Making appropriations for foreign assistance to Israel for fiscal year 2010.

Summary: Israel Foreign Assistance Appropriations Act, 2010 - Appropriates FY2010 funds for Israel for: (1) refugee resettlement; and (2) foreign military credit sales.

Conditions the availability of: (1) FY2010 appropriations for a voluntary contribution to the International Atomic Energy Agency (IAEA) upon a determination by the Secretary of State that Israel is not being denied IAEA participation; and (2) certain appropriations to support a Palestinian state upon a determination by the Secretary that the Palestinian governing entity has demonstrated a commitment to peaceful co-existence with Israel and is taking appropriate counterterrorism measures.

Expresses the sense of Congress against the Arab League boycott of Israel.

Prohibits the expenditure of specified funds to create in any part of Jerusalem a new government office of any U.S. department or agency for the purpose of conducting official U.S. business with the Palestinian Authority (PA) or successor governing entity over Gaza and Jericho.

That the following sums 
are appropriated, out of any money in the Treasury not otherwise 
appropriated, for the fiscal year ending September 30, 2010, and for 
other purposes, namely:

                                TITLE I

                     BILATERAL ECONOMIC ASSISTANCE

                          Department of State

    nonproliferation, anti-terrorism, demining and related programs

    Funds appropriated for fiscal year 2010 for a voluntary 
contribution to the International Atomic Energy Agency under section 
301 of the Foreign Assistance Act of 1961 may be made available to that 
Agency only if the Secretary of State determines (and so reports to the 
Congress) that Israel is not being denied its right to participate in 
the activities of that Agency.

                    migration and refugee assistance

    For necessary expenses to enable the Secretary of State to provide, 
as authorized by law, not less than $25,000,000 for refugees resettling 
in Israel, to remain available until expended.

                                TITLE II

                   INTERNATIONAL SECURITY ASSISTANCE

                  Funds Appropriated to the President

                   foreign military financing program

    For necessary expenses for grants only for Israel to enable the 
President to carry out the provisions of section 23 of the Arms Export 
Control Act, $2,220,000,000: Provided, That to expedite the provision 
of assistance to Israel, the Secretary of State may use the funds 
appropriated under this heading to procure defense articles and 
services to enhance the capacity of Israel's security forces: Provided 
further, That the Department of State shall consult with the Committees 
on Appropriations prior to exercising the authority contained in the 
previous proviso: Provided further, That the funds appropriated by this 
paragraph for Israel shall be disbursed within 30 days of the enactment 
of this Act: Provided further, That to the extent that the Government 
of Israel requests that funds be used for such purposes, grants made 
available for Israel by this paragraph shall, as agreed by the United 
States and Israel, be available for advanced weapons systems, of which 
not less than $583,860,000 shall be available for the procurement in 
Israel of defense articles and defense services, including research and 
development: Provided further, That funds appropriated or otherwise 
made available by this paragraph shall be non-repayable notwithstanding 
any requirement in section 23 of the Arms Export Control Act: Provided 
further, That funds made available under this paragraph shall be 
obligated upon apportionment in accordance with paragraph (5)(C) of 
title 31, United States Code, section 1501(a): Provided further, That 
none of the funds made available under this paragraph, except those 
specified in the fourth proviso under this heading, shall be available 
to finance the procurement of defense articles, defense services, or 
design and construction services that are not sold by the United States 
Government under the Arms Export Control Act unless Israel has first 
signed an agreement with the United States Government specifying the 
conditions under which such procurements may be financed with such 
funds: Provided further, That all country and funding level increases 
in allocations shall be submitted through the regular notification 
procedures of section 7015 of the Department of State, Foreign 
Operations, and Related Programs Appropriations Act, 2010: Provided 
further, That funds made available in this paragraph may be used, 
notwithstanding any other provision of law, for demining, the clearance 
of unexploded ordnance, and related activities, and may include 
activities implemented through nongovernmental and international 
organizations: Provided further, That funds appropriated in this 
paragraph shall be expended at the minimum rate necessary to make 
timely payment for defense articles and services.

                               TITLE III

                           GENERAL PROVISIONS

                         availability of funds

    Sec. 301. No part of any appropriation contained in this Act shall 
remain available for obligation after the expiration of the current 
fiscal year unless expressly so provided in this Act: Provided, That 
funds appropriated for the purposes of chapters 1, 8, 11, and 12 of 
part I, section 661, section 667, chapters 4, 5, 6, 8, and 9 of part II 
of the Foreign Assistance Act of 1961, section 23 of the Arms Export 
Control Act shall remain available for an additional 4 years from the 
date on which the availability of such funds would otherwise have 
expired, if such funds are initially obligated before the expiration of 
their respective periods of availability contained in this Act: 
Provided further, That, notwithstanding any other provision of this 
Act, any funds made available for the purposes of chapter 1 of part I 
and chapter 4 of part II of the Foreign Assistance Act of 1961 which 
are allocated or obligated for cash disbursements in order to address 
balance of payments or economic policy reform objectives, shall remain 
available until expended.

                  applicability of general limitations

    Sec. 302. The pertinent limitations and restrictions on the 
availability and use of funds set forth in the Department of State, 
Foreign Operations, and Related Programs Appropriations Act, 2010 shall 
apply to the appropriations provided in this Act.

                     arab league boycott of israel

    Sec. 303. It is the sense of the Congress that--
            (1) the Arab League boycott of Israel, and the secondary 
        boycott of American firms that have commercial ties with 
        Israel, is an impediment to peace in the region and to United 
        States investment and trade in the Middle East and North 
        Africa;
            (2) the Arab League boycott, which was regrettably 
        reinstated in 1997, should be immediately and publicly 
        terminated, and the Central Office for the Boycott of Israel 
        immediately disbanded;
            (3) all Arab League states should normalize relations with 
        their neighbor Israel;
            (4) the President and the Secretary of State should 
        continue to vigorously oppose the Arab League boycott of Israel 
        and find concrete steps to demonstrate that opposition by, for 
        example, taking into consideration the participation of any 
        recipient country in the boycott when determining to sell 
        weapons to said country; and
            (5) the President should report to Congress annually on 
        specific steps being taken by the United States to encourage 
        Arab League states to normalize their relations with Israel to 
        bring about the termination of the Arab League boycott of 
        Israel, including those to encourage allies and trading 
        partners of the United States to enact laws prohibiting 
        businesses from complying with the boycott and penalizing 
        businesses that do comply.

                         palestinian statehood

    Sec. 304.  (a) Limitation on Assistance.--None of the funds 
appropriated under this Act, or under titles III through VI of the 
Department of State, Foreign Operations, and Related Programs 
Appropriations Act, 2010, may be provided to support a Palestinian 
state unless the Secretary of State determines and certifies to the 
appropriate congressional committees that--
            (1) the governing entity of a new Palestinian state--
                    (A) has demonstrated a firm commitment to peaceful 
                co-existence with the State of Israel;
                    (B) is taking appropriate measures to counter 
                terrorism and terrorist financing in the West Bank and 
                Gaza, including the dismantling of terrorist 
                infrastructures, and is cooperating with appropriate 
                Israeli and other appropriate security organizations; 
                and
            (2) the Palestinian Authority (or the governing entity of a 
        new Palestinian state) is working with other countries in the 
        region to vigorously pursue efforts to establish a just, 
        lasting, and comprehensive peace in the Middle East that will 
        enable Israel and an independent Palestinian state to exist 
        within the context of full and normal relationships, which 
        should include--
                    (A) termination of all claims or states of 
                belligerency;
                    (B) respect for and acknowledgment of the 
                sovereignty, territorial integrity, and political 
                independence of every state in the area through 
                measures including the establishment of demilitarized 
                zones;
                    (C) their right to live in peace within secure and 
                recognized boundaries free from threats or acts of 
                force;
                    (D) freedom of navigation through international 
                waterways in the area; and
                    (E) a framework for achieving a just settlement of 
                the refugee problem.
    (b) Sense of Congress.--It is the sense of Congress that the 
governing entity should enact a constitution assuring the rule of law, 
an independent judiciary, and respect for human rights for its 
citizens, and should enact other laws and regulations assuring 
transparent and accountable governance.
    (c) Waiver.--The President may waive subsection (a) if he 
determines that it is important to the national security interests of 
the United States to do so.
    (d) Exemption.--The restriction in subsection (a) shall not apply 
to assistance intended to help reform the Palestinian Authority and 
affiliated institutions, or the governing entity, in order to help meet 
the requirements of subsection (a), consistent with the provisions of 
section 7040 of the Department of State, Foreign Operations, and 
Related Programs Appropriations Act, 2010 (``Limitation on Assistance 
to the Palestinian Authority'').

           restrictions concerning the palestinian authority

    Sec. 305. None of the funds appropriated under this Act, or under 
titles II through VI of the Department of State, Foreign Operations, 
and Related Programs Appropriations Act, 2010, may be obligated or 
expended to create in any part of Jerusalem a new office of any 
department or agency of the United States Government for the purpose of 
conducting official United States Government business with the 
Palestinian Authority over Gaza and Jericho or any successor 
Palestinian governing entity provided for in the Israel-PLO Declaration 
of Principles: Provided, That this restriction shall not apply to the 
acquisition of additional space for the existing Consulate General in 
Jerusalem: Provided further, That meetings between officers and 
employees of the United States and officials of the Palestinian 
Authority, or any successor Palestinian governing entity provided for 
in the Israel-PLO Declaration of Principles, for the purpose of 
conducting official United States Government business with such 
authority should continue to take place in locations other than 
Jerusalem. As has been true in the past, officers and employees of the 
United States Government may continue to meet in Jerusalem on other 
subjects with Palestinians (including those who now occupy positions in 
the Palestinian Authority), have social contacts, and have incidental 
discussions.
     This Act may be cited as the ``Israel Foreign Assistance 
Appropriations Act, 2010''.