above, and authorizes the Secretary of State to withhold from
    U.S. contributions to the regular assessed UN biennial budget
    amounts proportional to the portion of such budget that is geared
    toward the above pro-Palestinian entities.

-   Also **directs \[was "authorizes"\]** the Secretary of State to
    withhold from U.S. contributions to the regular assessed UN biennial
    budget amounts **and any U.S. contributions to the voluntary UN
    budget** that are proportional **(for regular assessments) or equal
    to (for voluntary contributions)** to the portion of such budget
    that are expended for any UN-affiliated or specialized agency that
    provides assistance directly to the Palestinian Authority (during
    any period when the presidential certification above is not in
    effect **and subject to certain exceptions**).

-   Denies visas for officials of the Palestinian Authority (or any
    representative thereof) during any period when the presidential
    certification above is not in effect (subject to presidential waiver
    in individual cases that are "important to the national security
    interests of the United States" **or in connection with U.S.
    obligations under the United National Headquarters Agreement Act**).

-   Directs the President to restrict the travel of officials and
    representatives of the Palestinian Authority and of the Palestine
    Liberation Organization who are stationed at the UN in New York City
    to a 25-mile radius of the UN headquarters building during any
    period when the presidential certification above is not in effect.

-   Makes it illegal to establish or maintain an office, headquarters,
    premises, or other facilities or establishments within the
    jurisdiction of the United States at the behest or direction of, or
    with funds provided by, the Palestinian Authority or the Palestine
    Liberation Organization during any period when the presidential
    certification above is not in effect (enforced by the Justice
    Department and subject to a presidential "vital" national security
    waiver).

-   States that it shall be U.S. policy that the U.S. Executive Director
    at each international financial institution should use the "voice,
    vote, and influence" of the United States to prohibit assistance to
    the Palestinian Authority during any period when the presidential
    certification above is not in effect.

-   Expresses the policy of the United States that no officer or
    employee of the U.S. Government shall negotiate or have substantive
    contacts with members or official representatives of Hamas,
    Palestinian Islamic Jihad, the Popular Front for the Liberation of
    Palestine, al-Aqsa Martyrs Brigade, or any other Palestinian
    terrorist organization, unless and until such organization:

> \--recognizes Israel's right to exist;
>
> \--renounces the use of terrorism;
>
> \--dismantles the infrastructure necessary to carry out terrorist
> acts, including the disarming of militias and the elimination of all
> instruments of terror; and
>
> \--recognizes and accepts all previous agreements and understandings
> between the State of Israel and the Palestine Liberation Organization
> and the Palestinian Authority.

**[Additional Background]{.underline}**: The United States has provided
hundreds of millions of dollars in assistance to the Palestinian over
the last 13 years or so, most of which was indirect aid. In just the
last two years, the U.S. gave no less than \$425 million in assistance
to the Palestinian government, Palestinian nongovernmental
organizations, and non-Palestinian-based contractors or grantees of
USAID.

Hamas has long been known as a terrorist organization that proudly takes
credit for the murders of innocent Israelis, Americans, and
non-combatants of dozens of other nations. In January 2006, Hamas won a
significant majority of seats in the Palestinian legislature.

In February 2006, Congress passed S.Con.Res. 79 (by unanimous consent in
the Senate and by 418-1 in the House:
<http://clerk.house.gov/evs/2006/roll010.xml>), expressing a sense of
Congress that no United States assistance should be provided directly to
the Palestinian Authority if any representative political party holding
a majority of parliamentary seats within it maintains a position calling
for the destruction of Israel.

Hamas, the Arabic acronym for the "Islamic Resistance Movement," has
openly and repeatedly called for the destruction of Israel and the
creation of "Palestine" as an Islamic state.

**[Committee Action]{.underline}**: On February 1, 2006, H.R. 4681 was
referred to the International Relations Committee, the Judiciary
Committee, and the Financial Services Committee. On April 6, 2006, the
International Relations Committee marked up and ordered the bill
reported to the full House by a vote of 36-2. On May 10, 2006, the
Judiciary Committee marked up and ordered the bill reported to the full
House by voice vote. The Financial Services Committee took no official
action on the bill.

**[Administration Position]{.underline}**: Reports indicate that the
Administration believes this bill to be too restrictive on the Executive
Branch's role in foreign policy.

**[Cost to Taxpayers]{.underline}**: CBO confirms that this bill would
not directly impact the federal budget (though it could result in
decreased spending subject to appropriation in future years).

**[Does the Bill Expand the Size and Scope of the Federal
Government?]{.underline}**: No.

**[Does the Bill Contain Any New State-Government, Local-Government, or
Private-Sector Mandates?]{.underline}**: No.

**[Constitutional Authority]{.underline}**: The International Relations
Committee and the Judiciary Committee, in House Report 109-462 (Parts I
and II), each cite constitutional authority in Article I, Section 8, but
fail to cite a specific clause. House Rule XIII, Section 3(d)(1),
requires that all committee reports contain "a statement citing the
*specific* *powers* granted to Congress in the Constitution to enact the
law proposed by the bill or joint resolution." *\[emphasis added\]*

**[Outside Organizations]{.underline}**: The Republican Jewish Coalition
and the American Israel Public Affairs Committee are strongly supporting
the legislation. Americans for Peace Now, the U.S. Conference of
Catholic Bishops, and Churches for Middle East Peace are opposing the
legislation (because of the bill's restrictions on U.S. assistance to
and through NGOs).

**[RSC Staff Contact]{.underline}**: Paul S. Teller,
<paul.teller@mail.house.gov>, (202) 226-9718