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The Palestinian Anti-Terrorism Act of 2006 (Public Law 109-446, 120 Stat. 3318-3326) states that it shall be United States policy to: (1) 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) oppose all who support terrorism and violently reject a two-state solution to end the Israeli-Palestinian conflict; (3) promote the rule of law, democracy, the cessation of terrorism and incitement, and good governance in institutions and territories controlled by the Palestinian Authority (PA); and (4) 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.

It amends the Foreign Assistance Act of 1961 to provide assistance under such Act to the Hamas-controlled PA only during a period for which a presidential certification has determined that: (1) no PA ministry, agency, or instrumentality is controlled by Hamas unless the Hamas-controlled PA has publicly acknowledged Israel's right to exist and is adhering to all previous agreements and understandings with the United States, Israel, and the international community; and (2) the Hamas-controlled PA has made demonstrable progress toward purging from its security services individuals with ties to terrorism, dismantling all terrorist infrastructure and cooperating with Israel's security services, halting anti-American and anti-Israel incitement, and ensuring democracy and financial transparency.

It directs the President to make and transmit such recertifications to Congress every six months.

It states that assistance to the PA may not be provided until 15 days after the date on which the President has provided notice to the Committees on International Relations and on Appropriations of the House of Representatives and to the Committees on Foreign Relations and on Appropriations of the Senate (Committees) in accordance with specified reprogramming notification provisions under such Act.
It exempts from such limitation, upon certification to Congress, assistance for specified costs, activities, and entities of the PA.

It states that: (1) assistance may be provided under such Act to nongovernmental organizations for the West Bank and Gaza only during a period for which a certification is in effect; and (2) such assistance shall be marked as assistance from the American people or the government of the United States unless the Secretary of State (Secretary) or the Administrator of the United States Agency for International Development (USAID) determines otherwise.

It exempts certain categories of assistance from such limitations.

It provides presidential notification requirements.

It directs the Secretary, for fiscal years 2007 and 2008, to certify to the Committees that the Government Accountability Office will have access to appropriate U.S. financial information in order to review assistance use.

It directs the Secretary to take steps prior to obligating funds to ensure such assistance is not provided to or through an individual or entity with terrorist ties.

It sets forth auditing requirements.

It sets forth the sense of Congress that during any period for which a certification is not in effect the PA-controlled territory should be deemed to be in use as a terrorist sanctuary for purposes of the Export Administration Act of 1979 and the Foreign Relations Authorization Act, Fiscal Years 1988 and 1989.

It prohibits during any period in which a certification is not in effect visa issuance to any alien who is an official of, affiliated with, or serving as a Hamas-led PA representative, except: (1) the President of the PA and his or her personal representatives, provided that the President of the PA and such 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.

It states that the President, during any period in which a certification is not in effect, should restrict to a 25-mile radius of U.N. headquarters the travel of PA and Palestine Liberation Organization officials and representatives, other than the President of the PA and his or her personal representatives, who are stationed at the United Nations.

It prohibits during any period in which a certification is not in effect establishment of an office, headquarters, premises, or other facilities within U.S. jurisdiction at the direction of, or with funds provided by, the PA.

It authorizes the President to waive such prohibition upon certification to the Committees that such waiver is vital to U.S. national security interests.

It states that the President should direct the U.S. executive director at each international financial institution to use U.S. influence to prohibit assistance to the PA unless a certification is in effect. It exempts from such prohibition: (1) assistance for basic human health needs; and (2) assistance to promote democracy, provided that such assistance does not directly benefit any foreign terrorist organization.

It prohibits funds for the State Department from being used by any U.S. officer or employee to negotiate with members or official representatives any Palestian terrorist organization (except in emergency or humanitarian situations) until such organization: (1) recognizes Israel's right to exist; (2) renounces terrorism; (3) dismantles the terrorist infrastructure; and (4) recognizes all previous agreements and understandings between Israel and the PA.

It directs the Secretary to establish the Israeli-Palestinian Peace, Reconciliation and Democracy Fund.

It requires the Secretary to submit an annual report to the Committees.

It authorizes fiscal year 2007 appropriations.

It directs the Secretary to submit an annual report to the Committees concerning direct assistance to the PA by other countries and international entities.

It defines "appropriate congressional committees" and "Palestinian Authority" for purposes of this Act. (Bill: S. 2370)