[United States Statutes at Large, Volume 120, 109th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]

120 STAT. 3318

Public Law 109-446
109th Congress

An Act


 
To promote the development of democratic institutions in areas under the
administrative control of the Palestinian Authority, and for other
purposes.  NOTE: Dec. 21, 2006 -  [S. 2370]

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,  NOTE: Palestinian
Anti-Terrorism Act of 2006.

SECTION 1.  NOTE: 22 USC 2378b note.  SHORT TITLE.

This Act may be cited as the ``Palestinian Anti-Terrorism Act of
2006''.

SEC. 2.  NOTE: 22 USC 2378b note.  LIMITATION ON ASSISTANCE TO THE
PALESTINIAN AUTHORITY.

(a) Declaration of Policy.--It shall be the policy of the United
States--
(1) to support a peaceful, two-state solution to end the
conflict between Israel and the Palestinians in accordance with
the Performance-Based Roadmap to a Permanent Two-State Solution
to the Israeli-Palestinian Conflict (commonly referred to as the
``Roadmap'');
(2) to oppose those organizations, individuals, and
countries that support terrorism and violently reject a two-
state solution to end the Israeli-Palestinian conflict;
(3) to promote the rule of law, democracy, the cessation of
terrorism and incitement, and good governance in institutions
and territories controlled by the Palestinian Authority; and
(4) to urge members of the international community to avoid
contact with and refrain from supporting the terrorist
organization Hamas until it agrees to recognize Israel, renounce
violence, disarm, and accept prior agreements, including the
Roadmap.

(b) Amendments.--Chapter 1 of part III of the Foreign Assistance Act
of 1961 (22 U.S.C. 2351 et seq.) is amended--
(1) by redesignating the second section 620G (as added by
section 149 of Public Law 104-164 (110 Stat. 1436))  NOTE: 22
USC 2378a.  as section 620J; and
(2) by adding at the end the following new section:

``SEC. 620K.  NOTE: 22 USC 2378b.  LIMITATION ON ASSISTANCE TO THE
PALESTINIAN AUTHORITY.

``(a) Limitation.--Assistance may be provided under this Act to the
Hamas-controlled Palestinian Authority only during a period for which a
certification described in subsection (b) is in effect.
``(b) Certification.--A  NOTE: President.  certification described
in subsection (a) is a certification transmitted by the President to
Congress that contains a determination of the President that--

[[Page 3319]]
120 STAT. 3319

``(1) no ministry, agency, or instrumentality of the
Palestinian Authority is effectively controlled by Hamas, unless
the Hamas-controlled Palestinian Authority has--
``(A) publicly acknowledged the Jewish state of
Israel's right to exist; and
``(B) committed itself and is adhering to all
previous agreements and understandings with the United
States Government, with the Government of Israel, and
with the international community, including agreements
and understandings pursuant to the Performance-Based
Roadmap to a Permanent Two-State Solution to the
Israeli-Palestinian Conflict (commonly referred to as
the `Roadmap'); and
``(2) the Hamas-controlled Palestinian Authority has made
demonstrable progress toward--
``(A) completing the process of purging from its
security services individuals with ties to terrorism;
``(B) dismantling all terrorist infrastructure
within its jurisdiction, confiscating unauthorized
weapons, arresting and bringing terrorists to justice,
destroying unauthorized arms factories, thwarting and
preempting terrorist attacks, and fully cooperating with
Israel's security services;
``(C) halting all anti-American and anti-Israel
incitement in Palestinian Authority-controlled
electronic and print media and in schools, mosques, and
other institutions it controls, and replacing
educational materials, including textbooks, with
materials that promote peace, tolerance, and coexistence
with Israel;
``(D) ensuring democracy, the rule of law, and an
independent judiciary, and adopting other reforms such
as ensuring transparent and accountable governance; and
``(E) ensuring the financial transparency and
accountability of all government ministries and
operations.

``(c) Recertifications.--Not  NOTE: Deadlines. President.  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)  NOTE: Reports.  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  NOTE: Effective
date.  made available under this Act to the Palestinian Authority may
not be provided until 15 days after the date on which the President has
provided notice thereof to the appropriate congressional committees in
accordance with the procedures applicable to reprogramming notifications
under section 634A(a) of this Act.

``(e) National Security Waiver.--
``(1) In general.--Subject to paragraph (2), the President
may waive subsection (a) with respect to--
``(A) the administrative and personal security costs
of the Office of the President of the Palestinian
Authority;
``(B) the activities of the President of the
Palestinian Authority to fulfill his or her duties as
President, including to maintain control of the
management and security of

[[Page 3320]]
120 STAT. 3320

border crossings, to foster the Middle East peace
process, and to promote democracy and the rule of law;
and
``(C) assistance for the judiciary branch of the
Palestinian Authority and other entities.
``(2) Certification.--The President may only exercise the
waiver authority under paragraph (1) after--
``(A) consulting with, and submitting a written
policy justification to, the appropriate congressional
committees; and
``(B) certifying to the appropriate congressional
committees that--
``(i) it is in the national security interest
of the United States to provide assistance
otherwise prohibited under subsection (a); and
``(ii) the individual or entity for which
assistance is proposed to be provided is not a
member of, or effectively controlled by (as the
case may be), Hamas or any other foreign terrorist
organization.
``(3) Report.--Not  NOTE: President.  later than 10 days
after exercising the waiver authority under paragraph (1), the
President shall submit to the appropriate congressional
committees a report describing how the funds provided pursuant
to such waiver will be spent and detailing the accounting
procedures that are in place to ensure proper oversight and
accountability.
``(4) Treatment of certification as notification of program
change.--For purposes of this subsection, the certification
required under paragraph (2)(B) shall be deemed to be a
notification under section 634A and shall be considered in
accordance with the procedures applicable to notifications
submitted pursuant to that section.

``(f) Definitions.--In this section:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on International Relations and
the Committee on Appropriations of the House of
Representatives; and
``(B) the Committee on Foreign Relations and the
Committee on Appropriations of the Senate.
``(2) Foreign terrorist organization.--The term `foreign
terrorist organization' means an organization designated as a
foreign terrorist organization by the Secretary of State in
accordance with section 219(a) of the Immigration and
Nationality Act (8 U.S.C. 1189(a)).
``(3) Palestinian authority.--The term `Palestinian
Authority' means the interim Palestinian administrative
organization that governs part of the West Bank and all of the
Gaza Strip (or any successor Palestinian governing entity),
including the Palestinian Legislative Council.''.

(c) Previously Obligated Funds.--
The  NOTE: Applicability.  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.  NOTE: 22 USC 2378b note.  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

[[Page 3321]]
120 STAT. 3321

2(b)(2), is further amended by adding at the end the following new
section:

``SEC. 620L.  NOTE: 22 USC 2378c.  LIMITATION ON ASSISTANCE FOR THE
WEST BANK AND GAZA.

``(a) Limitation.--Assistance may be provided under this Act to
nongovernmental organizations for the West Bank and Gaza only during a
period for which a certification described in section 620K(b) is in
effect with respect to the Palestinian Authority.
``(b) Exceptions.--Subsection (a) shall not apply with respect to
the following:
``(1) Assistance to meet basic human needs.--Assistance to
meet food, water, medicine, health, or sanitation needs, or
other assistance to meet basic human needs.
``(2) Assistance to promote democracy.--Assistance to
promote democracy, human rights, freedom of the press, non-
violence, reconciliation, and peaceful coexistence, provided
that such assistance does not directly benefit Hamas or any
other foreign terrorist organization.
``(3) Assistance for individual members of the palestinian
legislative council.--Assistance, other than funding of salaries
or salary supplements, to individual members of the Palestinian
Legislative Council who the President determines are not members
of Hamas or any other foreign terrorist organization, for the
purposes of facilitating the attendance of such members in
programs for the development of institutions of democratic
governance, including enhancing the transparent and accountable
operations of such institutions, and providing support for the
Middle East peace process.
``(4) Other types of assistance.--
Any  NOTE: President.  other type of assistance if the
President--
``(A) determines that the provision of such
assistance is in the national security interest of the
United States; and
``(B)  NOTE: Deadline.  not less than 30 days
prior to the obligation of amounts for the provision of
such assistance--
``(i) consults with the appropriate
congressional committees regarding the specific
programs, projects, and activities to be carried
out using such assistance; and
``(ii) submits to the appropriate
congressional committees a written memorandum that
contains the determination of the President under
subparagraph (A).

``(c) Marking Requirement.--Assistance provided under this Act to
nongovernmental organizations for the West Bank and Gaza shall be marked
as assistance from the American people or the United States Government
unless the Secretary of State or, as appropriate, the Administrator of
the United States Agency for International Development, determines that
such marking will endanger the lives or safety of persons delivering
such assistance or would have an adverse effect on the implementation of
that assistance.
``(d) Congressional Notification.--Assistance  NOTE: Effective
date.  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



[[Page 3322]]
120 STAT. 3322

on International Relations and the Committee on Appropriations of the
House of Representatives and to the Committee on Foreign Relations and
the Committee on Appropriations of the Senate in accordance with the
procedures applicable to reprogramming notifications under section
634A(a) of this Act.
``(e) Definitions.--In this section:
``(1) Appropriate congressional committees.--the term
`appropriate congressional committees' means--
``(A) the Committee on International Relations and
the Committee on Appropriations of the House of
Representatives; and
``(B) the Committee on Foreign Relations and the
Committee on Appropriations of the Senate.
``(2) Foreign terrorist organization.--The term `foreign
terrorist organization' means an organization designated as a
foreign terrorist organization by the Secretary of State in
accordance with section 219(a) of the Immigration and
Nationality Act (8 U.S.C. 1189(a)).''.

(b) Oversight and Related Requirements.--
(1) Oversight.--For  NOTE: Certification. Deadline.  each
of the fiscal years 2007 and 2008, the Secretary of State shall
certify to the appropriate congressional committees not later
than 30 days prior to the initial obligation of amounts for
assistance to nongovernmental organizations for the West Bank or
Gaza under the Foreign Assistance Act of 1961 that procedures
have been established to ensure that the Comptroller General of
the United States will have access to appropriate United States
financial information in order to review the use of such
assistance.
(2) Vetting.--Prior to any obligation of amounts for each of
the fiscal years 2007 and 2008 for assistance to nongovernmental
organizations for the West Bank or Gaza under the Foreign
Assistance Act of 1961, the Secretary of State shall take all
appropriate steps to ensure that such assistance is not provided
to or through any individual or entity that the Secretary knows,
or has reason to believe, advocates, plans, sponsors, engages
in, or has engaged in, terrorist activity. The Secretary shall,
as appropriate, establish procedures specifying the steps to be
taken in carrying out this paragraph and shall terminate
assistance to any individual or entity that the Secretary has
determined advocates, plans, sponsors, or engages in terrorist
activity.
(3) Prohibition.--No amounts made available for fiscal year
2007 or 2008 for assistance to nongovernmental organizations for
the West Bank or Gaza under the Foreign Assistance Act of 1961
may be made available for the purpose of recognizing or
otherwise honoring individuals who commit, or have committed,
acts of terrorism.
(4) Audits.--
(A) In general.--The Administrator of the United
States Agency for International Development shall ensure
that Federal or non-Federal audits of all contractors
and grantees, and significant subcontractors and
subgrantees, that receive amounts for assistance to
nongovernmental organizations for the West Bank or Gaza
under the Foreign Assistance Act of 1961 are conducted
for each of the fiscal years 2007 and 2008 to ensure,
among other things, compliance with this subsection.

[[Page 3323]]
120 STAT. 3323

(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.  NOTE: 22 USC 2378b note.  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.  NOTE: 22 USC 2378b note.  DENIAL OF VISAS FOR OFFICIALS OF
THE PALESTINIAN AUTHORITY.

(a) In General.--Except as provided in subsection (b), a visa should
not be issued to any alien who is an official of, under the control of,
or serving as a representative of the Hamas-led Palestinian Authority
during any period for which a certification described in section 620K(b)
of the Foreign Assistance Act of 1961 (as added by section 2(b)(2) of
this Act) is not in effect with respect to the Palestinian Authority.
(b) Exception.--The restriction under subsection (a) should not
apply to--
(1) the President of the Palestinian Authority and his or
her personal representatives, provided that the President and
his or her personal representatives are not affiliated with
Hamas or any other foreign terrorist organization; and
(2) members of the Palestinian Legislative Council who are
not members of Hamas or any other foreign terrorist
organization.

SEC. 6.  NOTE: 22 USC 2378b note.  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

[[Page 3324]]
120 STAT. 3324

and his or her personal representatives are not affiliated with Hamas or
any other foreign terrorist organization.

SEC. 7.  NOTE: 22 USC 2378b note.  PROHIBITION ON PALESTINIAN
AUTHORITY REPRESENTATION IN THE UNITED STATES.

(a) Prohibition.--Notwithstanding any other provision of law, it
shall be unlawful to establish or maintain an office, headquarters,
premises, or other facilities or establishments within the jurisdiction
of the United States at the behest or direction of, or with funds
provided by, the Palestinian Authority during any period for which a
certification described in section 620K(b) of the Foreign Assistance Act
of 1961 (as added by section 2(b)(2) of this Act) is not in effect with
respect to the Palestinian Authority.
(b) Enforcement.--
(1) Attorney general.--The Attorney General shall take the
necessary steps and institute the necessary legal action to
effectuate the policies and provisions of subsection (a).
(2) Relief.--Any district court of the United States for a
district in which a violation of subsection (a) occurs shall
have authority, upon petition of relief by the Attorney General,
to grant injunctive and such other equitable relief as it shall
deem necessary to enforce the provisions of subsection (a).

(c) Waiver.--Subsection (a) shall not apply if the President
determines and certifies to the appropriate congressional committees
that the establishment or maintenance of an office, headquarters,
premises, or other facilities is vital to the national security
interests of the United States.

SEC. 8.  NOTE: 22 USC 2378b note.  INTERNATIONAL FINANCIAL
INSTITUTIONS.

(a) Requirement.--The President should direct the United States
Executive Director at each international financial institution to use
the voice, vote, and influence of the United States to prohibit
assistance to the Palestinian Authority (other than assistance described
under subsection (b)) during any period for which a certification
described in section 620K(b) of the Foreign Assistance of 1961 (as added
by section 2(b)(2) of this Act) is not in effect with respect to the
Palestinian Authority.
(b) Exceptions.--The prohibition on assistance described in
subsection (a) should not apply with respect to the following types of
assistance:
(1) Assistance to meet food, water, medicine, or sanitation
needs, or other assistance to meet basic human needs.
(2) Assistance to promote democracy, human rights, freedom
of the press, non-violence, reconciliation, and peaceful
coexistence, provided that such assistance does not directly
benefit Hamas or other foreign terrorist organizations.

(c) Definition.--In this section, the term ``international financial
institution'' has the meaning given the term in section 1701(c)(2) of
the International Financial Institutions Act (22 U.S.C. 262r(c)(2)).

SEC. 9.  NOTE: 22 USC 2378b note.  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

[[Page 3325]]
120 STAT. 3325

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.  NOTE: 22 USC 2378b note.  ISRAELI-PALESTINIAN PEACE,
RECONCILIATION AND DEMOCRACY FUND.

(a) Establishment of Fund.--Not  NOTE: Deadline.  later than 60
days after the date of the enactment of this Act, the Secretary of State
shall establish a fund to be known as the ``Israeli-Palestinian Peace,
Reconciliation and Democracy Fund'' (in this section referred to as the
``Fund''). The purpose of the Fund shall be to support, primarily,
through Palestinian and Israeli organizations, the promotion of
democracy, human rights, freedom of the press, and non-violence among
Palestinians, and peaceful coexistence and reconciliation between
Israelis and Palestinians.

(b) Annual Report.--Not later than 60 days after the date of the
enactment of this Act, and annually thereafter for so long as the Fund
remains in existence, the Secretary of State shall submit to the
appropriate congressional committees a report on programs sponsored and
proposed to be sponsored by the Fund.
(c) Authorization of Appropriations.--There is authorized to be
appropriated to the Secretary of State $20,000,000 for fiscal year 2007
for purposes of the Fund.

SEC. 11.  NOTE: 22 USC 2378b note.  REPORTING REQUIREMENT.

Not later than 90 days after the date of the enactment of this Act,
and annually thereafter, the Secretary of State shall submit to the
appropriate congressional committees a report that--
(1) describes the steps that have been taken by the United
States Government to ensure that other countries and
international organizations, including multilateral development
banks, do not provide direct assistance to the Palestinian
Authority for any period for which a certification described in
section 620K(b) of the Foreign Assistance Act of 1961 (as added
by section 2(b)(2) of this Act) is not in effect with respect to
the Palestinian Authority; and
(2) identifies any countries and international
organizations, including multilateral development banks, that
are providing direct assistance to the Palestinian Authority
during such a period, and describes the nature and amount of
such assistance.

SEC. 12.  NOTE: 22 USC 2378b note.  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.

[[Page 3326]]
120 STAT. 3326

(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).

Approved December 21, 2006.

LEGISLATIVE HISTORY--S. 2370 (H.R. 4681):
---------------------------------------------------------------------------

HOUSE REPORTS: No. 109-462, Pt. 1 (Comm. on International Relations) and
Pt. 2 (Comm. on the Judiciary), both accompanying H.R. 4681.
CONGRESSIONAL RECORD, Vol. 152 (2006):
June 23, considered and passed Senate.
Dec. 7, considered and passed House.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 42 (2006):
Dec. 21, Presidential statement.