To amend the Foreign Assistance Act of 1961 to assist Palestinian refugees in the West Bank and Gaza to move to post-refugee status, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``UNRWA Integrity Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The United Nations Relief and Works Agency for 
        Palestine Refugees in the Near East (UNRWA) was established in 
        1949 as a temporary agency to provide relief services to 
        Palestinian refugees and is the only United Nations agency 
        dedicated to one specific group of refugees.
            (2) Unlike the United Nations High Commissioner for 
        Refugees which seeks to find ``lasting solutions'' to the 
        plight of refugees, UNRWA makes no effort to resettle 
        Palestinian refugees.
            (3) Since 1950, the United States has contributed more than 
        $2 billion to UNRWA.
            (4) In 2005, the United States contributed $108 million to 
        UNRWA, constituting approximately one-fourth of UNRWA's 2005 
        budget.
            (5) UNRWA has never permitted an independent third party 
        audit by an internationally-recognized auditing firm.
            (6) The last audit conducted by UNRWA's own Board of 
        Auditors and certified by the United Nations Board of Auditors 
        provided only summary totals which were vague and in addition 
        left at least $43 million in expenditures completely undefined.

SEC. 3. LIMITATIONS ON UNITED STATES VOLUNTARY CONTRIBUTIONS TO UNRWA.

    (a) Amendment.--Section 301 of the Foreign Assistance Act of 1961 
(22 U.S.C. 2221) is amended by inserting after subsection (a) the 
following new subsection:
    ``(b) Voluntary Contributions to UNRWA.--
            ``(1) Limitation.--
                    ``(A) In general.--Subject to subparagraph (B), 
                voluntary contributions by the United States to the 
                regular budget of the United Nations Relief and Works 
                Agency for Palestine Refugees in the Near East (UNRWA), 
                or to any successor or related entity, may be provided 
                only during a period for which a certification 
                described in paragraph (2) is in effect.
                    ``(B) Waiver.--The President may waive the 
                limitation requirement of subparagraph (A) for a period 
                not to exceed 180 days if the President determines that 
                it is the national security interests of the United 
                States to do so and notifies Congress of such 
                determination.
            ``(2) Certification.--A certification described in this 
        paragraph is a certification transmitted by the President to 
        Congress that contains a determination of the President that 
        UNRWA--
                    ``(A) is not an impediment to achieving a lasting 
                solution for Palestinian refugees in the West Bank and 
                Gaza and moving such refugees to post-refugee status;
                    ``(B) is subject to comprehensive financial audits 
                by an internationally-recognized third party 
                independent auditing firm;
                    ``(C) does not knowingly provide employment, 
                refuge, freedom of movement, cash assistance, food 
                assistance, housing rehabilitation assistance, or any 
                other type of social services assistance to members of 
                foreign terrorist organizations; and
                    ``(D) does not promote anti-Semitism or the denial 
                of the right of Israel to exist.
            ``(3) Recertifications.--Not later than 180 days after the 
        date on which the President transmits to Congress an initial 
        certification under paragraph (2), and every 180 days 
        thereafter--
                    ``(A) the President shall transmit to Congress a 
                recertification that the requirements contained in 
                paragraph (2) are continuing to be met; or
                    ``(B) if the President is unable to make such a 
                recertification, the President shall transmit to 
                Congress a report that contains the reasons therefor.
            ``(4) Congressional notification.--Voluntary contributions 
        by the United States to the regular budget of UNRWA, or to any 
        successor or related entity, may not be provided until 15 days 
        after the date on which the President has provided notice 
        thereof to the Committee on International Relations and the 
        Committee on Appropriations of the House of Representatives and 
        to the Committee on Foreign Relations and the Committee on 
        Appropriations of the Senate in accordance with the procedures 
        applicable to reprogramming notifications under section 634A(a) 
        of this Act.
            ``(5) Definition.--In this subsection, 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)).''.
    (b) Effective Date.--The requirements of subsection (b) of section 
301 of the Foreign Assistance Act of 1961, as added by subsection (a) 
of this section, apply with respect to voluntary contributions by the 
United States to the United Nations Relief and Works Agency for 
Palestine Refugees in the Near East (UNRWA), or to any successor or 
related entity, for fiscal year 2007 and each subsequent fiscal year.

SEC. 4. REPORT.

    Not later than one year after the date of the enactment of this 
Act, the Secretary of State shall submit to Congress a report on--
            (1) the extent to which Palestinian refugees and United 
        States interests are served by activities of the United Nations 
        Relief and Works Agency for Palestine Refugees in the Near East 
        (UNRWA), including a determination as to whether--
                    (A) UNRWA contributes to a solution to the refugee 
                problem or perpetuates the refugee problem; and
                    (B) UNRWA programs encourage or discourage 
                Palestinians from moving out of refugee camps and 
                pursuing an economically independent existence;
            (2) the extent to which UNRWA includes in its educational 
        materials or other programs anti-Semitic elements or elements 
        that promote the denial of the right of Israel to exist;
            (3) a long-term plan for providing jobs and housing for 
        Palestinian refugees and for phasing out services provided by 
        UNRWA;
            (4) a plan for ensuring that educational materials used at 
        UNRWA-administered schools do not promote anti-Semitism or the 
        denial of the right of Israel to exist; and
            (5) the efforts of the Secretary to encourage other donors 
        to UNRWA to support the plans described in paragraphs (3) and 
        (4).

Summary: UNRWA Integrity Act - Amends the Foreign Assistance Act of 1961 to provide that voluntary US contributions to the regular budget of the United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) may be provided only during a period for which the President certifies to Congress that UNRWA: (1) is not an impediment to achieving a lasting solution for Palestinian refugees in the West Bank and Gaza and moving such refugees to post-refugee status, (2) is subject to comprehensive, independent financial audits. (3) does not knowingly provide employment, refuge, freedom of movement, cash assistance, food assistance, housing rehabilitation assistance, or any other type of social services assistance to members of foreign terrorist organizations. And (4) does not promote anti-Semitism or the denial of Israel's right to exist. Authorizes a maximum 180-day waiver of such limitation for US national security interests. Requires recertification not later than 180 days after the initial certification and every 180 days thereafter. Requires a report by the Secretary of State to Congress respecting the extent to which UNRWA: (1) serves Palestinian refugee and US interests. And (2) includes in its educational materials anti-Semitic or anti-Israel elements.