SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Bonuses for Terrorists Act''.

SEC. 2. LIMITATIONS ON ASSISTANCE TO THE PALESTINIAN AUTHORITY AND THE 
              PALESTINE LIBERATION ORGANIZATION.

    Chapter 1 of part III of the Foreign Assistance Act of 1961 (22 
U.S.C. 2351 et seq.) is amended by adding at the end the following new 
section:

``SEC. 620N. LIMITATIONS ON ASSISTANCE TO THE PALESTINIAN AUTHORITY AND 
              THE PALESTINE LIBERATION ORGANIZATION.

    ``(a) Limitations.--
            ``(1) Palestinian authority.--In addition to the limitation 
        on assistance to the Palestinian Authority described in 
        sections 620K and 620L, assistance may be provided under this 
        Act to the Palestinian Authority only during a period for which 
        a certification described in subsection (b) is in effect.
            ``(2) Palestine liberation organization.--Assistance may be 
        provided under this Act to the Palestine Liberation 
        Organization only during a period for which a certification 
        described in subsection (b) is in effect.
    ``(b) Certification.--A certification described in paragraphs (1) 
and (2) of subsection (a) is a certification submitted by the Secretary 
of State to Congress that contains a determination of the Secretary 
that the Palestinian Authority, including any ministry, agency, or 
instrumentality or any official acting on behalf of any such ministry, 
agency, or instrumentality, and the Palestine Liberation Organization, 
as the case may be, has ceased the payment of any bonuses, financial 
compensation, or any other benefit not generally or otherwise available 
to the Palestinian population at large to the families of Palestinians 
killed in connection with--
            ``(1) conspiring to commit an act of terrorism; or
            ``(2) the commission of an act of terrorism.
    ``(c) Recertifications.--Not later than 90 days after the date on 
which the Secretary of State submits to Congress an initial 
certification under subsection (b) and every six months thereafter--
            ``(1) the Secretary shall submit to Congress a 
        recertification that the conditions described in subsection (b) 
        are continuing to be met; or
            ``(2) if the Secretary is unable to make such a 
        recertification, the Secretary shall submit to Congress a 
        report that contains the reasons therefor.
    ``(d) Congressional Notification.--Assistance made available under 
this Act to the Palestinian Authority or the Palestine Liberation 
Organization may not be provided until 15 days after the date on which 
the Secretary of State has provided notice thereof to the appropriate 
congressional committees in accordance with the procedures applicable 
to reprogramming notifications under section 634A(a).
    ``(e) Availability of Funds for Iron Dome.--If the Secretary of 
State is unable to submit a certification to Congress under subsection 
(b) or a recertification under subsection (c), funds made available 
under this Act for assistance to the Palestinian Authority and the 
Palestine Liberation Organization that otherwise would have been 
provided to the Palestinian Authority and the Palestine Liberation 
Organization shall, notwithstanding any other provision of law, be 
transferred and made available to the Secretary of Defense to provide 
assistance to the Government of Israel for the procurement of the Iron 
Dome defense system to counter short-range rocket threats.
    ``(f) Annual Reports.--The Secretary of State shall annually submit 
to the appropriate congressional committees a report on the amount of 
any bonuses, financial compensation, or any other benefit described in 
subsection (b) that have been disbursed by the Palestinian Authority, 
including by any ministry, agency, or instrumentality or any official 
acting on behalf of any such ministry, agency, or instrumentality, and 
the Palestine Liberation Organization in the preceding 12-month period.
    ``(g) Definitions.--In this section:
            ``(1) Act of terrorism.--The term `act of terrorism' means 
        an act dangerous to human life that would violate the criminal 
        laws of the United States if committed within the jurisdiction 
        of the United States that appears to be intended to--
                    ``(A) intimidate or coerce a civilian population;
                    ``(B) influence the policy of a government by 
                intimidation or coercion;
                    ``(C) affect the conduct of a government by mass 
                destruction, assassination, or kidnapping; or
                    ``(D) impair Israel's existence as a Jewish, 
                democratic state within its current territorial 
                boundaries.
            ``(2) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on Foreign Affairs and the 
                Committee on Appropriations of the House of 
                Representatives; and
                    ``(B) the Committee on Foreign Relations and the 
                Committee on Appropriations of the Senate.
            ``(3) Foreign terrorist organization.--The term `foreign 
        terrorist organization' means an organization designated as a 
        foreign terrorist organization by the Secretary of State in 
        accordance with section 219(a) of the Immigration and 
        Nationality Act (8 U.S.C. 1189(a)).
            ``(4) Palestinian authority.--The term `Palestinian 
        Authority' means 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.''.
No Bonuses for Terrorists Act This bill amends the Foreign Assistance Act of 1961 to prohibit the provision of assistance to the Palestinian Authority (PA) and the Palestinian Liberation Organization (PLO) until the Department of State has certified that the PA and the PLO have ceased paying financial compensation or any other benefit not generally available to the Palestinian population at large to the families of Palestinians killed in connection with an act of terrorism. Recertification is required every six months. If the State Department is unable to make such a certification: (1) it shall report to Congress why it is unable to do so, and (2) funds that otherwise would have been provided to the PA and the PLO shall be transferred and made available to the Department of Defense for assistance to Israel for procurement of the Iron Dome defense system.  The State Department shall annually report on the amount of bonuses, financial compensation, or other benefits that have been disbursed by the PA and the PLO in the preceding 12 months. 
No Bonuses for Terrorists Act