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—
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‘‘(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
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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
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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, nonviolence, 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
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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.
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(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
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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
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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.
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(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.