[Congressional Record (Bound Edition), Volume 152 (2006), Part 2]
[Senate]
[Pages 2702-2708]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. SPECTER (for himself, Mr. Leahy, Ms. Murkowski, Mr. 
        Sununu, Mr. Feingold, Mr. Craig, Mr. Hagel, Mr. Durbin, Mr. 
        Salazar, Mrs. Feinstein, Mr. Obama, and Mr. Kerry):
  S. 2369. A bill to require a more reasonable period for delayed-
notice search warrants, to provide enhanced judicial review of FISA 
orders and national security letters, to require an enhanced factual 
basis for a FISA order, and to create national security letter sunset 
provisions; to the Committee on the Judiciary.
  Mr. SPECTER. Mr. President, I have sought recognition to offer 
legislation which would amplify the PATRIOT Act, which we expect to be 
passed by the House of Representatives tomorrow, with these amendments 
to restore the provisions of the PATRIOT Act to the provisions of the 
Senate bill which was passed unanimously by the Judiciary Committee on 
which the Presiding Officer sits, as do I, and was then adopted by 
unanimous consent by the Senate.
  The PATRIOT Act has had a complex procedural history where the House 
passed a version which was substantially different from the Senate 
version. Then we hammered out a conference report which, in my view, 
was an acceptable compromise. It did not have all of the provisions 
which I would have preferred. It did not have the provisions of the 
Senate bill. But in a bicameral legislature, we learn to work with the 
art of the possible. That was accommodation.
  We worked closely with Chairman Sensenbrenner in the House and 
crafted a bill which was acceptable. There were certain key concessions 
made to the Senate which I believed were important, perhaps 
indispensable, the leading one being the sunset provision which was 
finally established at 4 years. That had been the provision in the 
Senate bill. And by sunset, for anyone who may be watching on C-SPAN2, 
that is the provision which terminates the bill, and then it has to 
come back to Congress for reevaluation to see if we want to give the 
expanded powers to law enforcement officials. The House bill had 10 
years; the Senate bill had 4 years. The House wanted a compromise at 7 
years, and the Senate held fast. And the compromise was reached so we 
finally put a provision in at 4 years.
  The PATRIOT Act was passed shortly after the terrible tragedies of 9/
11, when the United States was victimized by a terrorist attack. It was 
an effort to give law enforcement officials more power to deal with 
terrorism. There is always a balance to be struck between civil 
liberties on the one hand and sufficient power for law enforcement on 
the other. There came into a coalition representatives of both extreme 
ends of the political spectrum, the so-called far left, the so-called 
far right, joining together with the insistence on more civil 
liberties. It seemed to me that the point was well taken.
  The legislation I am introducing today, I introduce on behalf of 
myself, Senators Leahy, Murkowski, Sununu, Feingold, Craig, Hagel, 
Durbin, Salazar, Feinstein, Obama, and Kerry. The cosponsors are the 
four Republicans who did not vote for cloture when the bill was before 
the Senate. They had decided not to vote to cut off debate, which might 
have given us the leverage at that time to pass the conference report, 
but insisted on some

[[Page 2703]]

modifications. With the leadership of Senator Sununu, those 
modifications have been enacted in a companion bill which is going to 
the House of Representatives for House action tomorrow. It is my 
expectation that the legislation will be passed. There is an enrolling 
ceremony set by the Speaker of the House and the majority leader for 
Wednesday morning, so that is a pretty good sign that we are en route 
to having the PATRIOT Act enacted.
  I do not think that ought to be the ending point. That is why I am 
introducing this supplemental legislation today. What this legislation 
does is reinstate provisions of the original Senate-passed bill. For 
example, on the delayed notice search warrants, the House bill had 
called for 180 days. The Senate bill had called for 7 days' notice. The 
conference report compromised out at 30 days, which I thought was 
acceptable, while not as good as I would have liked it. So in this new 
bill, the delayed notice provision is set at 7 days. That means that 
when a search warrant is authorized, where the subject of the search 
warrant is not told--ordinarily if you have a search and seizure, law 
enforcement officials come in and in broad daylight make the search and 
seizure. The resident, the owner of the residence knows about it. But a 
delayed notice search warrant is structured so that the recipient does 
not know about it, where there is cause shown that the investigation 
would be impeded if the recipient were to be told at that time. This 
cuts the time to 7 days.
  There had been considerable controversy over the provisions of 
section 215 where the Senate bill had a three-part test, and a fourth 
provision was added to the conference report where the judge had the 
discretion to grant the order if there was adequate showing in the 
opinion of the court to pursue a terrorist investigation. But the new 
bill comes back to the three-part test of the original Senate bill so 
the records sought must, first, pertain to a foreign power or an agent 
of a foreign power; second, are relevant to the activities of a 
suspected agent of a foreign power who is the subject of an authorized 
investigation; or, three, pertain to an individual in contact with the 
suspected agent of a foreign power.
  The third provision provides for a judicial review of national 
security letters. It would eliminate the conclusive presumption with 
respect to national security letters that the court would automatically 
uphold nondisclosure--that is, a gag order--upon the Government's good 
faith certification that disclosure may endanger the national security 
of the United States or interfere with diplomatic relations. The bill 
introduced today would allow the judge to review all of the factors and 
would not be controlled by this conclusive presumption.
  The bill introduced today also makes a change on judicial review of 
section 215, which eliminates both the conclusive presumption which was 
added in on the legislation sponsored by Senator Sununu, and it 
eliminates the mandatory 1-year waiting period.
  The sunset on national security letters is an additional provision 
which adds a 4-year sunset to national security letters, which is the 
same sunset in the balance of the conference report. National security 
letters had not been subjected to the PATRIOT Act but were included in 
the Senate version this time. That provision is added.
  We are having an oversight hearing with the Director of the FBI later 
this month. It is my intention, as chairman of the Judiciary Committee, 
to include in that oversight hearing these provisions. We want to see 
exactly how important they are, what the FBI is doing with them. We 
want law enforcement to have the tools it needs.
  I know this is a subject near and dear to the heart of the Presiding 
Officer who was the U.S. attorney in Alabama for law enforcement and 
attorney general, and something of which this Senator has very 
substantial concern based in part on my tenure as district attorney of 
Philadelphia. So we want law enforcement to have the tools which are 
needed. At the same time we want to achieve an appropriate balance with 
civil liberties.
  The statement has been made that it is not anticipated that the House 
will act on such legislation this year. It is a long year. We will wait 
and see. We will see what the developments are. We will see how our 
fight against terrorism goes. We will see what the oversight provisions 
are. But this bill will be useful as a marker to promote further 
reconsideration of that original Senate bill that passed last year. It 
was a significant occasion, if not monumental, to have all 18 members 
of the Judiciary Committee agree on a bill which, as the Presiding 
Officer knows, as do I and people who are familiar with the Judiciary 
Committee, we have representatives at opposite ends of the political 
spectrum. That is what is attractive about the Judiciary Committee. 
Notwithstanding our divergence of views, we have had remarkable success 
in the past 14 months passing the bankruptcy bill, the class action 
bill, and the asbestos bill out of committee.
  We stumbled a little. We are one vote short on the budget point of 
order. That is going to be coming back.
  We are taking a look at some of the provisions I am personally 
talking to Senators about on an individual basis. There is a recognized 
need for asbestos reform. There is only disagreement as to what it 
ought to be. I am asking Senators to take a look at the bill and tell 
me what it is they would like to see done in order to have the bill 
receive the requisite support here to overcome the budget point of 
order--I think we have the votes already there--but to overcome cloture 
and to have a bill that can be enacted.
  Then our committee led the way in the confirmation of the new Chief 
Justice of the Supreme Court, Chief Justice Roberts, and Justice Alito. 
We are now in the midst of working on immigration. I think the renewal 
of the PATRIOT Act is a significant step forward--something the 
President has been anxious to have done and something which will give 
law enforcement the tools it needs with appropriate balance.
  I ask unanimous consent that the text of this new bill be printed in 
the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                                S. 2369

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

     SECTION 1. LIMITATION ON REASONABLE PERIOD FOR DELAY.

       Section 3103a(b)(3) of title 18, United States Code, is 
     amended by striking ``30 days'' and inserting ``7 days''.

     SEC. 2. JUDICIAL REVIEW OF FISA ORDERS AND NATIONAL SECURITY 
                   LETTERS.

       (a) FISA.--Subsection (f)(2) of section 501 of the Foreign 
     Intelligence Surveillance Act of 1978 (50 U.S.C. 1861) is 
     amended
       (1) in subparagraph (A)(i)--
       (A) by striking ``a production order'' and inserting ``a 
     production order or nondisclosure order''; and
       (B) by striking ``Not less than 1 year'' and all that 
     follows through the end of the clause;
       (2) in subparagraph (A)(ii), by striking ``production order 
     or nondisclosure''; and
       (3) in subparagraph (C), by striking clause (ii) and 
     redesignating clause (iii) as clause (ii).
       (b) Judicial Review of National Security Letters.--Section 
     3511(b) of title 18, United States Code, is amended--
       (1) in paragraph (2), by striking ``If, at the time of the 
     petition,'' and all that follows through the end of the 
     paragraph; and
       (2) in paragraph (3), by striking ``If the recertification 
     that disclosure may'' and all that follows through ``made in 
     bad faith.''.

     SEC. 3. FACTUAL BASIS FOR REQUESTED ORDER.

       Section 501(b)(2)(A) of the Foreign Intelligence 
     Surveillance Act of 1978 (50 U.S.C. 1861(b)(2)(A)) is amended 
     to read as follows:
       ``(A) a statement of facts showing that there are 
     reasonable grounds to believe that the records or other 
     things sought--
       ``(i) are relevant to an authorized investigation (other 
     than a threat assessment) conducted in accordance with 
     subsection (a)(2) to obtain foreign intelligence information 
     not concerning a United States person or to protect against 
     international terrorism or clandestine intelligence 
     activities; and
       ``(ii) either--

       ``(I) pertain to a foreign power or an agent of a foreign 
     power;
       ``(II) are relevant to the activities of a suspected agent 
     of a foreign power who is the subject of such authorized 
     investigation; or
       ``(III) pertain to an individual in contact with, or known 
     to, a suspected agent of a foreign power; and''.

[[Page 2704]]



     SEC. 4. NATIONAL SECURITY LETTER SUNSET.

       Section 102 of the USA PATRIOT Improvement and 
     Reauthorization Act of 2005 (H.R. 3199, 109th Congress, 2d 
     Session) is amended by adding at the end the following:
       ``(c) Other Sunsets.--
       ``(1) In general.--Effective December 31, 2009, the 
     following provisions are amended so that they read as they 
     read on February 27, 2006:
       ``(A) Section 2709 of title 18, United States Code.
       ``(B) Sections 626 and 627 of the Fair Credit Reporting Act 
     (15 U.S.C. 1681u, 1681v).
       ``(C) Section 1114 of the Right to Financial Privacy Act 
     (12 U.S.C. 3414).
       ``(D) Section 802 of the National Security Act of 1947 (50 
     U.S.C. 436).
       ``(2) Exception.--With respect to any particular foreign 
     intelligence investigation that began before the date on 
     which the provisions referred to in paragraph (1) cease to 
     have effect, or with respect to any particular offense or 
     potential offense that began or occurred before the date on 
     which such provisions cease to have effect, such provisions 
     shall continue in effect.''.

     SEC. 5. RULE OF CONSTRUCTION.

       Amendments to provisions of law made by this Act are to 
     such provisions, as amended by the USA PATRIOT Improvement 
     and Reauthorization Act of 2005 (H.R. 3199, 109th Congress, 
     2d Session) and by the USA PATRIOT Act Additional 
     Reauthorizing Amendments Act of 2006 (S. 2271, 109th 
     Congress, 2d Session).

  Mr. LEAHY. Mr. President, the PATRIOT Act reauthorization legislation 
that the Senate may vote on this week still has serious flaws and 
troubling omissions. I have spent several months working closely with 
Members from both parties in an attempt to improve these defects. Even 
after the Bush administration and congressional Republicans hijacked 
the House-Senate conference, I tried to get this measure back on the 
right track. Working with a bipartisan group of Senators, we were able 
to achieve some improvements. I regret that the final package is not 
better and that the intransigence of the administration has prevented a 
better bill with better protections for the American people.
  I remain committed to working to provide the tools that we need to 
protect the American people. That includes working to provide the 
oversight and checks needed on the uses of Government power and to 
improve the current reauthorization of the PATRIOT Act. I am therefore 
pleased to join Senator Specter, Senator Sununu, Senator Craig, Senator 
Feingold, and others in introducing a bill to improve the 
reauthorization legislation in several important respects.
  Most importantly, the Specter-Leahy bill corrects one of the most 
egregious ``police state'' provisions regarding gag orders. The Bush-
Cheney administration used the last round of discussions with 
Republican Senators to make the gag order provisions worse, in my view, 
by forbidding any court challenge for 1 year. There is no justification 
for this mandatory waiting period for judicial review, and our bill 
eliminates it. Our bill also eliminates provisions that allow the 
Government to ensure itself of victory by certifying that, in its view, 
disclosure ``may'' endanger national security or ``may'' interfere with 
diplomatic relations. These un-American restraints on meaningful 
judicial review are unfair, unjustified, and completely unacceptable.
  I sought to make these changes to the gag orders provisions in an 
amendment I filed to Senator Sununu's bill, S. 227l, which modified the 
conference report in various respects. Senator Feingold filed other 
amendments aimed at bringing the conference report more in line with 
the bipartisan reauthorization bill that every Member of the Senate 
approved last year. Regrettably, the majority leader chose to prevent 
any effort to offer amendments to S. 227l and effectively stifled open 
debate.
  In addition to fixing the gag order provisions, the Specter-Leahy 
bill adopts the Senate-passed standard for obtaining secret court 
orders under section 215 of the PATRIOT Act. Under this standard, the 
Government can obtain private, confidential records such as library and 
medical records only if there is some connection between those records 
and a suspected terrorist or spy. The Specter-Leahy bill also restores 
the pre-PATRIOT Act rule, adopted by the Senate, that notice of ``sneak 
and peek'' searches may be delayed for no more than 7 days unless 
extended. The conference report sets a 30-day rule for the initial 
delay, more than three times what the Senate, and pre-PATRIOT Act 
courts, deemed appropriate. Finally, the Specter-Leahy bill adds a 4 
year sunset to the national security letter authorities created in the 
conference report. This sunset provision, like those included in the 
original PATRIOT Act at the insistence of myself and House Majority 
Leader Dick Armey, would facilitate oversight and ensure accountability 
for the use of these administrative subpoena authorities.
  Reauthorization of the PATRIOT Act has been a more difficult and far 
more painful process than it should have been. Under the leadership of 
Chairman Specter, the Judiciary Committee managed in just a few weeks 
to produce a bipartisan bill that passed the Senate unanimously. The 
House-Senate conference took a different course and produced a bill 
that Members on both sides of the aisle found unacceptable. It has been 
improved, but critical problems remain. The Specter-Leahy bill corrects 
the worst of these problems, and I will work with the chairman to enact 
these commonsense reforms before the end of the year.
                                 ______
                                 
      By Mr. McCONNELL (for himself, Mr. Biden, Mr. DeMint, Ms. 
        Mikulski, Mr. Martinez, Mr. Nelson of Florida, Mr. Hagel, Mr. 
        Nelson of Nebraska, Mr. DeWine, Mr. Talent, Mr. Allen, Mr. 
        Frist, Mr. Burns, Mr. Thune, Mr. Reid, Mr. Salazar, Mr. Kerry, 
        Mr. Bunning, Mr. Lieberman, and Mrs. Boxer):
  S. 2370. A bill to promote the development of democratic institutions 
in areas under the administrative control of the Palestinian Authority, 
and for other purposes; to the Committee on Foreign Relations.
  Mr. McCONNELL. Mr. President, today, along with my friend, the senior 
Senator from Delaware, Mr. Biden, I send to the desk the Palestinian 
Anti-Terrorism Act of 2006 and ask that it be referred to the 
appropriate committee.
  Senator Biden and I are joined in our efforts today by Senators 
DeMint, Mikulski, Martinez, Senator Nelson of Florida, Hagel, Senator 
Nelson of Nebraska, DeWine, Talent, Allen, Frist, Burns and Thune, all 
of whom are original cosponsors of this legislation. This is a 
bipartisan bill, and I thank my colleagues on both sides of the aisle 
for their leadership on the important issue of how the United States 
addresses the challenges posed by the new Hamas-dominated government in 
the West Bank and Gaza.
  The Palestinian elections of January 25 produced a majority of Hamas 
supporters in the Palestinian parliament. Perhaps the Palestinians were 
frustrated with the corruption of the ruling Fatah Party, or perhaps 
they were tired of the slow pace of reforms. Either way, the 
Palestinian people cast their ballots for an organization that supports 
terrorism and rejects Israel's very right to exist. That is 
antithetical to our security interests in the Middle East, and it 
should be unacceptable to this Senate.
  In light of the recent election, Senator Biden and I are submitting 
this legislation for the Senate's consideration which we hope will send 
an unequivocal message to the Hamas leadership: renounce terror, 
recognize Israel and live up to the commitments made by the previous 
Palestinian government.
  In short, this legislation urges the Palestinian people to take 
another step toward joining the community of peaceful nations and a 
step away from the ranks of terrorism.
  Our bill would do the following: it would restrict assistance to the 
Palestinian Authority, PA, unless it is determined that no PA 
government ministry is controlled by terrorists, that the PA publicly 
acknowledges Israel's right to exist, that the PA has recommitted 
itself to all its prior agreements with Israel, that the PA has made 
progress toward dismantling terrorist infrastructure, and that the PA 
has instituted fiscal transparency. This bill would essentially deny 
visas to certain PA officials and restrict their travel to

[[Page 2705]]

the United States. It also limits diplomatic interaction with 
Palestinian terrorist groups. Finally, this bill contains rigorous 
audit and oversight requirements to ensure compliance with its 
provisions.
  Let me also tell you what this bill does not do. It does not cut off 
assistance to the Palestinian people with respect to food, water, 
medicine, sanitation and other basic human needs. Thus, humanitarian 
assistance that does not go through the Palestinian government will 
continue. Moreover, funding for democracy programs will also be 
continued. Both Senator Biden and I appreciate the need not to punish 
the Palestinian people for actions its future government may take. Our 
concern is with the new regime taking power and in giving them the 
proper incentives to embrace peace and to abandon the pro-terror stance 
they have taken up until now.
  Democracy is about more than just elections, it is also about 
responsible, accountable governance. The Palestinian elections a few 
weeks back reflect this fact. International observers indicate that the 
Palestinian elections were essentially free and fair--which in and of 
itself is certainly a good thing.
  I strongly support democratic elections. That said, any right-minded 
person deplores the result of those elections.
  A key part of democratic governance is that elected officials are 
responsible for the actions they take. If Hamas takes power and 
persists in sponsoring terror, rejecting Israel's right to exist and 
refusing to accept prior commitments made to Israel, then they should 
be held accountable for their actions and for the foreign aid 
investments in the West Bank and Gaza paid for by American taxpayers. 
The PA's budget is supported in large part by foreign assistance, and 
Hamas has been put on notice by the United States and many in the donor 
community about the steps it must take in order to receive assistance 
in the future.
  Along these same lines, I must say I am somewhat mystified at the 
recent diplomatic efforts undertaken by Russia. Russia broke from the 
Middle East Quartet and hosted representatives from Hamas in Moscow.
  In so doing, the Russians granted Hamas a measure of international 
legitimacy Hamas had hitherto lacked, while the Russians appear to have 
received no meaningful concessions in return. I am afraid I fail to see 
the benefit in Russia's actions other than emboldening other nations to 
follow a similar course of dealing with a terrorist organization. I 
suspect the Russians would be less than elated if Israel hosted Chechen 
separatists in Jerusalem.
  Foreign aid is not an entitlement. It is assistance from the American 
people to other nations, and it should be conducted in furtherance of 
U.S. interests and those of our allies. It is not to be given to 
organizations that actively work against those interests. Hamas, as it 
now stands, is just such an organization.
  The ball is squarely in Hamas' court. It can either work for the good 
of its citizens as an accountable democratic government should, or it 
can continue to act as a revolutionary group to the profound detriment 
of its citizens.
  Mr. LIEBERMAN. I thank Senator McConnell for the excellent statement. 
I have not had a chance to look at the legislation, but I am sure I 
will want to be added as an original cosponsor.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2370

       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 financially 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 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 effectively controlled by Hamas, 
     unless Hamas has--
       ``(A) publicly acknowledged Israel's right to exist as a 
     Jewish state; 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 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 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) National Security Waiver.--
       ``(1) Waiver.--The President may waive the limitation in 
     subsection (a) with respect to the administrative and 
     personal security costs of the Office of President of the 
     Palestinian Authority and for activities of the President of 
     the Palestinian Authority to promote democracy and the rule 
     of law if the President certifies and reports to the 
     appropriate congressional committees that--
       ``(A) it is in the national security interests of the 
     United States to provide such assistance; and
       ``(B) the President of the Palestinian Authority and the 
     President's party are not affiliated with Hamas or any other 
     foreign terrorist organization.

[[Page 2706]]

       ``(2) Consultation required.--The President shall consult 
     with the appropriate congressional committees prior to making 
     a certification under paragraph (1).
       ``(f) Definitions.--In this section:
       ``(1) Appropriate congressional committees defined.--The 
     term `appropriate congressional committees' means--
       ``(A) the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives; 
     and
       ``(B) the Committee on Foreign Relations and the Committee 
     on Appropriations of the Senate.
       ``(2) Foreign terrorist organization.--The term `foreign 
     terrorist organization' means an organization designated as a 
     foreign terrorist organization by the Secretary of State in 
     accordance with section 219(a) of the Immigration and 
     Nationality Act (8 U.S.C. 1189(a)).
       ``(3) Palestinian authority.--The term `Palestinian 
     Authority' means the interim Palestinian administrative 
     organization that governs part of the West Bank and all of 
     the Gaza Strip (or any successor Palestinian governing 
     entity), including the Palestinian Legislative Council.''.
       (c) Previously Obligated Funds.--The provisions of section 
     620K of the Foreign Assistance Act of 1961, as added by 
     subsection (b), shall be applicable to the unexpended 
     balances of funds obligated prior to the date of the 
     enactment of this Act.

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

       (a) Amendment.--Chapter 1 of part III of the Foreign 
     Assistance Act of 1961 (22 U.S.C. 2351 et seq.), as amended 
     by section 2(b)(2), is further amended by adding at the end 
     the following new section:

     ``SEC. 620L. LIMITATION ON ASSISTANCE FOR THE WEST BANK AND 
                   GAZA.

       ``(a) Limitation.--Assistance may be provided under this 
     Act to nongovernmental organizations for the West Bank and 
     Gaza only during a period for which a certification described 
     in section 620K(b) is in effect with respect to the 
     Palestinian Authority.
       ``(b) Exceptions.--Subsection (a) shall not apply with 
     respect to the following:
       ``(1) Assistance to meet basic human needs.--Assistance to 
     meet food, water, medicine, or sanitation needs, or other 
     assistance to meet basic human needs.
       ``(2) Assistance to promote democracy.--Assistance to 
     promote democracy, human rights, freedom of the press, non-
     violence, reconciliation, and peaceful co-existence, provided 
     that such assistance does not directly benefit Hamas or other 
     foreign terrorist organizations.
       ``(3) Other types of assistance.--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 45 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).
       ``(4) 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.
       ``(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 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 a 
     significant adverse effect on the implementation of that 
     assistance.
       ``(d) Congressional Notification.--Assistance made 
     available under this Act to nongovernmental organizations for 
     the West Bank and Gaza may not be provided until 15 days 
     after the date on which the President has provided notice 
     thereof to the Committee on International Relations and the 
     Committee on Appropriations of the House of Representatives 
     and to the Committee on Foreign Relations and the Committee 
     on Appropriations of the Senate in accordance with the 
     procedures applicable to reprogramming notifications under 
     section 634A(a) of this Act.''.
       (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 or any other provision of 
     law, the Secretary of State shall take all appropriate steps 
     to ensure that such assistance is not provided to or through 
     any individual or entity that the Secretary knows, or has 
     reason to believe, advocates, plans, sponsors, engages in, or 
     has engaged in, terrorist activity. The Secretary shall, as 
     appropriate, establish procedures specifying the steps to be 
     taken in carrying out this paragraph and shall terminate 
     assistance to any individual or entity that the Secretary has 
     determined advocates, plans, sponsors, or engages in 
     terrorist activity.
       (3) Prohibition.--No amounts made available for fiscal year 
     2007 or 2008 for assistance to nongovernmental organizations 
     for the West Bank or Gaza under the Foreign Assistance Act of 
     1961 may be made available for the purpose of recognizing or 
     otherwise honoring individuals who commit, or have committed, 
     acts of terrorism.
       (4) Audits.--
       (A) In general.--The Administrator of the United States 
     Agency for International Development shall ensure that 
     Federal or non-Federal audits of all contractors and 
     grantees, and significant subcontractors and subgrantees, 
     that receive amounts for assistance to nongovernmental 
     organizations for the West Bank or Gaza under the Foreign 
     Assistance Act of 1961 are conducted for each of the fiscal 
     years 2007 and 2008 to ensure, among other things, compliance 
     with this subsection.
       (B) Audits by inspector general of usaid.--Of the amounts 
     available for each of the fiscal years 2007 and 2008 for 
     assistance to nongovernmental organizations for the West Bank 
     or Gaza under the Foreign Assistance Act of 1961, up to 
     $1,000,000 for each such fiscal year may be used by the 
     Office of the Inspector General of the United States Agency 
     for International Development for audits, inspections, and 
     other activities in furtherance of the requirements of 
     subparagraph (A). Such amounts are in addition to amounts 
     otherwise available for such purposes.

     SEC. 4. DESIGNATION OF TERRITORY CONTROLLED BY THE 
                   PALESTINIAN AUTHORITY AS TERRORIST SANCTUARY.

       It is the sense of Congress that, during any period for 
     which a certification described in section 620K(b) of the 
     Foreign Assistance Act of 1961 (as added by section 2(b)(2) 
     of this Act) is not in effect with respect to the Palestinian 
     Authority, the territory controlled by the Palestinian 
     Authority should be deemed to be in use as a sanctuary for 
     terrorists or terrorist organizations for purposes of section 
     6(j)(5) of the Export Administration Act of 1979 (50 U.S.C. 
     App. 2405(j)(5)) and section 140 of the Foreign Relations 
     Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 
     2656f).

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

       A visa should not be issued to any alien who is an official 
     of, affiliated with, or serving as a representative of the 
     Palestinian Authority, other than 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, 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. 6. TRAVEL RESTRICTIONS ON OFFICIALS AND REPRESENTATIVES 
                   OF THE PALESTINIAN AUTHORITY AND THE PALESTINE 
                   LIBERATION ORGANIZATION STATIONED AT THE UNITED 
                   NATIONS IN NEW YORK CITY.

       (a) In General.--Notwithstanding any other provision of 
     law, and except as provided in subsection (b), the President 
     should restrict the travel of officials and representatives 
     of the Palestinian Authority and of the Palestine Liberation 
     Organization, who are stationed at the United Nations in New 
     York City to a 25-mile radius of the United Nations 
     headquarters building during any period for which a 
     certification described in section 620K(b) of the Foreign 
     Assistance Act of 1961 (as added by section 2(b)(2) of this 
     Act) is not in effect with respect to the Palestinian 
     Authority.
       (b) Exception.--The travel restrictions described in 
     subsection (a) should not apply to the President of the 
     Palestinian Authority and his or her personal 
     representatives, provided that the President and his or her 
     personal representatives are not affiliated with Hamas or any 
     other foreign terrorist organization.

     SEC. 7. PROHIBITION ON PALESTINIAN AUTHORITY REPRESENTATION 
                   IN THE UNITED STATES.

       (a) Prohibition.--Notwithstanding any other provision of 
     law, it shall be unlawful to establish or maintain an office, 
     headquarters, premises, or other facilities or establishments 
     within the jurisdiction of the United States at the behest or 
     direction of, or with funds provided by, the Palestinian 
     Authority during any period for which a certification 
     described in section 620K(b) of the

[[Page 2707]]

     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 co-
     existence, provided that such assistance does not directly 
     benefit Hamas or other foreign terrorist organizations.
       (c) Definition.--In this section, the term ``international 
     financial institution'' has the meaning given the term in 
     section 1701(c)(2) of the International Financial 
     Institutions Act (22 U.S.C. 262r(c)(2)).

     SEC. 9. DIPLOMATIC CONTACTS WITH PALESTINIAN TERROR 
                   ORGANIZATIONS.

       No funds authorized or available to the Department of State 
     may be used for or by any officer or employee of the United 
     States Government to negotiate with members or official 
     representatives of Hamas, Palestinian Islamic Jihad, the 
     Popular Front for the Liberation of Palestine, al-Aqsa 
     Martyrs Brigade, or any other Palestinian terrorist 
     organization (except in emergency or humanitarian 
     situations), unless and until such organization--
       (1) recognizes Israel's right to exist;
       (2) renounces the use of terrorism;
       (3) dismantles the infrastructure in areas within its 
     jurisdiction necessary to carry out terrorist acts, including 
     the disarming of militias and the elimination of all 
     instruments of terror; and
       (4) recognizes and accepts all previous agreements and 
     understandings between the State of Israel and the 
     Palestinian Authority.

     SEC. 10. 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. 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).

  Mr. BIDEN. Mr. President, I am pleased to join the Senator from 
Kentucky as the lead cosponsor of the Palestinian Anti-Terrorism Act of 
2006.
  This bill sends a clear message: The United States will not provide a 
single penny to a Hamas-led government unless it renounces violence, 
recognizes Israel, and accepts past agreements between Israel and the 
Palestinian Authority. These requirements are clear, and they reflect 
the will not just of the United States, but of the international 
community, including the so-called Quartet of the United States, the 
European Union, Russia and the United Nations.
  Simply put, Hamas must choose between bullets and ballots, between 
destructive terror and constructive governance. It cannot have it both 
ways.
  The bill affirms support for a two-state solution to end the Israeli-
Palestinian conflict, an objective that Hamas rejects. The bill also 
requires the administration to report on steps it is taking to urge 
other nations to refrain from providing financial assistance to Hamas. 
In addition, it places restrictions on diplomatic contacts and 
movements by representatives of Hamas.
  At the same time, the bill makes clear that we want to continue to 
support the basic needs of the Palestinian people. Assistance to the 
Palestinians for things such as food, water, medicine, and sanitation 
through non-governmental organizations will be permitted under this * * 
*
  Instead of moving urgently, we dithered. Several months into last 
year, the President made a smart move by appointing Jim Wolfensohn the 
Quartet's special envoy to the Middle East, but he failed to strongly 
support his efforts. It wasn't until November that Secretary Rice got 
directly involved by brokering a breakthrough agreement on Gaza. That 
was welcome, but it was too little, too late.
  I don't want to dwell on the past, but I think it's important that we 
try to learn from it.
  It's also well known that Israel had deep misgivings about proceeding 
with these elections. Their views should have been considered more 
closely--after all, the consequences affect them directly.
  Overall, I think this Administration has made the mistake of 
confusing democracy with elections. Elections are necessary but not 
sufficient--they do not a democracy make. Democracy is about building 
durable institutions--including political parties, transparent and 
effective government, civil society and a strong private sector.
  We see what happens in the Middle East when you have elections with 
weak institutions--including in Egypt, Muslim Brotherhood, Lebanon, 
Hezbollah, Iraq, SCIRI, and now the Palestinian Authority. All of us 
support the spread of democracy, but we should also support the hard 
work and investments it takes to build it.
  Regarding the Palestinian vote, what should we do now? Obviously, 
Hamas's victory casts a pall on the future of the peace process.
  First, Israel cannot be expected to negotiate with a party that calls 
for its destruction, engages in terrorism and maintains an armed 
militia.
  Second, we should build international support for the position of the 
Quartet--no assistance to a Hamas-led government until it agrees to 
recognize Israel, renounce violence, and accept past agreements.
  Third, we need to press the Arab Gulf states not to rush in and 
financially support a Hamas-led government. That would take the 
pressure off Hamas, and it would reveal the hypocrisy of the Arab 
governments who say they support peace, but were unwilling to be more 
generous with Abbas's government.
  Hamas is now ``the dog that caught the car.'' It must respond to 
international demands and, even more importantly, it must be responsive 
to the Palestinian public which wants reform, but doesn't want 
isolation, poverty, and radicalism.
  The legislation I have introduced with my colleague, the senior 
Senator from Kentucky, is our attempt to clarify the choices for Hamas, 
and to make clear our rejection of a group that is committed to terror.
                                 ______
                                 
      By. Mr. KERRY:
  S. 2372. A bill to amend the Congressional Budget and Impoundment 
Control Act of 1974 to provide for the expedited consideration of 
certain proposed

[[Page 2708]]

cancellations of appropriations, new direct spending, and limited tax 
benefits; to the Committee on the Budget.
  Mr. KERRY. Mr. President. I am pleased to introduce legislation today 
that establishes a constitutional line item veto, which would allow the 
President to reduce pork barrel spending and save taxpayers billions of 
dollars. Congress has an opportunity this week in our debate on 
lobbying reform to take ethics reform seriously and take action to rid 
the federal budget of special interest projects. Giving the President 
the ability to target projects placed in the budget at the last minute 
at the request of a single lawmaker is a step in the right direction 
and a critical move toward needed transparency.
  It is no secret that President Bush and I do not agree on many policy 
matters, but I fully support giving him this line item veto authority 
and I applaud the President's comments earlier today. I hope that 
Congress immediately takes up and passes this legislation, and I hope 
that President Bush will be able to use this new veto authority soon to 
get tough on wasteful spending.
  Under the Republican-led House and Senate, pork-barrel spending has 
skyrocketed. Nearly $30 billion a year is being spent on projects that 
have never even been debated. For fiscal year 2005, appropriators added 
13,997 projects into the 13 appropriations bills, an increase of 31 
percent over last year's total of 10,656. In the last two years, the 
total number of projects has increased by 49.5 percent. The cost of 
these projects in fiscal year 2005 was $27.3 billion, or 19 percent 
more than last year's total of $22.9 billion. Billions of taxpayer 
dollars are being wasted on things like research to enhance the flavor 
of roasted peanuts and the infamous ``bridge to nowhere.'' We have the 
largest deficit in American history and Congress and the President must 
take action to get spending under control.
  In 1996, the Congress passed and President Clinton signed into law 
the ``Line Item Veto Act'', P.L. 104-130. Two years later, however, in 
Clinton v. City of New York the Supreme Court concluded that the method 
used to give the President line item veto authority was 
unconstitutional. The Court noted that presidents may only sign or veto 
entire acts of Congress. The Constitution does not authorize them to 
enact, to amend, or to repeal statutes.
  We can restore the line item veto and be consistent with the 
Constitution. The key difference between what I am proposing and what 
the Supreme Court struck down is the legal effect of the President's 
actions. The ``Line Item Veto Act'' allowed the President to cancel 
provisions in their entirety, but the Supreme Court rejected this 
arrangement. The Line Item Veto Act of 2006 is different. It will 
empower the President to suspend provisions until the Congress decides 
to approve or disapprove of that suspension with an up or down vote. 
The provisions are not cancelled out of the legislation. I believe this 
change addresses the Supreme Court's concerns.
  I agree with President Bush's comments earlier today, it is indeed 
`time to bring this important tool of fiscal discipline to Washington, 
D.C.' I look forward to working with my colleagues on both sides of the 
aisle to pass the Line Item Veto Act and I look forward to President 
Bush using this authority to reign in pork-barrel spending.
                                 ______
                                 
      By Mr. COLEMAN:
  S. 2374. A bill to amend the Homeland Security Act of 2002 to limit 
foreign control of investments in certain United States critical 
infrastructure; to the Committee on Banking, Housing, and Urban 
Affairs.
  Mr. COLEMAN. Mr. President, I ask unanimous consent that the text of 
my legislation, the Foreign Investment Transparency and Security Act of 
2006, be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2374

       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 ``Foreign Investment 
     Transparency and Security Act of 2006''.

     SEC. 2. LIMITS ON FOREIGN CONTROL OF INVESTMENTS IN CERTAIN 
                   UNITED STATES CRITICAL INFRASTRUCTURE.

       (a) In General.--Title II of the Homeland Security Act of 
     2002 (6 U.S.C. 201 et seq.) is amended by adding at the end 
     the following:

   ``Subtitle E--Limits on Foreign Control of Investments in Certain 
                 United States Critical Infrastructure

     ``SEC. 241. DEFINITIONS.

       ``As used in this subtitle--
       ``(1) the term `foreign government controlled entity' means 
     any entity in which a foreign government owns a majority 
     interest, or otherwise controls or manages the entity; and
       ``(2) the term `general business corporation' means any 
     entity that qualifies for treatment for Federal taxation 
     purposes under subchapter C or subchapter S of the Internal 
     Revenue Code of 1986, established or organized under the laws 
     of any State.

     ``SEC. 242. LIMITATION ON FOREIGN INVESTMENTS.

       ``(a) In General.--A foreign government controlled entity 
     may acquire, own, or otherwise control or manage any critical 
     infrastructure of the United States only through the 
     establishment or operation of a foreign owned general 
     business corporation that meets the requirements of 
     subsection (b).
       ``(b) Requirements.--For purposes of this section, a 
     general business corporation shall have--
       ``(1) a board of directors, the majority of which is 
     comprised of United States citizens; and
       ``(2) a chief security officer who is a United States 
     citizen, responsible for safety and security issues related 
     to the critical infrastructure.
       ``(c) Rule of Construction.--Nothing in this subtitle may 
     be construed to restrict or otherwise alter the authority of 
     the President or the Committee on Foreign Investment in the 
     United States (or any successor thereto) as the designee of 
     the President, under section 721 of the Defense Production 
     Act of 1950.

     ``SEC. 243. REGULATIONS REQUIRED.

       ``Not later than 6 months after the date of enactment of 
     this subtitle, the Secretary of the Treasury, in coordination 
     with the Secretary, shall promulgate final regulations to 
     carry out this subtitle.

     ``SEC. 244. EFFECTIVE DATE.

       ``(a) In General.--Section 242 shall apply beginning on the 
     date that is 6 months after the date of enactment of this 
     subtitle.
       ``(b) Existing Entities.--A foreign government controlled 
     entity that owns or otherwise controls or manages any 
     critical infrastructure of the United States on the effective 
     date of this subtitle shall comply with the requirements of 
     this subtitle not later than 180 days after that effective 
     date.''.
       (b) Conforming Amendment.--The table of contents under 
     section 1(b) of the Homeland Security Act of 2002 (6 U.S.C. 
     101) is amended by inserting after the item relating to 
     section 237 the following:

   ``Subtitle E--Limits on Foreign Control of Investments in Certain 
                 United States Critical Infrastructure

``Sec. 241. Definitions.
``Sec. 242. Limitation on foreign investments.
``Sec. 243. Regulations required.
``Sec. 244. Effective date.''.

                          ____________________