109TH CONGRESS

2D SESSION S. 2370

AN ACT

To promote the development of democratic institutions in

areas under the administrative control of the Palestinian

Authority, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Palestinian Anti-Ter5 rorism Act of 2006’’.
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1 SEC. 2. LIMITATION ON ASSISTANCE TO THE PALESTINIAN

2 AUTHORITY.

3 (a) DECLARATION OF POLICY.—It shall be the policy

4 of the United States—

5 (1) to support a peaceful, two-state solution to

6 end the conflict between Israel and the Palestinians

7 in accordance with the Performance-Based Roadmap

8 to a Permanent Two-State Solution to the Israeli9 Palestinian Conflict (commonly referred to as the

10 ‘‘Roadmap’’);

11 (2) to oppose those organizations, individuals,

12 and countries that support terrorism and violently

13 reject a two-state solution to end the Israeli-Pales14 tinian conflict;

15 (3) to promote the rule of law, democracy, the

16 cessation of terrorism and incitement, and good gov17 ernance in institutions and territories controlled by

18 the Palestinian Authority; and

19 (4) to urge members of the international com20 munity to avoid contact with and refrain from sup21 porting the terrorist organization Hamas until it

22 agrees to recognize Israel, renounce violence, disarm,

23 and accept prior agreements, including the Road24 map.
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1 (b) AMENDMENTS.—Chapter 1 of part III of the For2 eign Assistance Act of 1961 (22 U.S.C. 2351 et seq.) is

3 amended—

4 (1) by redesignating the second section 620G

5 (as added by section 149 of Public Law 104–164

6 (110 Stat. 1436)) as section 620J; and

7 (2) by adding at the end the following new sec8 tion:

9 ‘‘SEC. 620K. LIMITATION ON ASSISTANCE TO THE PALES10 TINIAN AUTHORITY.

11 ‘‘(a) LIMITATION.—Assistance may be provided

12 under this Act to the Hamas-controlled Palestinian Au13 thority only during a period for which a certification de14 scribed in subsection (b) is in effect.

15 ‘‘(b) CERTIFICATION.—A certification described in

16 subsection (a) is a certification transmitted by the Presi17 dent to Congress that contains a determination of the

18 President that—

19 ‘‘(1) no ministry, agency, or instrumentality of

20 the Palestinian Authority is effectively controlled by

21 Hamas, unless the Hamas-controlled Palestinian Au22 thority has—

23 ‘‘(A) publicly acknowledged the Jewish

24 state of Israel’s right to exist; and
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1 ‘‘(B) committed itself and is adhering to

2 all previous agreements and understandings

3 with the United States Government, with the

4 Government of Israel, and with the inter5 national community, including agreements and

6 understandings pursuant to the Performance7 Based Roadmap to a Permanent Two-State So8 lution to the Israeli-Palestinian Conflict (com9 monly referred to as the ‘Roadmap’); and

10 ‘‘(2) the Hamas-controlled Palestinian Author11 ity has made demonstrable progress toward—

12 ‘‘(A) completing the process of purging

13 from its security services individuals with ties to

14 terrorism;

15 ‘‘(B) dismantling all terrorist infrastruc16 ture within its jurisdiction, confiscating unau17 thorized weapons, arresting and bringing terror18 ists to justice, destroying unauthorized arms

19 factories, thwarting and preempting terrorist

20 attacks, and fully cooperating with Israel’s se21 curity services;

22 ‘‘(C) halting all anti-American and anti23 Israel incitement in Palestinian Authority-con24 trolled electronic and print media and in

25 schools, mosques, and other institutions it con-
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1 trols, and replacing educational materials, in2 cluding textbooks, with materials that promote

3 peace, tolerance, and coexistence with Israel;

4 ‘‘(D) ensuring democracy, the rule of law,

5 and an independent judiciary, and adopting

6 other reforms such as ensuring transparent and

7 accountable governance; and

8 ‘‘(E) ensuring the financial transparency

9 and accountability of all government ministries

10 and operations.

11 ‘‘(c) RECERTIFICATIONS.—Not later than 90 days

12 after the date on which the President transmits to Con13 gress an initial certification under subsection (b), and

14 every six months thereafter—

15 ‘‘(1) the President shall transmit to Congress a

16 recertification that the conditions described in sub17 section (b) are continuing to be met; or

18 ‘‘(2) if the President is unable to make such a

19 recertification, the President shall transmit to Con20 gress a report that contains the reasons therefor.

21 ‘‘(d) CONGRESSIONAL NOTIFICATION.—Assistance

22 made available under this Act to the Palestinian Authority

23 may not be provided until 15 days after the date on which

24 the President has provided notice thereof to the appro25 priate congressional committees in accordance with the
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1 procedures applicable to reprogramming notifications

2 under section 634A(a) of this Act.

3 ‘‘(e) NATIONAL SECURITY WAIVER.—

4 ‘‘(1) IN GENERAL.—Subject to paragraph (2),

5 the President may waive subsection (a) with respect

6 to—

7 ‘‘(A) the administrative and personal secu8 rity costs of the Office of the President of the

9 Palestinian Authority;

10 ‘‘(B) the activities of the President of the

11 Palestinian Authority to fulfill his or her duties

12 as President, including to maintain control of

13 the management and security of border cross14 ings, to foster the Middle East peace process,

15 and to promote democracy and the rule of law;

16 and

17 ‘‘(C) assistance for the judiciary branch of

18 the Palestinian Authority and other entities.

19 ‘‘(2) CERTIFICATION.—The President may only

20 exercise the waiver authority under paragraph (1)

21 after—

22 ‘‘(A) consulting with, and submitting a

23 written policy justification to, the appropriate

24 congressional committees; and
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1 ‘‘(B) certifying to the appropriate congres2 sional committees that—

3 ‘‘(i) it is in the national security inter4 est of the United States to provide assist5 ance otherwise prohibited under subsection

6 (a); and

7 ‘‘(ii) the individual or entity for which

8 assistance is proposed to be provided is not

9 a member of, or effectively controlled by

10 (as the case may be), Hamas or any other

11 foreign terrorist organization.

12 ‘‘(3) REPORT.—Not later than 10 days after

13 exercising the waiver authority under paragraph (1),

14 the President shall submit to the appropriate con15 gressional committees a report describing how the

16 funds provided pursuant to such waiver will be spent

17 and detailing the accounting procedures that are in

18 place to ensure proper oversight and accountability.

19 ‘‘(4) TREATMENT OF CERTIFICATION AS NOTI20 FICATION OF PROGRAM CHANGE.—For purposes of

21 this subsection, the certification required under

22 paragraph (2)(B) shall be deemed to be a notifica23 tion under section 634A and shall be considered in

24 accordance with the procedures applicable to notifi25 cations submitted pursuant to that section.
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1 ‘‘(f) DEFINITIONS.—In this section:

2 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT3 TEES.—The term ‘appropriate congressional com4 mittees’ means—

5 ‘‘(A) the Committee on International Rela6 tions and the Committee on Appropriations of

7 the House of Representatives; and

8 ‘‘(B) the Committee on Foreign Relations

9 and the Committee on Appropriations of the

10 Senate.

11 ‘‘(2) FOREIGN TERRORIST ORGANIZATION.—

12 The term ‘foreign terrorist organization’ means an

13 organization designated as a foreign terrorist organi14 zation by the Secretary of State in accordance with

15 section 219(a) of the Immigration and Nationality

16 Act (8 U.S.C. 1189(a)).

17 ‘‘(3) PALESTINIAN AUTHORITY.—The term

18 ‘Palestinian Authority’ means the interim Pales19 tinian administrative organization that governs part

20 of the West Bank and all of the Gaza Strip (or any

21 successor Palestinian governing entity), including

22 the Palestinian Legislative Council.’’.

23 (c) PREVIOUSLY OBLIGATED FUNDS.—The provi24 sions of section 620K of the Foreign Assistance Act of

25 1961, as added by subsection (b), shall be applicable to
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1 the unexpended balances of funds obligated prior to the

2 date of the enactment of this Act.

3 SEC. 3. LIMITATION ON ASSISTANCE FOR THE WEST BANK

4 AND GAZA.

5 (a) AMENDMENT.—Chapter 1 of part III of the For6 eign Assistance Act of 1961 (22 U.S.C. 2351 et seq.), as

7 amended by section 2(b)(2), is further amended by adding

8 at the end the following new section:

9 ‘‘SEC. 620L. LIMITATION ON ASSISTANCE FOR THE WEST

10 BANK AND GAZA.

11 ‘‘(a) LIMITATION.—Assistance may be provided

12 under this Act to nongovernmental organizations for the

13 West Bank and Gaza only during a period for which a

14 certification described in section 620K(b) is in effect with

15 respect to the Palestinian Authority.

16 ‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply

17 with respect to the following:

18 ‘‘(1) ASSISTANCE TO MEET BASIC HUMAN

19 NEEDS.—Assistance to meet food, water, medicine,

20 health, or sanitation needs, or other assistance to

21 meet basic human needs.

22 ‘‘(2) ASSISTANCE TO PROMOTE DEMOCRACY.—

23 Assistance to promote democracy, human rights,

24 freedom of the press, non-violence, reconciliation,

25 and peaceful co-existence, provided that such assist-
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1 ance does not directly benefit Hamas or any other

2 foreign terrorist organization.

3 ‘‘(3) ASSISTANCE FOR INDIVIDUAL MEMBERS

4 OF THE PALESTINIAN LEGISLATIVE COUNCIL.—As5 sistance, other than funding of salaries or salary

6 supplements, to individual members of the Pales7 tinian Legislative Council who the President deter8 mines are not members of Hamas or any other for9 eign terrorist organization, for the purposes of facili10 tating the attendance of such members in programs

11 for the development of institutions of democratic

12 governance, including enhancing the transparent and

13 accountable operations of such institutions, and pro14 viding support for the Middle East peace process.

15 ‘‘(4) OTHER TYPES OF ASSISTANCE.—Any

16 other type of assistance if the President—

17 ‘‘(A) determines that the provision of such

18 assistance is in the national security interest of

19 the United States; and

20 ‘‘(B) not less than 30 days prior to the ob21 ligation of amounts for the provision of such

22 assistance—

23 ‘‘(i) consults with the appropriate con24 gressional committees regarding the spe-
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1 cific programs, projects, and activities to

2 be carried out using such assistance; and

3 ‘‘(ii) submits to the appropriate con4 gressional committees a written memo5 randum that contains the determination of

6 the President under subparagraph (A).

7 ‘‘(c) MARKING REQUIREMENT.—Assistance provided

8 under this Act to nongovernmental organizations for the

9 West Bank and Gaza shall be marked as assistance from

10 the American people or the United States Government un11 less the Secretary of State or, as appropriate, the Admin12 istrator of the United States Agency for International De13 velopment, determines that such marking will endanger

14 the lives or safety of persons delivering such assistance

15 or would have an adverse effect on the implementation of

16 that assistance.

17 ‘‘(d) CONGRESSIONAL NOTIFICATION.—Assistance

18 made available under this Act to nongovernmental organi19 zations for the West Bank and Gaza may not be provided

20 until 15 days after the date on which the President has

21 provided notice thereof to the Committee on International

22 Relations and the Committee on Appropriations of the

23 House of Representatives and to the Committee on For24 eign Relations and the Committee on Appropriations of

25 the Senate in accordance with the procedures applicable
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1 to reprogramming notifications under section 634A(a) of

2 this Act.

3 ‘‘(e) DEFINITIONS.—In this section:

4 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT5 TEES.—the term ‘appropriate congressional commit6 tees’ means—

7 ‘‘(A) the Committee on International Rela8 tions and the Committee on Appropriations of

9 the House of Representatives; and

10 ‘‘(B) the Committee on Foreign Relations

11 and the Committee on Appropriations of the

12 Senate.

13 ‘‘(2) FOREIGN TERRORIST ORGANIZATION.—

14 The term ‘foreign terrorist organization’ means an

15 organization designated as a foreign terrorist organi16 zation by the Secretary of State in accordance with

17 section 219(a) of the Immigration and Nationality

18 Act (8 U.S.C. 1189(a)).’’.

19 (b) OVERSIGHT AND RELATED REQUIREMENTS.—

20 (1) OVERSIGHT.—For each of the fiscal years

21 2007 and 2008, the Secretary of State shall certify

22 to the appropriate congressional committees not

23 later than 30 days prior to the initial obligation of

24 amounts for assistance to nongovernmental organi25 zations for the West Bank or Gaza under the For-
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1 eign Assistance Act of 1961 that procedures have

2 been established to ensure that the Comptroller Gen3 eral of the United States will have access to appro4 priate United States financial information in order

5 to review the use of such assistance.

6 (2) VETTING.—Prior to any obligation of

7 amounts for each of the fiscal years 2007 and 2008

8 for assistance to nongovernmental organizations for

9 the West Bank or Gaza under the Foreign Assist10 ance Act of 1961, the Secretary of State shall take

11 all appropriate steps to ensure that such assistance

12 is not provided to or through any individual or entity

13 that the Secretary knows, or has reason to believe,

14 advocates, plans, sponsors, engages in, or has en15 gaged in, terrorist activity. The Secretary shall, as

16 appropriate, establish procedures specifying the

17 steps to be taken in carrying out this paragraph and

18 shall terminate assistance to any individual or entity

19 that the Secretary has determined advocates, plans,

20 sponsors, or engages in terrorist activity.

21 (3) PROHIBITION.—No amounts made available

22 for fiscal year 2007 or 2008 for assistance to non23 governmental organizations for the West Bank or

24 Gaza under the Foreign Assistance Act of 1961 may

25 be made available for the purpose of recognizing or
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1 otherwise honoring individuals who commit, or have

2 committed, acts of terrorism.

3 (4) AUDITS.—

4 (A) IN GENERAL.—The Administrator of

5 the United States Agency for International De6 velopment shall ensure that Federal or non7 Federal audits of all contractors and grantees,

8 and significant subcontractors and subgrantees,

9 that receive amounts for assistance to non10 governmental organizations for the West Bank

11 or Gaza under the Foreign Assistance Act of

12 1961 are conducted for each of the fiscal years

13 2007 and 2008 to ensure, among other things,

14 compliance with this subsection.

15 (B) AUDITS BY INSPECTOR GENERAL OF

16 USAID.—Of the amounts available for each of

17 the fiscal years 2007 and 2008 for assistance to

18 nongovernmental organizations for the West

19 Bank or Gaza under the Foreign Assistance

20 Act of 1961, up to $1,000,000 for each such

21 fiscal year may be used by the Office of the In22 spector General of the United States Agency for

23 International Development for audits, inspec24 tions, and other activities in furtherance of the

25 requirements of subparagraph (A). Such
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1 amounts are in addition to amounts otherwise

2 available for such purposes.

3 SEC. 4. DESIGNATION OF TERRITORY CONTROLLED BY THE

4 PALESTINIAN AUTHORITY AS TERRORIST

5 SANCTUARY.

6 It is the sense of Congress that, during any period

7 for which a certification described in section 620K(b) of

8 the Foreign Assistance Act of 1961 (as added by section

9 2(b)(2) of this Act) is not in effect with respect to the

10 Palestinian Authority, the territory controlled by the Pal11 estinian Authority should be deemed to be in use as a

12 sanctuary for terrorists or terrorist organizations for pur13 poses of section 6(j)(5) of the Export Administration Act

14 of 1979 (50 U.S.C. App. 2405(j)(5)) and section 140 of

15 the Foreign Relations Authorization Act, Fiscal Years

16 1988 and 1989 (22 U.S.C. 2656f).

17 SEC. 5. DENIAL OF VISAS FOR OFFICIALS OF THE PALES18 TINIAN AUTHORITY.

19 (a) IN GENERAL.—Except as provided in subsection

20 (b), a visa should not be issued to any alien who is an

21 official of, under the control of, or serving as a representa22 tive of the Hamas-led Palestinian Authority during any

23 period for which a certification described in section

24 620K(b) of the Foreign Assistance Act of 1961 (as added
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1 by section 2(b)(2) of this Act) is not in effect with respect

2 to the Palestinian Authority.

3 (b) EXCEPTION.—The restriction under subsection

4 (a) should not apply to—

5 (1) the President of the Palestinian Authority

6 and his or her personal representatives, provided

7 that the President and his or her personal represent8 atives are not affiliated with Hamas or any other

9 foreign terrorist organization; and

10 (2) members of the Palestinian Legislative

11 Council who are not members of Hamas or any

12 other foreign terrorist organization.

13 SEC. 6. TRAVEL RESTRICTIONS ON OFFICIALS AND REP14 RESENTATIVES OF THE PALESTINIAN AU15 THORITY AND THE PALESTINE LIBERATION

16 ORGANIZATION STATIONED AT THE UNITED

17 NATIONS IN NEW YORK CITY.

18 (a) IN GENERAL.—Notwithstanding any other provi19 sion of law, and except as provided in subsection (b), the

20 President should restrict the travel of officials and rep21 resentatives of the Palestinian Authority and of the Pal22 estine Liberation Organization, who are stationed at the

23 United Nations in New York City to a 25-mile radius of

24 the United Nations headquarters building during any pe25 riod for which a certification described in section 620K(b)
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1 of the Foreign Assistance Act of 1961 (as added by section

2 2(b)(2) of this Act) is not in effect with respect to the

3 Palestinian Authority.

4 (b) EXCEPTION.—The travel restrictions described in

5 subsection (a) should not apply to the President of the

6 Palestinian Authority and his or her personal representa7 tives, provided that the President and his or her personal

8 representatives are not affiliated with Hamas or any other

9 foreign terrorist organization.

10 SEC. 7. PROHIBITION ON PALESTINIAN AUTHORITY REP11 RESENTATION IN THE UNITED STATES.

12 (a) PROHIBITION.—Notwithstanding any other provi13 sion of law, it shall be unlawful to establish or maintain

14 an office, headquarters, premises, or other facilities or es15 tablishments within the jurisdiction of the United States

16 at the behest or direction of, or with funds provided by,

17 the Palestinian Authority during any period for which a

18 certification described in section 620K(b) of the Foreign

19 Assistance Act of 1961 (as added by section 2(b)(2) of

20 this Act) is not in effect with respect to the Palestinian

21 Authority.

22 (b) ENFORCEMENT.—

23 (1) ATTORNEY GENERAL.—The Attorney Gen24 eral shall take the necessary steps and institute the
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1 necessary legal action to effectuate the policies and

2 provisions of subsection (a).

3 (2) RELIEF.—Any district court of the United

4 States for a district in which a violation of sub5 section (a) occurs shall have authority, upon petition

6 of relief by the Attorney General, to grant injunctive

7 and such other equitable relief as it shall deem nec8 essary to enforce the provisions of subsection (a).

9 (c) WAIVER.—Subsection (a) shall not apply if the

10 President determines and certifies to the appropriate con11 gressional committees that the establishment or mainte12 nance of an office, headquarters, premises, or other facili13 ties is vital to the national security interests of the United

14 States.

15 SEC. 8. INTERNATIONAL FINANCIAL INSTITUTIONS.

16 (a) REQUIREMENT.—The President should direct the

17 United States Executive Director at each international fi18 nancial institution to use the voice, vote, and influence of

19 the United States to prohibit assistance to the Palestinian

20 Authority (other than assistance described under sub21 section (b)) during any period for which a certification de22 scribed in section 620K(b) of the Foreign Assistance of

23 1961 (as added by section 2(b)(2) of this Act) is not in

24 effect with respect to the Palestinian Authority.
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1 (b) EXCEPTIONS.—The prohibition on assistance de2 scribed in subsection (a) should not apply with respect to

3 the following types of assistance:

4 (1) Assistance to meet food, water, medicine, or

5 sanitation needs, or other assistance to meet basic

6 human needs.

7 (2) Assistance to promote democracy, human

8 rights, freedom of the press, non-violence, reconcili9 ation, and peaceful co-existence, provided that such

10 assistance does not directly benefit Hamas or other

11 foreign terrorist organizations.

12 (c) DEFINITION.—In this section, the term ‘‘inter13 national financial institution’’ has the meaning given the

14 term in section 1701(c)(2) of the International Financial

15 Institutions Act (22 U.S.C. 262r(c)(2)).

16 SEC. 9. DIPLOMATIC CONTACTS WITH PALESTINIAN TER17 ROR ORGANIZATIONS.

18 No funds authorized or available to the Department

19 of State may be used for or by any officer or employee

20 of the United States Government to negotiate with mem21 bers or official representatives of Hamas, Palestinian Is22 lamic Jihad, the Popular Front for the Liberation of Pal23 estine, al-Aqsa Martyrs Brigade, or any other Palestinian

24 terrorist organization (except in emergency or humani25 tarian situations), unless and until such organization—
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1 (1) recognizes Israel’s right to exist;

2 (2) renounces the use of terrorism;

3 (3) dismantles the infrastructure in areas with4 in its jurisdiction necessary to carry out terrorist

5 acts, including the disarming of militias and the

6 elimination of all instruments of terror; and

7 (4) recognizes and accepts all previous agree8 ments and understandings between the State of

9 Israel and the Palestinian Authority.

10 SEC. 10. ISRAELI–PALESTINIAN PEACE, RECONCILIATION

11 AND DEMOCRACY FUND.

12 (a) ESTABLISHMENT OF FUND.—Not later than 60

13 days after the date of the enactment of this Act, the Sec14 retary of State shall establish a fund to be known as the

15 ‘‘Israeli-Palestinian Peace, Reconciliation and Democracy

16 Fund’’ (in this section referred to as the ‘‘Fund’’). The

17 purpose of the Fund shall be to support, primarily,

18 through Palestinian and Israeli organizations, the pro19 motion of democracy, human rights, freedom of the press,

20 and non-violence among Palestinians, and peaceful coex21 istence and reconciliation between Israelis and Palestin22 ians.

23 (b) ANNUAL REPORT.—Not later than 60 days after

24 the date of the enactment of this Act, and annually there25 after for so long as the Fund remains in existence, the
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1 Secretary of State shall submit to the appropriate congres2 sional committees a report on programs sponsored and

3 proposed to be sponsored by the Fund.

4 (c) AUTHORIZATION OF APPROPRIATIONS.—There is

5 authorized to be appropriated to the Secretary of State

6 $20,000,000 for fiscal year 2007 for purposes of the

7 Fund.

8 SEC. 11. REPORTING REQUIREMENT.

9 Not later than 90 days after the date of the enact10 ment of this Act, and annually thereafter, the Secretary

11 of State shall submit to the appropriate congressional

12 committees a report that—

13 (1) describes the steps that have been taken by

14 the United States Government to ensure that other

15 countries and international organizations, including

16 multilateral development banks, do not provide di17 rect assistance to the Palestinian Authority for any

18 period for which a certification described in section

19 620K(b) of the Foreign Assistance Act of 1961 (as

20 added by section 2(b)(2) of this Act) is not in effect

21 with respect to the Palestinian Authority; and

22 (2) identifies any countries and international

23 organizations, including multilateral development

24 banks, that are providing direct assistance to the
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1 Palestinian Authority during such a period, and de2 scribes the nature and amount of such assistance.

3 SEC. 12. DEFINITIONS.

4 In this Act:

5 (1) APPROPRIATE CONGRESSIONAL COMMIT6 TEES.—The term ‘‘appropriate congressional com7 mittees’’ means—

8 (A) the Committee on International Rela9 tions and the Committee on Appropriations of

10 the House of Representatives; and

11 (B) the Committee on Foreign Relations

12 and the Committee on Appropriations of the

13 Senate.

14 (2) PALESTINIAN AUTHORITY.—The term ‘‘Pal15 estinian Authority’’ has the meaning given the term

16 in section 620K(e)(2) of the Foreign Assistance Act

17 of 1961 (as added by section 2(b)(2) of this Act).

Passed the Senate June 23, 2006.

Attest:

Secretary.
109TH CONGRESS

2D SESSION S. 2370

AN ACT

To promote the development of democratic instituposes. the Palestinian Authority, and for other pur- tions in areas under the administrative control of