Title: Palestinian Partnership Fund Act of 2018
Policy area: International Affairs

Summary:
Palestinian Partnership Fund Act of 2018
This bill directs the Department of State to establish the Palestinian Partnership Fund to facilitate and finance:

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 3549 Introduced in Senate (IS)]

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115th CONGRESS
  2d Session
                                S. 3549

To establish the Palestinian Partnership Fund to promote joint economic 
      development and finance joint ventures between Palestinian 
entrepreneurs and companies in the United States, Israel, and countries 
in the Middle East to improve economic cooperation and people to people 
 exchanges to further shared community building, peaceful coexistence, 
    dialogue, and reconciliation between Israelis and Palestinians.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 4, 2018

    Mr. Coons (for himself, Mr. Graham, Mr. Kaine, and Mr. Gardner) 
introduced the following bill; which was read twice and referred to the 
                     Committee on Foreign Relations

_______________________________________________________________________

                                 A BILL


 
To establish the Palestinian Partnership Fund to promote joint economic 
      development and finance joint ventures between Palestinian 
entrepreneurs and companies in the United States, Israel, and countries 
in the Middle East to improve economic cooperation and people to people 
 exchanges to further shared community building, peaceful coexistence, 
    dialogue, and reconciliation between Israelis and Palestinians.

    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 Partnership Fund Act of 
2018''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) While the United States and its international allies 
        continue to support diplomatic and political negotiations 
        between the representatives of the parties to the Israeli-
        Palestinian conflict and others, in the long run, such efforts 
        require broad popular support among people to succeed. In order 
        to achieve lasting peace in the Middle East, the people who 
        live there must, over time, sustain any potential high-level 
        agreements.
            (2) Through support for joint economic initiatives and 
        people-to-people exchanges, millions of ordinary Israelis and 
        Palestinians affected by this conflict can assist in building 
        support for lasting peace.
            (3) The Palestinian technology sector is growing by 
        approximately 10 percent annually and, as of 2018, accounts for 
        approximately 6 percent of the Palestinian gross domestic 
        product.
            (4) In the Palestinian territories, each new job in the 
        technology sector contributes an estimated $98,000 in value 
        added per year, compared to $16,000 of value added per year, on 
        average, that is contributed by jobs in other sectors.
            (5) Palestinian entrepreneurs could greatly benefit from 
        more start-up experience and improved access to experienced 
        investors, professional networks, and foreign partners.

SEC. 3. SENSE OF CONGRESS.

    It is the sense of Congress that--
            (1) building a viable Palestinian economy is central to the 
        effort to preserve the possibility of a 2-state solution;
            (2) technology-led economic development in the Palestinian 
        territories will create much needed employment, stem ``brain 
        drain'' of Palestinian talent, and contribute to regional 
        stability;
            (3) cooperation between the Palestinian, United States, and 
        Israeli technology sectors will benefit the Palestinian, 
        American, and Israeli people and should be encouraged;
            (4) strengthening cooperation between the Palestinian 
        territories, the United States, and Israel in the areas of 
        applied technology industry and people-to-people exchanges 
        will--
                    (A) increase the bonds of friendship and 
                understanding between the people living in the 
                Palestinian territories and the people of the United 
                States and Israel; and
                    (B) advance the state of research and development 
                to the benefit of all parties; and
            (5) United States and international support for grassroots 
        people to people efforts aimed at shared economic growth, 
        reconciliation, and fostering tolerance can help serve as an 
        antidote to false propaganda by terrorist groups and the 
        growing issue of incitement.

SEC. 4. PALESTINIAN PARTNERSHIP FUND.

    (a) Establishment.--
            (1) In general.--The Secretary of State, in consultation 
        with the Secretary of Commerce, the Secretary of the Treasury, 
        and the Administrator of the United States Agency for 
        International Development, shall establish the Palestinian 
        Partnership Fund (referred to in this section as the ``Fund''), 
        which shall be funded with amounts appropriated pursuant to 
        section 5.
            (2) Contributions.--The Secretary of State, in consultation 
        with the Secretary of Commerce, the Secretary of the Treasury, 
        and the Administrator of the United States Agency for 
        International Development shall make every effort to seek 
        additional contributions for the Fund from Middle Eastern 
        countries, Europe, and the rest of the international community.
            (3) Governance.--The Majority Leader and the Minority 
        Leader in the Senate, and the Speaker and the Minority Leader 
        in the House of Representatives, shall each appoint a 
        representative to the governing entity of the Fund. The 
        governing entity of the Fund should oversee, and include 
        experts in, program integrity, monitoring, and evaluation and 
        assessment.
    (b) Purpose.--The purpose of the Fund is to facilitate and 
finance--
            (1) joint ventures in Israel, the West Bank, and Gaza, 
        including between Palestinian entrepreneurs and companies in 
        the United States, Israel, and countries in the Middle East to 
        improve economic cooperation in research and development and in 
        the technology industry; and
            (2) people to people exchanges to further shared community 
        building, peaceful coexistence, dialogue, and reconciliation 
        between Israelis and Palestinians.
    (c) Uses of Funds.--Amounts deposited into the Fund may be used--
            (1) to support joint research, economic development, and 
        technology industry activities of mutual benefit to the 
        Palestinian territories, the United States, and Israel;
            (2) to promote the integration of the Palestinian economy 
        into the international business system through private sector 
        engagement between Palestinian entrepreneurs and businesses and 
        the private sector in the United States, Europe, and the Middle 
        East (including Israel);
            (3) to fund joint project costs involving Palestinian 
        entrepreneurs and companies in the United States, Israel, and 
        countries in the Middle East;
            (4) to generate mutually beneficial cooperation between the 
        private sectors of the Palestinian, American, and Israeli high 
        tech industries, including start-ups and established 
        organizations; and
            (5) to support people to people exchanges, shared community 
        building, peaceful coexistence, and reconciliation between 
        Israelis and Palestinians.
    (d) Eligibility.--
            (1) National governments.--National governments are not 
        eligible to receive a grant from the Fund.
            (2) Geographic discrimination prohibited.--In selecting 
        grant recipients under this section, the administrators of the 
        Fund may not discriminate against any community or entity in 
        Israel, the West Bank, or Gaza due to its geographic location.
            (3) Limitations.--None of the funds made available pursuant 
        to this Act may be made available for assistance for any 
        individual or group that the administrators of the Fund, in 
        consultation with the heads of other relevant agencies of the 
        United States Government, determines to be involved in, or 
        advocating, terrorist activity or a member of a foreign 
        terrorist organization, as designated pursuant to section 219 
        of the Immigration and Nationality Act (8 U.S.C. 1189).
            (4) Savings provision.--Assistance from the Fund shall be 
        subject to all relevant laws relating to Federal Government 
        assistance.
    (e) Annual Report.--
            (1) In general.--At the end of each fiscal year in which 
        the United States Government makes any contribution to the Fund 
        under this section, the Secretary of State shall submit a 
        written report to Congress that describes the extent to which 
        the Fund, and United States contributions to the Fund, have 
        contributed--
                    (A) to promoting and supporting joint economic 
                development;
                    (B) to integrating the Palestinian economy into the 
                international business system; and
                    (C) to furthering contact, cooperation, dialogue, 
                and reconciliation between Israelis and Palestinians.
            (2) Matters to be included.--Each report required under 
        paragraph (1) shall include--
                    (A) information regarding--
                            (i) contributions pledged to, contributions 
                        (including donations from the private sector) 
                        received by, and projects funded by the Fund; 
                        and
                            (ii) the mechanisms established for 
                        transparency and accountability in the grant 
                        making and investment process;
                    (B) a description of the Fund's operations, 
                activities, budget, receipts, and expenditures for the 
                preceding 12-month period, including an audited report 
                of the Fund's finances, including statements of 
                financial position, operations, and cash flows, in 
                accordance with generally accepted government auditing 
                standards prescribed by the Comptroller General of the 
                United States;
                    (C) insights gleaned from what improves the 
                efficacy of people-to-people relationships; and
                    (D) a description of potential strategies for 
                getting to sustainability for civic institutions that 
                the Fund creates or supports, including novel financing 
                mechanisms.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated $100,000,000, for each of 
the fiscal years 2019 through 2024, which shall be used for United 
States contributions to the Fund established pursuant to section 4, and 
shall remain available until expended.
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