SECTION 1. SHORT TITLE.

This Act may be cited as the "Palestinian Democracy Support 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 to promote the emergence of a democratic Palestinian government that:

(1) denounces and combats terrorism;
(2) has agreed to and is taking action to disarm and dismantle any terrorist agency, network, or facility;
(3) has agreed to work to eliminate anti-Israel and anti-Semitic incitement and the commemoration of terrorists in Palestinian society;
(4) has agreed to respect the boundaries and sovereignty of its neighbors;
(5) acknowledges, respects, and upholds the human rights of all people;
(6) conducts free, fair, and transparent elections in compliance with international standards;
(7) ensures institutional and financial transparency and accountability; and
(8) has agreed to recognize the State of Israel as an independent, sovereign, Jewish, democratic state.

(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 or any other provision of law 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) the Palestinian Authority is not controlled by a foreign terrorist organization and does not include members of a foreign terrorist organization; and
(2) the Palestinian Authority -

(A) has completed the process of purging from its security services individuals with ties to terrorism;
(B) has dismantled the terrorist infrastructure and is confiscating unauthorized weapons, arresting and bringing terrorists to justice, destroying unauthorized arms factories, thwarting and preempting terrorist attacks, and is fully cooperating with Israel's security services;
(C) has publicly acknowledged Israel's right to exist as a Jewish state;
(D) has halted all anti-Israel incitement in Palestinian Authority-controlled electronic and print media and in schools, mosques, and other institutions it controls, and is replacing these materials, including textbooks, with materials that promote tolerance, peace, and coexistence with Israel;
(E) has taken effective steps to ensure democracy, the rule of law, and an independent judiciary, and has adopted other reforms such as ensuring transparent and accountable governance; and
(F) has undertaken efforts to ensure the financial transparency and accountability of all government ministries and operations.

(c) RECERTIFICATIONS - Not later than 90 days after the date on which the President transmits to Congress an initial certification under subsection (b), and every six months thereafter -
(1) the President shall transmit to Congress a recertification that the requirements contained in subsection (b) are continuing to be met; or
(2) if the President is unable to make such a recertification, the President shall transmit to Congress a report that contains the reasons therefor.

(d) CONGRESSIONAL NOTIFICATION - Assistance made available under this Act or any other provision of law 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) DEFINITIONS.In this section:
(1) FOREIGN TERRORIST ORGANIZATION. - The term "foreign terrorist organization" means an organization designated as a foreign terrorist organization by the Secretary of State in accordance with section 219(a) of the Immigration and Nationality Act (8 U.S.C. 1189(a)).

(2) PALESTINIAN AUTHORITY - The term "Palestinian Authority":

(A) means the interim administrative organization that governs parts of the West Bank and all of the Gaza Strip (or any successor Palestinian governing entity); and
(B) includes the Palestinian Legislative Council, municipalities of the Palestinian Authority, and any other agency or instrumentality of the Palestinian Authority.

(c) REPORT BY COMPTROLLER GENERAL. Not later than 180 days after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the appropriate congressional committees a report thatcontains a review of the extent to which United States assistance to the Palestinian Authority under the Foreign Assistance Act of 1961 or any other provision of law is properly audited by the Department of State, the United States Agency for International Development, and all other relevant departments and agencies of the Government of the United States.

SEC. 3. UNITED NATIONS AGENCIES AND PROGRAMS.

(a) DEPARTMENT OF STATE REVIEW AND REPORT.

(1) IN GENERAL - Not later than 60 days after the date of the enactment of this Act, the Secretary of State shall -
(A) conduct an audit of the functions of the entities specified in paragraph (2); and
(B) submit to the appropriate congressional committees a report containing recommendations for the elimination of such dupli1cative entities and efforts.

(2) ENTITIES SPECIFIED. The entities referred to in paragraph (1) are the following:
(A) The United Nations Division for Palestinian Rights.
(B) The Committee on the Exercise of the Inalienable Rights of the Palestinian People.
(C) The United Nations Special Coordinator for the Middle East Peace Process and Personal Representative to the Palestine Liberation Organization and the Palestinian Authority.
(D) The NGO Network on the Question of Palestine.
(E) The Special Committee to Investigate Israeli Practices Affecting the Human Rights of the Palestinian People and Other Arabs of the Occupied Territories.
(F) Any other entity the Secretary determines results in duplicative efforts or funding or fails to ensure balance in the approach to Israeli-Palestinian issues.

(b) IMPLEMENTATION OF RECOMMENDATIONS BY PERMANENT REPRESENTATIVE -
(1) IN GENERAL. The President shall direct the United States Permanent Representative to the United Nations to use the voice, vote, and influence
of the United States at the United Nations to seek the implementation of the recommendations contained in the report required under subsection (a)(1)(B).
(2) WITHHOLDING OF FUNDS - Until such recommendations have been implemented, the United States shall withhold from United States contributions to the regular assessed budget of the United Nations for a biennial period amounts that are proportional to the percentage of such budget that are expended for such entities.

(c) GAO AUDIT - The Comptroller General shall conduct an audit of the status of the implementation of the recommendations contained in the report required under subsection (a)(1)(B).

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 Pal1estinian Authority should be deemed to be in use as a sanctuary for terrorists or terrorist organizations for purposes of section 6(j)(5) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(5)) and section 140 of the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989 (22 U.S.C. 2656f).

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

(a) IN GENERAL - A visa shall not be issued to any alien who is an official of, affiliated with, or serving as a representative of the Palestinian Authority during any period for which a certification described in section 620K(b) of the Foreign Assistance Act of 1961 (as added by section 2(b)(2) of this Act) is not in effect with respect to the Palestinian Authority.
(b) WAIVER. Subsection (a) shall not apply if the President determines and certifies to the appropriate congressional committees, on a case-by-case basis, that the issuance of a visa to an alien described in such subsection
is vital to the national security interests of the United States.

SEC. 6. TRAVEL RESTRICTIONS ON OFFICIALS AND REPRESENTATIVES OF THE PALESTINIAN AUTHORITY STATIONED AT THE UNITED NATIONS IN NEW YORK CITY.

(a) TRAVEL RESTRICTIONS. Notwithstanding any other provision of law, the President shall restrict the travel of officials and representatives of the Palestinian Authority 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) COUNTRY DESCRIBED - A country referred to in subsection (a) is a country the government of which the Secretary of State has determined, for purposes of section 6(j)(1)(A) of the Export Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)(A)), is a government that has repeatedly provided support for acts of international terrorism.

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

(a) PROHIBITION - Notwithstanding any other provision of law, it shall be unlawful to establish or maintain an office, headquarters, premises, or other facilities or establishments within the jurisdiction of the United States at the behest or direction of, or with funds provided by, the Palestinian Authority during any period for which a certification described in section 620K(b) of the Foreign Assistance Act of 1961 (as added by section 2(b)(2) of this Act) is not in effect with respect to the Palestinian Authority.
(b) ENFORCEMENT -

(1) ATTORNEY GENERAL.The Attorney General shall take the necessary steps and institute the necessary legal action to effectuate the policies and
provisions of subsection (a).
(2) RELIEF.Any district court of the United States for a district in which a violation of subsection (a) occurs shall have authority, upon petition of relief by the Attorney General, to grant injunctive and such other equitable relief as it shall deem necessary to enforce the provisions of subsection (a).

SEC. 8. 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
17 of 1961 (as added by section 2(b)(2) of this Act).