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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 2370 Enrolled Bill (ENR)]

        S.2370

                       One Hundred Ninth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
             the third day of January, two thousand and six

                                 An Act

To promote the development of democratic institutions in areas under the 
   administrative control of the Palestinian Authority, and for other 
                                purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

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

SEC. 2. 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)) as section 
    620J; and
        (2) by adding at the end the following new section:

``SEC. 620K. 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 certification described in subsection (a) 
is a certification transmitted by the President to Congress that 
contains a determination of the President that--
        ``(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 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) 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 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 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 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 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. 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 2(b)(2), is 
further amended by adding at the end the following new section:

``SEC. 620L. 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 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) 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 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 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 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.
            (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. 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. 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. 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 and his or 
her personal representatives are not affiliated with Hamas or any other 
foreign terrorist organization.

SEC. 7. 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. 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. 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 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. ISRAELI-PALESTINIAN PEACE, RECONCILIATION AND DEMOCRACY FUND.

    (a) Establishment of Fund.--Not 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. 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. 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.
        (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).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
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