`[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4681 Reported in House (RH)]







                                                 Union Calendar No. 258
109th CONGRESS
  2d Session
                                H. R. 4681

                  [Report No. 109-462, Parts I and II]

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 1, 2006

Ms. Ros-Lehtinen (for herself, Mr. Lantos, Mr. Cantor, Mr. Chabot, Mr. 
 Ackerman, Mr. Engel, Mr. Pence, Mr. Weller, Ms. Harris, Mr. Burton of 
 Indiana, Mrs. McCarthy, Mr. Cardoza, Mr. Mack, Ms. Bean, Mr. Crowley, 
 Mr. Lynch, Mrs. Jo Ann Davis of Virginia, Mr. Chandler, Mr. Brown of 
South Carolina, Mr. McCaul of Texas, Mr. King of New York, Mr. Israel, 
  Ms. Berkley, Mr. Poe, Mr. Royce, Mrs. Blackburn, Mr. Tancredo, Mr. 
  Schiff, Mr. Sherman, and Mr. Nadler) introduced the following bill; 
which was referred to the Committee on International Relations, and in 
addition to the Committees on the Judiciary and Financial Services, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

                              May 11, 2006

    Reported from the Committee on International Relations with an 
                               amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                              May 11, 2006

  Referral to the Committees on Financial Services and the Judiciary 
 extended May 11, 2006, for a period ending not later than May 15, 2006

                              May 15, 2006

  Additional sponsors: Mr. Doolittle, Mr. McNulty, Mr. Reynolds, Mr. 
Wilson of South Carolina, Mr. Shays, Mr. Gerlach, Mr. Scott of Georgia, 
Mr. Terry, Mr. King of Iowa, Mr. Norwood, Mrs. Miller of Michigan, Mr. 
 McHenry, Mr. Cuellar, Mr. Price of Georgia, Mr. Hastings of Florida, 
   Mr. Lincoln Diaz-Balart of Florida, Mr. Culberson, Ms. Hart, Mrs. 
  Kelly, Mr. Kennedy of Minnesota, Mr. Sullivan, Mr. Hensarling, Mr. 
 Fitzpatrick of Pennsylvania, Mr. Souder, Mr. Fossella, Mr. Mario Diaz-
    Balart of Florida, Mr. Westmoreland, Mr. Davis of Florida, Mr. 
Ruppersberger, Mr. Blunt, Mrs. Maloney, Mrs. Northup, Mr. Ferguson, Mr. 
   Weldon of Pennsylvania, Mr. Sessions, Mr. Meeks of New York, Ms. 
Harman, Mr. Waxman, Mr. Johnson of Illinois, Mr. Young of Florida, Mr. 
 Butterfield, Mr. English of Pennsylvania, Mr. Kingston, Mr. Shaw, Mr. 
Bonner, Mr. Platts, Mr. Deal of Georgia, Mr. Holden, Mr. Etheridge, Mr. 
LoBiondo, Mr. Saxton, Mr. Marchant, Mr. Stearns, Mr. Sensenbrenner, Ms. 
  Schakowsky, Mr. Tom Davis of Virginia, Mr. Ford, Mr. Alexander, Mr. 
Linder, Mr. Berman, Mr. Garrett of New Jersey, Mr. Gonzalez, Mr. Ross, 
Mr. Lucas, Ms. Ginny Brown-Waite of Florida, Mr. Higgins, Mr. Boswell, 
Mr. Matheson, Mrs. Schmidt, Mr. Cardin, Mr. Murphy, Mrs. Emerson, Miss 
  McMorris, Mrs. Lowey, Mr. Bartlett of Maryland, Mr. Strickland, Mr. 
 Wynn, Mr. Porter, Mr. Barrow, Mr. Davis of Kentucky, Mr. Simmons, Mr. 
  Kline, Mr. Dent, Mrs. Napolitano, Ms. Corrine Brown of Florida, Mr. 
  Putnam, Mr. Foley, Mr. Gordon, Ms. Foxx, Mr. Rothman, Mr. Brown of 
Ohio, Ms. Schwartz of Pennsylvania, Mr. Pombo, Ms. Matsui, Ms. Linda T. 
    Sanchez of California, Mr. Feeney, Mr. Gene Green of Texas, Mr. 
    Andrews, Mr. Nunes, Mr. Forbes, Mr. Hastings of Washington, Mr. 
Conaway, Mr. Rush, Mr. McIntyre, Mr. Campbell of California, Mr. Bishop 
    of Georgia, Ms. Wasserman Schultz, Mr. Wexler, Mrs. Myrick, Mr. 
Gohmert, Mr. Shadegg, Mr. Larsen of Washington, Mr. Bonilla, Mr. Akin, 
Mr. Weldon of Florida, Mr. Renzi, Mr. Owens, Mr. Mica, Mr. Nussle, Mr. 
 Jindal, Mrs. Capito, Mrs. Bono, Mr. Tiberi, Mr. McHugh, Mr. Kirk, Mr. 
  Simpson, Mr. Hayworth, Mr. Gingrey, Mr. Turner, Mr. Visclosky, Mr. 
Rangel, Mr. Towns, Mr. Davis of Tennessee, Mr. Crenshaw, Mrs. Jones of 
Ohio, Mr. Keller, Mr. Thompson of California, Mr. Smith of New Jersey, 
   Mr. Neugebauer, Mr. Aderholt, Mr. Graves, Mr. Bishop of Utah, Mr. 
  Pickering, Mr. Peterson of Pennsylvania, Mrs. Drake, Mr. Boren, Mr. 
 Green of Wisconsin, Mr. Kuhl of New York, Mr. Ryan of Wisconsin, Mr. 
  Edwards, Mr. Filner, Mr. Baker, Mr. Holt, Mr. Cole of Oklahoma, Mr. 
Burgess, Mr. Hefley, Mr. Bishop of New York, Mr. Brady of Pennsylvania, 
Mr. Michaud, Mr. Rogers of Michigan, Mr. Moore of Kansas, Mr. Wamp, Mr. 
Camp of Michigan, Mr. Cooper, Mr. Coble, Mr. Evans, Mr. Miller of North 
Carolina, Mr. Beauprez, Mr. Melancon, Mr. Inglis of South Carolina, Mr. 
 Costa, Mrs. Musgrave, Mr. Ryan of Ohio, Mr. Schwarz of Michigan, Mr. 
 Fattah, Mr. Cramer, Mr. Al Green of Texas, Mr. McCotter, Mr. Davis of 
 Alabama, Mr. Frelinghuysen, Mr. Salazar, Mr. Pastor, Mr. Thompson of 
Mississippi, Mr. Hoyer, Mr. Pallone, Ms. Granger, Mr. Levin, Mr. Flake, 
 Mr. Otter, Mr. Wu, Mr. Shimkus, Mr. Stupak, Mr. Carnahan, Mr. Bachus, 
Mr. Everett, Mr. Meek of Florida, Mr. Rogers of Alabama, Mr. Franks of 
 Arizona, Mr. Berry, Mr. Shuster, Ms. Herseth, Mr. Chocola, Mr. Hayes, 
   Mr. Van Hollen, Mr. Lewis of California, Mr. Reyes, Mr. Young of 
   Alaska, Mr. Walsh, Mr. Lewis of Georgia, Mr. Brady of Texas, Mr. 
 Kennedy of Rhode Island, Mr. Emanuel, Ms. Pryce of Ohio, Mr. Udall of 
Colorado, Mr. Cummings, Mr. Baca, Mr. Latham, Mr. Herger, Mr. Udall of 
New Mexico, Mr. Bilirakis, Mr. Rehberg, Mr. Gutknecht, Mr. Osborne, Mr. 
  Radanovich, Mr. Cannon, Mr. Barrett of South Carolina, Mr. Smith of 
Texas, Ms. Slaughter, Mr. Pascrell, Mr. Wicker, Mr. Ryun of Kansas, Mr. 
Knollenberg, Mr. Boozman, Mr. Reichert, Ms. DeLauro, Mr. Gallegly, Mr. 
   Neal of Massachusetts, Ms. Pelosi, Ms. DeGette, Mr. Lipinski, Mr. 
Daniel E. Lungren of California, Mr. Davis of Illinois, Mr. Tanner, Mr. 
   Ehlers, Ms. Bordallo, Mr. Boustany, Mr. McCrery, Mr. Cleaver, Mr. 
Jefferson, Mr. Lewis of Kentucky, Mrs. Davis of California, Mr. McKeon, 
  Mr. Goodlatte, Mr. Spratt, Mr. Miller of Florida, Mr. Langevin, Mr. 
  Carter, Ms. Eddie Bernice Johnson of Texas, Mr. Gibbons, Mr. Honda, 
 Mrs. Biggert, Mr. Hulshof, Mr. Doyle, Mrs. Wilson of New Mexico, and 
                         Mr. Scott of Virginia

                              May 15, 2006

     Reported from the Committee on the Judiciary with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                           in boldface roman]

                              May 15, 2006

Committee on Financial Services discharged; committed to the Committee 
 of the Whole House on the State of the Union and ordered to be printed
    [For text of introduced bill, see copy of bill as introduced on 
                           February 1, 2006]

_______________________________________________________________________

                                 A BILL


 
 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,

SEC. 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 violence;
            (3) to urge members of the international community to avoid 
        contact with and refrain from financially supporting the 
        terrorist organization Hamas or a Hamas-controlled Palestinian 
        Authority until Hamas agrees to recognize Israel, renounce 
        violence, disarm, and accept prior agreements, including the 
        Roadmap;
            (4) to promote the emergence of a democratic Palestinian 
        governing authority that--
                    (A) denounces and combats terrorism;
                    (B) has agreed to and is taking action to disarm 
                and dismantle any terrorist agency, network, or 
                facility;
                    (C) has agreed to work to eliminate anti-Israel and 
                anti-Semitic incitement and the commemoration of 
                terrorists in Palestinian society;
                    (D) has agreed to respect the sovereignty of its 
                neighbors;
                    (E) acknowledges, respects, and upholds the human 
                rights of all people;
                    (F) implements the rule of law, good governance, 
                and democratic practices, including conducting free, 
                fair, and transparent elections in compliance with 
                international standards;
                    (G) ensures institutional and financial 
                transparency and accountability; and
                    (H) has agreed to recognize the State of Israel as 
                an independent, sovereign, Jewish, democratic state; 
                and
            (5) to continue to support assistance to the Palestinian 
        people.
    (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.--Except as provided in subsection (e), assistance 
may be provided under this Act to the Palestinian Authority only during 
a period for which a certification described in subsection (b) is in 
effect.
    ``(b) Certification.--A certification described in this subsection 
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 controlled by a foreign terrorist 
        organization and no member of a foreign terrorist organization 
        serves in a senior policy making position in a ministry, 
        agency, or instrumentality of the Palestinian Authority;
            ``(2) the Palestinian Authority has--
                    ``(A) publicly acknowledged Israel's right to exist 
                as a Jewish state; and
                    ``(B) recommitted itself and is adhering to all 
                previous agreements and understandings by the Palestine 
                Liberation Organization and the Palestinian Authority 
                with the Government of the United States, the 
                Government of Israel, and 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
            ``(3) the Palestinian Authority has taken effective steps 
        and made demonstrable progress toward--
                    ``(A) completing the process of purging from its 
                security services individuals with ties to terrorism;
                    ``(B) dismantling all terrorist infrastructure, 
                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-Israel incitement in 
                Palestinian Authority-controlled electronic and print 
                media and in schools, mosques, and other institutions 
                it controls, and replacing these materials, including 
                textbooks, with materials that promote tolerance, 
                peace, 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 requirements contained 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 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) Exceptions.--
            ``(1) In general.--Subsection (a) shall not apply with 
        respect to the following:
                    ``(A) Assistance to independent elections 
                commissions.--Assistance to any Palestinian independent 
                election commission if the President transmits to 
                Congress a certification that contains a determination 
                of the President that--
                            ``(i) no member of such commission is a 
                        member of, affiliated with, or appointed by a 
                        foreign terrorist organization; and
                            ``(ii) each member of such commission is 
                        independent of the influence of any political 
                        party or movement.
                    ``(B) Assistance to support the middle east peace 
                process.--Assistance to the Office of the President of 
                the Palestinian Authority for non-security expenses 
                directly related to facilitating a peaceful resolution 
                of the Israeli-Palestinian conflict or for the personal 
                security detail of the President of the Palestinian 
                Authority if the President transmits to Congress a 
                certification that contains a determination of the 
                President that--
                            ``(i) such assistance is critical to 
                        facilitating a peaceful resolution of the 
                        Israeli-Palestinian conflict;
                            ``(ii) the President of the Palestinian 
                        Authority is not a member of or affiliated with 
                        a foreign terrorist organization and has 
                        rejected the use of terrorism to resolve the 
                        Israeli-Palestinian conflict;
                            ``(iii) such assistance will not be used to 
                        provide funds to any individual who is a member 
                        of or affiliated with a foreign terrorist 
                        organization or who has not rejected the use of 
                        terrorism to resolve the Israeli-Palestinian 
                        conflict; and
                            ``(iv) such assistance will not be 
                        retransferred to any other entity within or 
                        outside of the Palestinian Authority except as 
                        payment for legal goods or services rendered.
            ``(2) Additional requirements.--Assistance described in 
        paragraph (1) may be provided only if the President--
                    ``(A) determines that the provision of such 
                assistance is important to the national security 
                interests 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).
            ``(3) Definition.--In this subsection, 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.
    ``(f) Definitions.--In this section:
            ``(1) 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)).
            ``(2) 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) Applicability to Unexpended Funds.--Section 620K of the Foreign 
Assistance Act of 1961, as added by subsection (b), applies with 
respect to unexpended funds obligated for assistance under the Foreign 
Assistance Act of 1961 to the Palestinian Authority before the date of 
the enactment of this Act.
    (d) Report by Comptroller General.--Not later than 180 days after 
the date of the enactment of this Act, the Comptroller General of the 
United States shall submit to the appropriate congressional committees 
a report that contains a review of the proposed procedures by which 
United States assistance to the Palestinian Authority under the Foreign 
Assistance Act of 1961 will be audited by the Department of State, the 
United States Agency for International Development, and all other 
relevant departments and agencies of the Government of the United 
States and any recommendations for improvement of such procedures.
    (e) Sense of Congress.--It is the sense of Congress that the 
President should be guided by the principles and procedures described 
in section 620K of the Foreign Assistance Act of 1961, as added by 
subsection (b), in providing direct assistance to the Palestinian 
Authority under any provision of law other than the Foreign Assistance 
Act of 1961.

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) of this 
Act, 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.--Except as provided in subsection (d), 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) of this Act is in effect with respect to 
the Palestinian Authority.
    ``(b) Marking Requirement.--Assistance provided under this Act to 
nongovernmental organizations for the West Bank and Gaza shall be 
marked as assistance from the Government of the United States unless 
the Secretary of State or the Administrator of the United States Agency 
for International Development determines that such marking will 
endanger the lives or safety of persons delivering or receiving such 
assistance or would have a material adverse effect on the 
implementation of such assistance.
    ``(c) 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.
    ``(d) Exceptions.--Subsection (a) shall not apply with respect to 
the following:
            ``(1) Assistance to meet basic human health needs.--The 
        provision of food, water, medicine, sanitation services, or 
        other assistance to directly meet basic human health needs.
            ``(2) Other types of assistance.--The provision of any 
        other type of assistance if the President--
                    ``(A) determines that the provision of such 
                assistance will further the national security interests 
                of the United States; and
                    ``(B) not less than 25 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) and an 
                        explanation of how failure to provide the 
                        proposed assistance would be inconsistent with 
                        furthering the national security interests of 
                        the United States.
            ``(3) Definition.--In this subsection, 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.''.
    (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 
        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 any fiscal 
        year 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 or the families of 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 independent 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 
                to ensure, among other things, compliance with this 
                subsection.
                    (B) Audits by inspector general of usaid.--Of the 
                amounts available for any fiscal year 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.
    (c) Sense of Congress.--It is the sense of Congress that the 
President should be guided by the principles and procedures described 
in section 620L of the Foreign Assistance Act of 1961, as added by 
subsection (a), in providing assistance to nongovernmental 
organizations for the West Bank and Gaza under any provision of law 
other than the Foreign Assistance Act of 1961.

SEC. 4. UNITED NATIONS AGENCIES AND PROGRAMS.

    (a) Review and Report.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the President shall--
                    (A) conduct an audit of the functions of the 
                entities specified in paragraph (2); and
                    (B) transmit to the appropriate congressional 
                committees a report containing recommendations for the 
                elimination of such entities and efforts that are 
                duplicative or fail to ensure balance in the approach 
                of the United Nations to Israeli-Palestinian issues.
            (2) Entities specified.--The entities referred to in 
        paragraph (1) are the following:
                    (A) The United Nations Division for Palestinian 
                Rights.
                    (B) The Committee on the Exercise of the 
                Inalienable Rights of the Palestinian People.
                    (C) The United Nations Special Coordinator for the 
                Middle East Peace Process and Personal Representative 
                to the Palestine Liberation Organization and the 
                Palestinian Authority.
                    (D) The NGO Network on the Question of Palestine.
                    (E) The Special Committee to Investigate Israeli 
                Practices Affecting the Human Rights of the Palestinian 
                People and Other Arabs of the Occupied Territories.
                    (F) Any other entity the Secretary determines 
                results in duplicative efforts or funding or fails to 
                ensure balance in the approach to Israeli-Palestinian 
                issues.
    (b) Implementation of Recommendations by Permanent 
Representative.--
            (1) In general.--The United States Permanent Representative 
        to the United Nations shall use the voice, vote, and influence 
        of the United States at the United Nations to seek the 
        implementation of the recommendations contained in the report 
        required under subsection (a)(1)(B).
            (2) Withholding of funds.--Until such recommendations have 
        been implemented, the Secretary of State is authorized to 
        withhold from United States contributions to the regular 
        assessed budget of the United Nations for a biennial period 
        amounts that are proportional to the percentage of such budget 
        that are expended for such entities.
    (c) GAO Audit.--The Comptroller General shall conduct an audit of 
the status of the implementation of the recommendations contained in 
the report required under subsection (a)(1)(B).
    (d) Withholding of Funds With Respect to the Palestinian 
Authority.--The Secretary of State is authorized to withhold from 
United States contributions to the regular assessed budget of the 
United Nations for a biennial period amounts that are proportional to 
the percentage of such budget that are expended for any United Nations 
affiliated or specialized agency that provides assistance directly to 
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.

SEC. 5. 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. 6. DENIAL OF VISAS FOR OFFICIALS OF THE PALESTINIAN AUTHORITY.

    (a) In General.--A visa shall not be issued to any alien who is an 
official of, affiliated with, or serving as a representative of 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) Waiver.--Subsection (a) shall not apply--
            (1) if the President determines and certifies to the 
        appropriate congressional committees, on a case-by-case basis, 
        that the issuance of a visa to an alien described in such 
        subsection is important to the national security interests of 
        the United States; or
            (2) with respect to visas issued in connection with United 
        States obligations under the Act of August 4, 1947 (61 Stat. 
        756) (commonly known as the ``United Nations Headquarters 
        Agreement Act'').

SEC. 7. TRAVEL RESTRICTIONS ON OFFICIALS AND REPRESENTATIVES OF THE 
              PALESTINIAN AUTHORITY AND THE PALESTINE LIBERATION 
              ORGANIZATION STATIONED AT THE UNITED NATIONS IN NEW YORK 
              CITY.

    The President shall 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.

SEC. 8. 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 or the Palestine Liberation 
Organization 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.--
            (1) Authority.--The President may waive the application of 
        subsection (a) for a period of 180 days if the President 
        determines and certifies to the appropriate congressional 
        committees that such waiver is vital to the national security 
        interests of the United States and provides an explanation of 
        how the failure to waive the application of subsection (a) 
        would be inconsistent with the vital national security 
        interests of the United States.
            (2) Renewal.--The President may renew the waiver described 
        in paragraph (1) for successive 180-day periods if the 
        President makes the determination and certification described 
        in such paragraph for each such period.

SEC. 9. INTERNATIONAL FINANCIAL INSTITUTIONS.

    (a) United States Policy.--It shall be the policy of the United 
States that the United States Executive Director at each international 
financial institution shall use the voice, vote, and influence of the 
United States to prohibit assistance to the Palestinian Authority 
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) 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.

SEC. 10. DIPLOMATIC CONTACTS WITH PALESTINIAN TERROR ORGANIZATIONS.

    It shall be the policy of the United States that no officer or 
employee of the United States Government shall negotiate or have 
substantive contacts 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, unless and until such organization--
            (1) recognizes Israel's right to exist;
            (2) renounces the use of terrorism;
            (3) dismantles the infrastructure 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 Palestine 
        Liberation Organization and the Palestinian Authority.

SEC. 11. 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).

SEC. 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 violence;
            (3) to urge members of the international community to avoid 
        contact with and refrain from financially supporting the 
        terrorist organization Hamas or a Hamas-controlled Palestinian 
        Authority until Hamas agrees to recognize Israel, renounce 
        violence, disarm, and accept prior agreements, including the 
        Roadmap;
            (4) to promote the emergence of a democratic Palestinian 
        governing authority that--
                    (A) denounces and combats terrorism;
                    (B) has agreed to and is taking action to disarm 
                and dismantle any terrorist agency, network, or 
                facility;
                    (C) has agreed to work to eliminate anti-Israel and 
                anti-Semitic incitement and the commemoration of 
                terrorists in Palestinian society;
                    (D) has agreed to respect the sovereignty of its 
                neighbors;
                    (E) acknowledges, respects, and upholds the human 
                rights of all people;
                    (F) implements the rule of law, good governance, 
                and democratic practices, including conducting free, 
                fair, and transparent elections in compliance with 
                international standards;
                    (G) ensures institutional and financial 
                transparency and accountability; and
                    (H) has agreed to recognize the State of Israel as 
                an independent, sovereign, Jewish, democratic state; 
                and
            (5) to continue to support assistance to the Palestinian 
        people.
    (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.--Except as provided in subsection (e), assistance 
may be provided under this Act to the Palestinian Authority only during 
a period for which a certification described in subsection (b) is in 
effect.
    ``(b) Certification.--A certification described in this subsection 
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 controlled by a foreign terrorist 
        organization and no member of a foreign terrorist organization 
        serves in a senior policy making position in a ministry, 
        agency, or instrumentality of the Palestinian Authority;
            ``(2) the Palestinian Authority has--
                    ``(A) publicly acknowledged Israel's right to exist 
                as a Jewish state; and
                    ``(B) recommitted itself and is adhering to all 
                previous agreements and understandings by the Palestine 
                Liberation Organization and the Palestinian Authority 
                with the Government of the United States, the 
                Government of Israel, and 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
            ``(3) the Palestinian Authority has taken effective steps 
        and made demonstrable progress toward--
                    ``(A) completing the process of purging from its 
                security services individuals with ties to terrorism;
                    ``(B) dismantling all terrorist infrastructure, 
                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-Israel incitement in 
                Palestinian Authority-controlled electronic and print 
                media and in schools, mosques, and other institutions 
                it controls, and replacing these materials, including 
                textbooks, with materials that promote tolerance, 
                peace, 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 requirements contained 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 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) Exceptions.--
            ``(1) In general.--Subsection (a) shall not apply with 
        respect to the following:
                    ``(A) Assistance to independent elections 
                commissions.--Assistance to any Palestinian independent 
                election commission if the President transmits to 
                Congress a certification that contains a determination 
                of the President that--
                            ``(i) no member of such commission is a 
                        member of, affiliated with, or appointed by a 
                        foreign terrorist organization; and
                            ``(ii) each member of such commission is 
                        independent of the influence of any political 
                        party or movement.
                    ``(B) Assistance to support the middle east peace 
                process.--Assistance to the Office of the President of 
                the Palestinian Authority for non-security expenses 
                directly related to facilitating a peaceful resolution 
                of the Israeli-Palestinian conflict or for the personal 
                security detail of the President of the Palestinian 
                Authority if the President transmits to Congress a 
                certification that contains a determination of the 
                President that--
                            ``(i) such assistance is critical to 
                        facilitating a peaceful resolution of the 
                        Israeli-Palestinian conflict;
                            ``(ii) the President of the Palestinian 
                        Authority is not a member of or affiliated with 
                        a foreign terrorist organization and has 
                        rejected the use of terrorism to resolve the 
                        Israeli-Palestinian conflict;
                            ``(iii) such assistance will not be used to 
                        provide funds to any individual who is a member 
                        of or affiliated with a foreign terrorist 
                        organization or who has not rejected the use of 
                        terrorism to resolve the Israeli-Palestinian 
                        conflict; and
                            ``(iv) such assistance will not be 
                        retransferred to any other entity within or 
                        outside of the Palestinian Authority except as 
                        payment for legal goods or services rendered.
            ``(2) Additional requirements.--Assistance described in 
        paragraph (1) may be provided only if the President--
                    ``(A) determines that the provision of such 
                assistance is important to the national security 
                interests 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).
            ``(3) Definition.--In this subsection, 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.
    ``(f) Definitions.--In this section:
            ``(1) 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)).
            ``(2) 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) Applicability to Unexpended Funds.--Section 620K of the Foreign 
Assistance Act of 1961, as added by subsection (b), applies with 
respect to unexpended funds obligated for assistance under the Foreign 
Assistance Act of 1961 to the Palestinian Authority before the date of 
the enactment of this Act.
    (d) Report by Comptroller General.--Not later than 180 days after 
the date of the enactment of this Act, the Comptroller General of the 
United States shall submit to the appropriate congressional committees 
a report that contains a review of the proposed procedures by which 
United States assistance to the Palestinian Authority under the Foreign 
Assistance Act of 1961 will be audited by the Department of State, the 
United States Agency for International Development, and all other 
relevant departments and agencies of the Government of the United 
States and any recommendations for improvement of such procedures.
    (e) Sense of Congress.--It is the sense of Congress that the 
President should be guided by the principles and procedures described 
in section 620K of the Foreign Assistance Act of 1961, as added by 
subsection (b), in providing direct assistance to the Palestinian 
Authority under any provision of law other than the Foreign Assistance 
Act of 1961.

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) of this 
Act, 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.--Except as provided in subsection (d), 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) of this Act is in effect with respect to 
the Palestinian Authority.
    ``(b) Marking Requirement.--Assistance provided under this Act to 
nongovernmental organizations for the West Bank and Gaza shall be 
marked as assistance from the Government of the United States unless 
the Secretary of State or the Administrator of the United States Agency 
for International Development determines that such marking will 
endanger the lives or safety of persons delivering or receiving such 
assistance or would have a material adverse effect on the 
implementation of such assistance.
    ``(c) 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.
    ``(d) Exceptions.--Subsection (a) shall not apply with respect to 
the following:
            ``(1) Assistance to meet basic human health needs.--The 
        provision of food, water, medicine, sanitation services, or 
        other assistance to directly meet basic human health needs.
            ``(2) Other types of assistance.--The provision of any 
        other type of assistance if the President--
                    ``(A) determines that the provision of such 
                assistance will further the national security interests 
                of the United States; and
                    ``(B) not less than 25 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) and an 
                        explanation of how failure to provide the 
                        proposed assistance would be inconsistent with 
                        furthering the national security interests of 
                        the United States.
            ``(3) Definition.--In this subsection, 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.''.
    (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 
        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 any fiscal 
        year 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 or the families of 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 independent 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 
                to ensure, among other things, compliance with this 
                subsection.
                    (B) Audits by inspector general of usaid.--Of the 
                amounts available for any fiscal year 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.
    (c) Sense of Congress.--It is the sense of Congress that the 
President should be guided by the principles and procedures described 
in section 620L of the Foreign Assistance Act of 1961, as added by 
subsection (a), in providing assistance to nongovernmental 
organizations for the West Bank and Gaza under any provision of law 
other than the Foreign Assistance Act of 1961.

SEC. 4. UNITED NATIONS AGENCIES AND PROGRAMS.

    (a) Review and Report.--
            (1) In general.--Not later than 60 days after the date of 
        the enactment of this Act, the President shall--
                    (A) conduct an audit of the functions of the 
                entities specified in paragraph (2); and
                    (B) transmit to the appropriate congressional 
                committees a report containing recommendations for the 
                elimination of such entities and efforts that are 
                duplicative or fail to ensure balance in the approach 
                of the United Nations to Israeli-Palestinian issues.
            (2) Entities specified.--The entities referred to in 
        paragraph (1) are the following:
                    (A) The United Nations Division for Palestinian 
                Rights.
                    (B) The Committee on the Exercise of the 
                Inalienable Rights of the Palestinian People.
                    (C) The United Nations Special Coordinator for the 
                Middle East Peace Process and Personal Representative 
                to the Palestine Liberation Organization and the 
                Palestinian Authority.
                    (D) The NGO Network on the Question of Palestine.
                    (E) The Special Committee to Investigate Israeli 
                Practices Affecting the Human Rights of the Palestinian 
                People and Other Arabs of the Occupied Territories.
                    (F) Any other entity the Secretary determines 
                results in duplicative efforts or funding or fails to 
                ensure balance in the approach to Israeli-Palestinian 
                issues.
    (b) Implementation of Recommendations by Permanent 
Representative.--
            (1) In general.--The United States Permanent Representative 
        to the United Nations shall use the voice, vote, and influence 
        of the United States at the United Nations to seek the 
        implementation of the recommendations contained in the report 
        required under subsection (a)(1)(B).
            (2) Withholding of funds.--Until such recommendations have 
        been implemented, the Secretary of State is authorized to 
        withhold from United States contributions to the regular 
        assessed budget of the United Nations for a biennial period 
        amounts that are proportional to the percentage of such budget 
        that are expended for such entities.
    (c) GAO Audit.--The Comptroller General shall conduct an audit of 
the status of the implementation of the recommendations contained in 
the report required under subsection (a)(1)(B).
    (d) Withholding of Funds With Respect to the Palestinian 
Authority.--The Secretary of State is authorized to withhold from 
United States contributions to the regular assessed budget of the 
United Nations for a biennial period amounts that are proportional to 
the percentage of such budget that are expended for any United Nations 
affiliated or specialized agency that provides assistance directly to 
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.

SEC. 5. 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. 6. DENIAL OF VISAS FOR OFFICIALS OF THE PALESTINIAN AUTHORITY.

    (a) In General.--A visa shall not be issued to any alien who is an 
official of, affiliated with, or serving as a representative of 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) Waiver.--Subsection (a) shall not apply--
            (1) if the President determines and certifies to the 
        appropriate congressional committees, on a case-by-case basis, 
        that the issuance of a visa to an alien described in such 
        subsection is important to the national security interests of 
        the United States; or
            (2) with respect to visas issued in connection with United 
        States obligations under the Act of August 4, 1947 (61 Stat. 
        756) (commonly known as the ``United Nations Headquarters 
        Agreement Act'').

SEC. 7. TRAVEL RESTRICTIONS ON OFFICIALS AND REPRESENTATIVES OF THE 
              PALESTINIAN AUTHORITY AND THE PALESTINE LIBERATION 
              ORGANIZATION STATIONED AT THE UNITED NATIONS IN NEW YORK 
              CITY.

    The President shall 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.

SEC. 8. 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 or the Palestine Liberation 
Organization 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), 
        including steps necessary to apply the policies and provisions 
        of subsection (a) to the Permanent Observer Mission of 
        Palestine to the United Nations.
            (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.--
            (1) Authority.--The President may waive the application of 
        subsection (a) for a period of 180 days if the President 
        determines and certifies to the appropriate congressional 
        committees that such waiver is vital to the national security 
        interests of the United States and provides an explanation of 
        how the failure to waive the application of subsection (a) 
        would be inconsistent with the vital national security 
        interests of the United States.
            (2) Renewal.--The President may renew the waiver described 
        in paragraph (1) for successive 180-day periods if the 
        President makes the determination and certification described 
        in such paragraph for each such period.

SEC. 9. INTERNATIONAL FINANCIAL INSTITUTIONS.

    (a) United States Policy.--It shall be the policy of the United 
States that the United States Executive Director at each international 
financial institution shall use the voice, vote, and influence of the 
United States to prohibit assistance to the Palestinian Authority 
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) 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.

SEC. 10. DIPLOMATIC CONTACTS WITH PALESTINIAN TERROR ORGANIZATIONS.

    It shall be the policy of the United States that no officer or 
employee of the United States Government shall negotiate or have 
substantive contacts 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, unless and until such organization--
            (1) recognizes Israel's right to exist;
            (2) renounces the use of terrorism;
            (3) dismantles the infrastructure 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 Palestine 
        Liberation Organization and the Palestinian Authority.

SEC. 11. 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).
                                                 Union Calendar No. 258

109th CONGRESS

  2d Session

                               H. R. 4681

                  [Report No. 109-462, Parts I and II]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                              May 15, 2006

     Reported from the Committee on the Judiciary with an amendment

                              May 15, 2006

Committee on Financial Services discharged; committed to the Committee 
 of the Whole House on the State of the Union and ordered to be printed`