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[109th Congress Public Law 446]
[From the U.S. Government Printing Office]

[DOCID: f:publ446.109]

[[Page 3317]]

                 PALESTINIAN ANTI-TERRORISM ACT OF 2006

[[Page 120 STAT. 3318]]

Public Law 109-446
109th Congress

                                 An Act

 
To promote the development of democratic institutions in areas under the 
   administrative control of the Palestinian Authority, and for other 
             purposes. <<NOTE: Dec. 21, 2006 -  [S. 2370]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Palestinian 
Anti-Terrorism Act of 2006.>> 

SECTION 1. <<NOTE: 22 USC 2378b note.>> SHORT TITLE.

    This Act may be cited as the ``Palestinian Anti-Terrorism Act of 
2006''.

SEC. 2. <<NOTE: 22 USC 2378b note.>> LIMITATION ON ASSISTANCE TO THE 
            PALESTINIAN AUTHORITY.

    (a) Declaration of Policy.--It shall be the policy of the United 
States--
            (1) 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'');
            (2) to oppose those organizations, individuals, and 
        countries that support terrorism and violently reject a two-
        state solution to end the Israeli-Palestinian conflict;
            (3) to promote the rule of law, democracy, the cessation of 
        terrorism and incitement, and good governance in institutions 
        and territories controlled by the Palestinian Authority; and
            (4) to urge members of the international community to avoid 
        contact with and refrain from supporting the terrorist 
        organization Hamas until it agrees to recognize Israel, renounce 
        violence, disarm, and accept prior agreements, including the 
        Roadmap.

    (b) Amendments.--Chapter 1 of part III of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2351 et seq.) is amended--
            (1) by redesignating the second section 620G (as added by 
        section 149 of Public Law 104-164 (110 Stat. 1436)) <<NOTE: 22 
        USC 2378a.>> as section 620J; and
            (2) by adding at the end the following new section:

``SEC. 620K. <<NOTE: 22 USC 2378b.>> LIMITATION ON ASSISTANCE TO THE 
            PALESTINIAN AUTHORITY.

    ``(a) Limitation.--Assistance may be provided under this Act to the 
Hamas-controlled Palestinian Authority only during a period for which a 
certification described in subsection (b) is in effect.
    ``(b) Certification.--A <<NOTE: President.>> certification described 
in subsection (a) is a certification transmitted by the President to 
Congress that contains a determination of the President that--

[[Page 120 STAT. 3319]]

            ``(1) no ministry, agency, or instrumentality of the 
        Palestinian Authority is effectively controlled by Hamas, unless 
        the Hamas-controlled Palestinian Authority has--
                    ``(A) publicly acknowledged the Jewish state of 
                Israel's right to exist; and
                    ``(B) committed itself and is adhering to all 
                previous agreements and understandings with the United 
                States Government, with the Government of Israel, and 
                with 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
            ``(2) the Hamas-controlled Palestinian Authority has made 
        demonstrable progress toward--
                    ``(A) completing the process of purging from its 
                security services individuals with ties to terrorism;
                    ``(B) dismantling all terrorist infrastructure 
                within its jurisdiction, 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-American and anti-Israel 
                incitement in Palestinian Authority-controlled 
                electronic and print media and in schools, mosques, and 
                other institutions it controls, and replacing 
                educational materials, including textbooks, with 
                materials that promote peace, tolerance, 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.

    ``(c) Recertifications.--Not <<NOTE: Deadlines. President.>> later 
than 90 days after the date on which the President transmits to Congress 
an initial certification under subsection (b), and every six months 
thereafter--
            ``(1) the President shall transmit to Congress a 
        recertification that the conditions described in subsection (b) 
        are continuing to be met; or
            ``(2) <<NOTE: Reports.>> if the President is unable to make 
        such a recertification, the President shall transmit to Congress 
        a report that contains the reasons therefor.

    ``(d) Congressional Notification.--Assistance <<NOTE: Effective 
date.>> made available under this Act to the Palestinian Authority may 
not be provided until 15 days after the date on which the President has 
provided notice thereof to the appropriate congressional committees in 
accordance with the procedures applicable to reprogramming notifications 
under section 634A(a) of this Act.

    ``(e) National Security Waiver.--
            ``(1) In general.--Subject to paragraph (2), the President 
        may waive subsection (a) with respect to--
                    ``(A) the administrative and personal security costs 
                of the Office of the President of the Palestinian 
                Authority;
                    ``(B) the activities of the President of the 
                Palestinian Authority to fulfill his or her duties as 
                President, including to maintain control of the 
                management and security of

[[Page 120 STAT. 3320]]

                border crossings, to foster the Middle East peace 
                process, and to promote democracy and the rule of law; 
                and
                    ``(C) assistance for the judiciary branch of the 
                Palestinian Authority and other entities.
            ``(2) Certification.--The President may only exercise the 
        waiver authority under paragraph (1) after--
                    ``(A) consulting with, and submitting a written 
                policy justification to, the appropriate congressional 
                committees; and
                    ``(B) certifying to the appropriate congressional 
                committees that--
                          ``(i) it is in the national security interest 
                      of the United States to provide assistance 
                      otherwise prohibited under subsection (a); and
                          ``(ii) the individual or entity for which 
                      assistance is proposed to be provided is not a 
                      member of, or effectively controlled by (as the 
                      case may be), Hamas or any other foreign terrorist 
                      organization.
            ``(3) Report.--Not <<NOTE: President.>> later than 10 days 
        after exercising the waiver authority under paragraph (1), the 
        President shall submit to the appropriate congressional 
        committees a report describing how the funds provided pursuant 
        to such waiver will be spent and detailing the accounting 
        procedures that are in place to ensure proper oversight and 
        accountability.
            ``(4) Treatment of certification as notification of program 
        change.--For purposes of this subsection, the certification 
        required under paragraph (2)(B) shall be deemed to be a 
        notification under section 634A and shall be considered in 
        accordance with the procedures applicable to notifications 
        submitted pursuant to that section.

    ``(f) Definitions.--In this section:
            ``(1) Appropriate congressional committees.--The term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on International Relations 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.
            ``(2) 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)).
            ``(3) 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.''.

    (c) Previously Obligated Funds.--
The <<NOTE: Applicability.>> provisions of section 620K of the Foreign 
Assistance Act of 1961, as added by subsection (b), shall be applicable 
to the unexpended balances of funds obligated prior to the date of the 
enactment of this Act.

SEC. 3. <<NOTE: 22 USC 2378b note.>> LIMITATION ON ASSISTANCE FOR THE 
            WEST BANK AND GAZA.

    (a) Amendment.--Chapter 1 of part III of the Foreign Assistance Act 
of 1961 (22 U.S.C. 2351 et seq.), as amended by section

[[Page 120 STAT. 3321]]

2(b)(2), is further amended by adding at the end the following new 
section:

``SEC. 620L. <<NOTE: 22 USC 2378c.>> LIMITATION ON ASSISTANCE FOR THE 
            WEST BANK AND GAZA.

    ``(a) Limitation.--Assistance may be provided under this Act to 
nongovernmental organizations for the West Bank and Gaza only during a 
period for which a certification described in section 620K(b) is in 
effect with respect to the Palestinian Authority.
    ``(b) Exceptions.--Subsection (a) shall not apply with respect to 
the following:
            ``(1) Assistance to meet basic human needs.--Assistance to 
        meet food, water, medicine, health, or sanitation needs, or 
        other assistance to meet basic human needs.
            ``(2) Assistance to promote democracy.--Assistance to 
        promote democracy, human rights, freedom of the press, non-
        violence, reconciliation, and peaceful coexistence, provided 
        that such assistance does not directly benefit Hamas or any 
        other foreign terrorist organization.
            ``(3) Assistance for individual members of the palestinian 
        legislative council.--Assistance, other than funding of salaries 
        or salary supplements, to individual members of the Palestinian 
        Legislative Council who the President determines are not members 
        of Hamas or any other foreign terrorist organization, for the 
        purposes of facilitating the attendance of such members in 
        programs for the development of institutions of democratic 
        governance, including enhancing the transparent and accountable 
        operations of such institutions, and providing support for the 
        Middle East peace process.
            ``(4) Other types of assistance.--
        Any <<NOTE: President.>> other type of assistance if the 
        President--
                    ``(A) determines that the provision of such 
                assistance is in the national security interest of the 
                United States; and
                    ``(B) <<NOTE: Deadline.>> not less than 30 days 
                prior to the obligation of amounts for the provision of 
                such assistance--
                          ``(i) consults with the appropriate 
                      congressional committees regarding the specific 
                      programs, projects, and activities to be carried 
                      out using such assistance; and
                          ``(ii) submits to the appropriate 
                      congressional committees a written memorandum that 
                      contains the determination of the President under 
                      subparagraph (A).

    ``(c) Marking Requirement.--Assistance provided under this Act to 
nongovernmental organizations for the West Bank and Gaza shall be marked 
as assistance from the American people or the United States Government 
unless the Secretary of State or, as appropriate, the Administrator of 
the United States Agency for International Development, determines that 
such marking will endanger the lives or safety of persons delivering 
such assistance or would have an adverse effect on the implementation of 
that assistance.
    ``(d) Congressional Notification.--Assistance <<NOTE: Effective 
date.>> made available under this Act to nongovernmental organizations 
for the West Bank and Gaza may not be provided until 15 days after the 
date on which the President has provided notice thereof to the Committee 

[[Page 120 STAT. 3322]]

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.
    ``(e) Definitions.--In this section:
            ``(1) Appropriate congressional committees.--the term 
        `appropriate congressional committees' means--
                    ``(A) the Committee on International Relations 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.
            ``(2) 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)).''.

    (b) Oversight and Related Requirements.--
            (1) Oversight.--For <<NOTE: Certification. Deadline.>> each 
        of the fiscal years 2007 and 2008, the Secretary of State shall 
        certify to the appropriate congressional committees not later 
        than 30 days prior to the initial obligation of amounts for 
        assistance to nongovernmental organizations for the West Bank or 
        Gaza under the Foreign Assistance Act of 1961 that procedures 
        have been established to ensure that the Comptroller General of 
        the United States will have access to appropriate United States 
        financial information in order to review the use of such 
        assistance.
            (2) Vetting.--Prior to any obligation of amounts for each of 
        the fiscal years 2007 and 2008 for assistance to nongovernmental 
        organizations for the West Bank or Gaza under the Foreign 
        Assistance Act of 1961, the Secretary of State shall take all 
        appropriate steps to ensure that such 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. The Secretary shall, 
        as appropriate, establish procedures specifying the steps to be 
        taken in carrying out this paragraph and shall terminate 
        assistance to any individual or entity that the Secretary has 
        determined advocates, plans, sponsors, or engages in terrorist 
        activity.
            (3) Prohibition.--No amounts made available for fiscal year 
        2007 or 2008 for assistance to nongovernmental organizations for 
        the West Bank or Gaza under the Foreign Assistance Act of 1961 
        may be made available for the purpose of recognizing or 
        otherwise honoring individuals who commit, or have committed, 
        acts of terrorism.
            (4) Audits.--
                    (A) In general.--The Administrator of the United 
                States Agency for International Development shall ensure 
                that Federal or non-Federal audits of all contractors 
                and grantees, and significant subcontractors and 
                subgrantees, that receive amounts for assistance to 
                nongovernmental organizations for the West Bank or Gaza 
                under the Foreign Assistance Act of 1961 are conducted 
                for each of the fiscal years 2007 and 2008 to ensure, 
                among other things, compliance with this subsection.

[[Page 120 STAT. 3323]]

                    (B) Audits by inspector general of usaid.--Of the 
                amounts available for each of the fiscal years 2007 and 
                2008 for assistance to nongovernmental organizations for 
                the West Bank or Gaza under the Foreign Assistance Act 
                of 1961, up to $1,000,000 for each such fiscal year may 
                be used by the Office of the Inspector General of the 
                United States Agency for International Development for 
                audits, inspections, and other activities in furtherance 
                of the requirements of subparagraph (A). Such amounts 
                are in addition to amounts otherwise available for such 
                purposes.

SEC. 4. <<NOTE: 22 USC 2378b note.>> DESIGNATION OF TERRITORY CONTROLLED 
            BY THE PALESTINIAN AUTHORITY AS TERRORIST SANCTUARY.

    It is the sense of Congress that, during any period for which a 
certification described in section 620K(b) of the Foreign Assistance Act 
of 1961 (as added by section 2(b)(2) of this Act) is not in effect with 
respect to the Palestinian Authority, the territory controlled by the 
Palestinian Authority should be deemed to be in use as a sanctuary for 
terrorists or terrorist organizations for purposes of section 6(j)(5) of 
the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(5)) and 
section 140 of the Foreign Relations Authorization Act, Fiscal Years 
1988 and 1989 (22 U.S.C. 2656f).

SEC. 5. <<NOTE: 22 USC 2378b note.>> DENIAL OF VISAS FOR OFFICIALS OF 
            THE PALESTINIAN AUTHORITY.

    (a) In General.--Except as provided in subsection (b), a visa should 
not be issued to any alien who is an official of, under the control of, 
or serving as a representative of the Hamas-led Palestinian Authority 
during any period for which a certification described in section 620K(b) 
of the Foreign Assistance Act of 1961 (as added by section 2(b)(2) of 
this Act) is not in effect with respect to the Palestinian Authority.
    (b) Exception.--The restriction under subsection (a) should not 
apply to--
            (1) the President of the Palestinian Authority and his or 
        her personal representatives, provided that the President and 
        his or her personal representatives are not affiliated with 
        Hamas or any other foreign terrorist organization; and
            (2) members of the Palestinian Legislative Council who are 
        not members of Hamas or any other foreign terrorist 
        organization.

SEC. 6. <<NOTE: 22 USC 2378b note.>> TRAVEL RESTRICTIONS ON OFFICIALS 
            AND REPRESENTATIVES OF THE PALESTINIAN AUTHORITY AND THE 
            PALESTINE LIBERATION ORGANIZATION STATIONED AT THE UNITED 
            NATIONS IN NEW YORK CITY.

    (a) In General.--Notwithstanding any other provision of law, and 
except as provided in subsection (b), the President should restrict the 
travel of officials and representatives of the Palestinian Authority and 
of the Palestine Liberation Organization, who are stationed at the 
United Nations in New York City to a 25-mile radius of the United 
Nations headquarters building during any period for which a 
certification described in section 620K(b) of the Foreign Assistance Act 
of 1961 (as added by section 2(b)(2) of this Act) is not in effect with 
respect to the Palestinian Authority.
    (b) Exception.--The travel restrictions described in subsection (a) 
should not apply to the President of the Palestinian Authority and his 
or her personal representatives, provided that the President

[[Page 120 STAT. 3324]]

and his or her personal representatives are not affiliated with Hamas or 
any other foreign terrorist organization.

SEC. 7. <<NOTE: 22 USC 2378b note.>> PROHIBITION ON PALESTINIAN 
            AUTHORITY REPRESENTATION IN THE UNITED STATES.

    (a) Prohibition.--Notwithstanding any other provision of law, it 
shall be unlawful 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 during any period for which a 
certification described in section 620K(b) of the Foreign Assistance Act 
of 1961 (as added by section 2(b)(2) of this Act) is not in effect with 
respect to the Palestinian Authority.
    (b) Enforcement.--
            (1) Attorney general.--The Attorney General shall take the 
        necessary steps and institute the necessary legal action to 
        effectuate the policies and provisions of subsection (a).
            (2) Relief.--Any district court of the United States for a 
        district in which a violation of subsection (a) occurs shall 
        have authority, upon petition of relief by the Attorney General, 
        to grant injunctive and such other equitable relief as it shall 
        deem necessary to enforce the provisions of subsection (a).

    (c) Waiver.--Subsection (a) shall not apply if the President 
determines and certifies to the appropriate congressional committees 
that the establishment or maintenance of an office, headquarters, 
premises, or other facilities is vital to the national security 
interests of the United States.

SEC. 8. <<NOTE: 22 USC 2378b note.>> INTERNATIONAL FINANCIAL 
            INSTITUTIONS.

    (a) Requirement.--The President should direct the United States 
Executive Director at each international financial institution to use 
the voice, vote, and influence of the United States to prohibit 
assistance to the Palestinian Authority (other than assistance described 
under subsection (b)) during any period for which a certification 
described in section 620K(b) of the Foreign Assistance of 1961 (as added 
by section 2(b)(2) of this Act) is not in effect with respect to the 
Palestinian Authority.
    (b) Exceptions.--The prohibition on assistance described in 
subsection (a) should not apply with respect to the following types of 
assistance:
            (1) Assistance to meet food, water, medicine, or sanitation 
        needs, or other assistance to meet basic human needs.
            (2) Assistance to promote democracy, human rights, freedom 
        of the press, non-violence, reconciliation, and peaceful 
        coexistence, provided that such assistance does not directly 
        benefit Hamas or other foreign terrorist organizations.

    (c) Definition.--In this section, the term ``international financial 
institution'' has the meaning given the term in section 1701(c)(2) of 
the International Financial Institutions Act (22 U.S.C. 262r(c)(2)).

SEC. 9. <<NOTE: 22 USC 2378b note.>> DIPLOMATIC CONTACTS WITH 
            PALESTINIAN TERROR ORGANIZATIONS.

    No funds authorized or available to the Department of State may be 
used for or by any officer or employee of the United States Government 
to negotiate 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

[[Page 120 STAT. 3325]]

Palestinian terrorist organization (except in emergency or humanitarian 
situations), unless and until such organization--
            (1) recognizes Israel's right to exist;
            (2) renounces the use of terrorism;
            (3) dismantles the infrastructure in areas within its 
        jurisdiction necessary to carry out terrorist acts, including 
        the disarming of militias and the elimination of all instruments 
        of terror; and
            (4) recognizes and accepts all previous agreements and 
        understandings between the State of Israel and the Palestinian 
        Authority.

SEC. 10. <<NOTE: 22 USC 2378b note.>> ISRAELI-PALESTINIAN PEACE, 
            RECONCILIATION AND DEMOCRACY FUND.

    (a) Establishment of Fund.--Not <<NOTE: Deadline.>> later than 60 
days after the date of the enactment of this Act, the Secretary of State 
shall establish a fund to be known as the ``Israeli-Palestinian Peace, 
Reconciliation and Democracy Fund'' (in this section referred to as the 
``Fund''). The purpose of the Fund shall be to support, primarily, 
through Palestinian and Israeli organizations, the promotion of 
democracy, human rights, freedom of the press, and non-violence among 
Palestinians, and peaceful coexistence and reconciliation between 
Israelis and Palestinians.

    (b) Annual Report.--Not later than 60 days after the date of the 
enactment of this Act, and annually thereafter for so long as the Fund 
remains in existence, the Secretary of State shall submit to the 
appropriate congressional committees a report on programs sponsored and 
proposed to be sponsored by the Fund.
    (c) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of State $20,000,000 for fiscal year 2007 
for purposes of the Fund.

SEC. 11. <<NOTE: 22 USC 2378b note.>> REPORTING REQUIREMENT.

    Not later than 90 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 that--
            (1) describes the steps that have been taken by the United 
        States Government to ensure that other countries and 
        international organizations, including multilateral development 
        banks, do not provide direct assistance to the Palestinian 
        Authority for any period for which a certification described in 
        section 620K(b) of the Foreign Assistance Act of 1961 (as added 
        by section 2(b)(2) of this Act) is not in effect with respect to 
        the Palestinian Authority; and
            (2) identifies any countries and international 
        organizations, including multilateral development banks, that 
        are providing direct assistance to the Palestinian Authority 
        during such a period, and describes the nature and amount of 
        such assistance.

SEC. 12. <<NOTE: 22 USC 2378b note.>> DEFINITIONS.

    In this Act:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on International Relations 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.

[[Page 120 STAT. 3326]]

            (2) Palestinian authority.--The term ``Palestinian 
        Authority'' has the meaning given the term in section 620K(e)(2) 
        of the Foreign Assistance Act of 1961 (as added by section 
        2(b)(2) of this Act).

    Approved December 21, 2006.

LEGISLATIVE HISTORY--S. 2370 (H.R. 4681):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 109-462, Pt. 1 (Comm. on International Relations) and 
          Pt. 2 (Comm. on the Judiciary), both accompanying H.R. 4681.
CONGRESSIONAL RECORD, Vol. 152 (2006):
            June 23, considered and passed Senate.
            Dec. 7, considered and passed House.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 42 (2006):
            Dec. 21, Presidential statement.

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