SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Taylor Force Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) The Palestinian Authority's practice of paying salaries 
        to terrorists serving in Israeli prisons, as well as to the 
        families of deceased terrorists, is an incentive to commit acts 
        of terror.
            (2) The United States does not provide direct budgetary 
        support to the Palestinian Authority. The United States does 
        pay certain debts held by the Palestinian Authority and fund 
        programs which the Palestinian Authority would otherwise be 
        responsible for.
            (3) The United States Government supports community-based 
        programs in the West Bank and Gaza that provide for basic human 
        needs, such as food, water, health, shelter, protection, 
        education and livelihoods, and that promote peace and 
        development.
            (4) Since fiscal year 2015, annual appropriations 
        legislation has provided for the reduction of Economic Support 
        Fund aid for the Palestinian Authority ``by an amount the 
        Secretary determines is equivalent to the amount expended by 
        the Palestinian Authority as payments for acts of terrorism by 
        individuals who are imprisoned after being fairly tried and 
        convicted for acts of terrorism and by individuals who died 
        committing acts of terrorism during the previous calendar 
        year''.

SEC. 3. SENSE OF CONGRESS.

    Congress--
            (1) calls on the Palestinian Authority to stop these 
        payments and repeal the laws authorizing them;
            (2) calls on all donor countries providing budgetary 
        assistance to the Palestinian Authority to cease direct 
        budgetary support until the Palestinian Authority stops all 
        payments incentivizing terror;
            (3) supports the creation of a general welfare system, 
        available to all Palestinian citizens within the jurisdictional 
        control of the Palestinian Authority;
            (4) urges the United States Permanent Representative to the 
        United Nations to use that position to highlight the issue of 
        Palestinian Authority payments for acts of terrorism and to 
        urge other member nations of the Security Council and the 
        General Assembly to join the United States in calling on the 
        Palestinian Authority to end this system immediately; and
            (5) urges the Department of State to use its bilateral and 
        multilateral engagements with all governments and organizations 
        committed to the cause of peace to highlight the issue of 
        Palestinian Authority payments for acts of terrorism and join 
        the United States in calling on the Palestinian Authority to 
        end this system immediately.

SEC. 4. LIMITATION ON ASSISTANCE TO THE WEST BANK AND GAZA.

    (a) In General.--Funds appropriated or otherwise made available for 
assistance under chapter 4 of part II of the Foreign Assistance Act of 
1961 (22 U.S.C. 2346 et seq.; relating to Economic Support Fund) and 
available for assistance for the West Bank and Gaza that directly 
benefit the Palestinian Authority may only be made available for such 
purpose if the Secretary of State certifies in writing to the 
appropriate congressional committees that the Palestinian Authority--
            (1) is taking credible steps to end acts of violence 
        against Israeli citizens and United States citizens that are 
        perpetrated by individuals under its jurisdictional control, 
        such as the March 2016 attack that killed former United States 
        Army officer Taylor Force, a veteran of the wars in Iraq and 
        Afghanistan;
            (2) has terminated payments for acts of terrorism against 
        Israeli citizens and United States citizens to any individual, 
        after being fairly tried, who has been imprisoned for such acts 
        of terrorism and to any individual who died committing such 
        acts of terrorism, including to a family member of such 
        individuals; and;
            (3) has revoked any law, decree, regulation, or document 
        authorizing or implementing a system of compensation for 
        imprisoned individuals that uses the sentence or period of 
        incarceration of an individual to determine the level of 
        compensation paid.; and
            (4) is publicly condemning such acts of violence and is 
        taking steps to investigate or is cooperating in investigations 
        of such acts to bring the perpetrators to justice.
    (b) Exception.--The limitation on assistance under subsection (a) 
shall not apply to payments made to the East Jerusalem Hospital 
Network.
    (c) Rule of Construction.--Amounts withheld pursuant to this 
section shall be deemed to satisfy any similar withholding or reduction 
required under any other provision of law.

SEC. 5. CONTINUOUS CERTIFICATION.

    Funds appropriated or otherwise made available for assistance under 
chapter 4 of part II of the Foreign Assistance Act of 1961 (22 U.S.C. 
2346 et seq.; relating to Economic Support Fund) and available for 
assistance for the West Bank and Gaza may only be made available for 
such purpose if, not later than 180 days after the date of the 
enactment of this Act, and every 180 days thereafter, the Secretary of 
State certifies in writing to the appropriate congressional committees 
that the Palestinian Authority is taking credible and verifiable steps 
to end acts of violence against Israeli citizens and United States 
citizens that are perpetrated by individuals under its jurisdictional 
control.

SEC. 6. PALESTINIAN AUTHORITY ACCOUNTABILITY FUND.

    (a) Establishment of Fund.--There is established in the Treasury a 
fund to be known as the ``Palestinian Authority Accountability Fund'' 
(PAAF). The PAAF shall consist of funds withheld under sections 4 and 
5.
    (b) Investments.--The Secretary of State shall invest funds in the 
PAAF in an interest-bearing obligation of the United States Government, 
or an obligation that has its principal and interest guaranteed by the 
Government, that the Secretary determines has a maturity suitable for 
the Fund.
    (c) Use of Funds.--Funds from the PAAF may be made available upon a 
certification by the Secretary of State that the Palestinian Authority 
has met the conditions set forth in section 4(a).
    (d) Disposition of Unused Funds.--On the date that is one year 
after the date of the enactment of this Act, and annually thereafter, 
all funds that are in the PAAF shall be withdrawn and made available to 
the Department of State for the purpose of assistance other than that 
deemed benefitting the Palestinian Authority.

SEC. 67. ANNUAL REPORT.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, and annually thereafter, the Secretary of State 
shall submit to the appropriate congressional committees a report 
including at a minimum the following elements:
            (1) An estimate of the amount expended by the Palestinian 
        Authority during the previous calendar year as payments for 
        acts of terrorism by individuals who are imprisoned for such 
        acts.
            (2) An estimate of the amount expended by the Palestinian 
        Authority during the previous calendar year as payments to the 
        families of deceased individuals who committed an act of 
        terrorism.
            (3) An overview of Palestinian laws, decrees, regulations, 
        or documents in effect the previous calendar year that 
        authorize or implement any payments reported under paragraphs 
        (1) and (2).
            (4) A description of United States Government policy, 
        efforts, and engagement with the Palestinian Authority in order 
        to confirm the revocation of any law, decree, regulation, or 
        document in effect the previous calendar year that authorizes 
        or implements any payments reported under paragraphs (1) and 
        (2).
            (5) A description of United States Government policy, 
        efforts, and engagement with other governments, and at the 
        United Nations, to highlight the issue of Palestinian payments 
        for acts of terrorism and to urge other nations to join the 
        United States in calling on the Palestinian Authority to end 
        this system immediately.
    (b) Form of Report.--The report required by subsection (a) shall be 
submitted in unclassified form but may include a classified annex.

SEC. 78. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

    In this Act, the term ``appropriate congressional committees'' 
means--
            (1) the Committee on Appropriations and the Committee on 
        Foreign Relations of the Senate; and
            (2) the Committee on Appropriations and the Committee on 
        Foreign Affairs of the House of Representatives.
Taylor Force Act  (Sec. 3) This bill: (1) calls on the Palestinian Authority's (PA) to stop making payments to terrorists in Israeli prisons and to the families of deceased terrorists, (2) calls on countries to cease providing direct budgetary assistance to the PA until it stops all payments incentivizing terror, (3) urges the U.S. Permanent Representative to the United Nations (U.N.) and the Department of State to highlight the issue and urge other nations to call for an end to such payments, and (4) expresses support for creation of a general welfare system for all Palestinian citizens.  (Sec. 4) Certain assistance under the Foreign Assistance Act of 1961 that directly benefits the PA may not be made available for the West Bank and Gaza unless the State Department certifies that the PA:   is taking steps to end acts of violence against U.S. and Israeli citizens perpetrated by individuals under its jurisdictional control, such as the March 2016 attack that killed former Army officer Taylor Force; has terminated payments for acts of terrorism against U.S. and Israeli citizens to any individual who has been fairly tried and imprisoned for such acts, to any individual who died committing such acts, and to family members of such an individual;   has revoked any law, decree, or document authorizing or implementing a system of compensation for imprisoned individuals that uses the sentence or incarceration period to determine compensation; and  is publicly condemning such acts and is taking steps to investigate or is cooperating in investigations to bring the perpetrators to justice.   This assistance limitation shall not apply to payments made to the East Jerusalem Hospital Network.  (Sec. 5) Certain assistance under such Act for the West Bank and Gaza may not be made available unless the State Department certifies every 180 days that the PA is taking verifiable steps to end acts of violence against Israeli and U.S. citizens by individuals under its jurisdictional control.   (Sec. 6) The bill establishes the Palestinian Authority Accountability Fund, which shall consist of amounts withheld under this bill. Such amounts may be made available upon a State Department certification that the PA has met the conditions for which they were withheld.  (Sec. 7) The State Department shall report to Congress annually with respect to: (1) PA expenditures as payments to individuals and families for acts of terrorism; (2) Palestinian laws, decrees, regulations, or documents that authorize or implement such payments and U.S. policy and engagement with the PA to confirm their revocation; and (3) U.S. policy and engagement with other governments and the U.N. to highlight such payments and urge other nations to join the United States in calling on the PA to end them. 
Taylor Force Act