Palestinian International Terrorism Support Prevention Act of 2019

IIB 116TH CONGRESS 1ST SESSION H. R. 1850 IN THE SENATE OF THE UNITED STATES JULY 24, 2019 Received; read twice and referred to the Committee on Foreign Relations AN ACT To impose sanctions with respect to foreign support for Palestinian terrorism, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 23:05 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1850.RFS H1850 kjohnson on DSK79L0C42 with BILLS 2 HR 1850 RFS SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Palestinian Inter- 2 national Terrorism Support Prevention Act of 2019’’. 3 SEC. 2. STATEMENT OF POLICY. 4 It shall be the policy of the United States— 5 (1) to prevent Hamas, the Palestinian Islamic 6 Jihad, or any affiliate or successor thereof from ac- 7 cessing its international support networks; and 8 (2) to oppose Hamas, the Palestinian Islamic 9 Jihad, or any affiliate or successor thereof from at- 10 tempting to use goods, including medicine and dual 11 use items, to smuggle weapons and other materials 12 to further acts of terrorism. 13 SEC. 3. IMPOSITION OF SANCTIONS WITH RESPECT TO FOR- 14 EIGN PERSONS AND AGENCIES AND INSTRU- 15 MENTALITIES OF FOREIGN STATES SUP- 16 PORTING HAMAS, THE PALESTINIAN ISLAMIC 17 JIHAD, OR ANY AFFILIATE OR SUCCESSOR 18 THEREOF. 19 (a) IDENTIFICATION.— 20 (1) IN GENERAL.—Not later than 180 days 21 after the date of the enactment of this Act, and an- 22 nually thereafter for a period not to exceed 3 years, 23 the President shall submit to the appropriate con- 24 gressional committees a report that identifies each 25 VerDate Sep 11 2014 23:05 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1850.RFS H1850 kjohnson on DSK79L0C42 with BILLS 3 HR 1850 RFS foreign person or agency or instrumentality of a for- 1 eign state that the President determines— 2 (A) knowingly assists in, sponsors, or pro- 3 vides significant financial or material support 4 for, or financial or other services to or in sup- 5 port of, the terrorist activities of any person de- 6 scribed in paragraph (2); or 7 (B) directly or indirectly, knowingly and 8 materially engaged in a significant transaction 9 with any person described in paragraph (2). 10 (2) PERSON DESCRIBED.—A person described 11 in this paragraph is a foreign person that the Presi- 12 dent determines— 13 (A) is a senior member of Hamas, the Pal- 14 estinian Islamic Jihad, or any affiliate or suc- 15 cessor thereof; 16 (B) is a senior member of a foreign ter- 17 rorist organization designated pursuant to sec- 18 tion 219 of the Immigration and Nationality 19 Act (8 U.S.C. 1189) whose members directly or 20 indirectly support the terrorist activities of 21 Hamas, the Palestinian Islamic Jihad, or any 22 affiliate or successor thereof by knowingly en- 23 gaging in a significant transaction with, or pro- 24 viding financial or material support for Hamas, 25 VerDate Sep 11 2014 23:05 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1850.RFS H1850 kjohnson on DSK79L0C42 with BILLS 4 HR 1850 RFS the Palestinian Islamic Jihad, or any affiliate 1 or successor thereof, or any person described in 2 subparagraph (A); or 3 (C) directly or indirectly, supports the ter- 4 rorist activities of Hamas, the Palestinian Is- 5 lamic Jihad, or any affiliate or successor there- 6 of by knowingly and materially assisting, spon- 7 soring, or providing financial or material sup- 8 port for, or goods or services to or in support 9 of, Hamas, the Palestinian Islamic Jihad, or 10 any affiliate or successor thereof, or any person 11 described in subparagraph (A) or (B). 12 (3) FORM OF REPORT.—Each report required 13 under paragraph (1) shall be submitted in unclassi- 14 fied form, but may contain a classified annex. 15 (4) EXCEPTION.— 16 (A) IN GENERAL.—The President shall not 17 be required to identify a foreign person or an 18 agency or instrumentality of a foreign state in 19 a report pursuant to paragraph (1)(B) if— 20 (i) the foreign person or agency or in- 21 strumentality of a foreign state notifies the 22 United States Government in advance that 23 it proposes to engage in a significant 24 VerDate Sep 11 2014 23:05 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1850.RFS H1850 kjohnson on DSK79L0C42 with BILLS 5 HR 1850 RFS transaction as described in paragraph 1 (1)(B); and 2 (ii) the President determines and noti- 3 fies the appropriate congressional commit- 4 tees in a classified form not less than 15 5 days prior to the foreign person or agency 6 or instrumentality of a foreign state engag- 7 ing in the significant transaction that the 8 significant transaction is in the national 9 interests of the United States. 10 (B) NON-APPLICABILITY.—Subparagraph 11 (A) shall not apply with respect to— 12 (i) an agency or instrumentality of a 13 foreign state which the Secretary of State 14 determines has repeatedly provided support 15 for acts of international terrorism pursu- 16 ant to section 1754(c) of the Export Re- 17 form Control Act of 2018, section 40 of 18 the Arms Export Control Act, section 19 620A of the Foreign Assistance Act of 20 1961, or any other provision of law; or 21 (ii) any significant transaction de- 22 scribed in paragraph (1)(B) that involves, 23 directly or indirectly, a foreign state de- 24 scribed in clause (i). 25 VerDate Sep 11 2014 23:05 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1850.RFS H1850 kjohnson on DSK79L0C42 with BILLS 6 HR 1850 RFS (b) IMPOSITION OF SANCTIONS.— 1 (1) IN GENERAL.—The President shall impose 2 two or more of the sanctions described in paragraph 3 (2) with respect to a foreign person or an agency or 4 instrumentality of a foreign state identified pursuant 5 to subsection (a). 6 (2) SANCTIONS DESCRIBED.—The sanctions re- 7 ferred to in paragraph (1) are the following: 8 (A) The President may direct the Export- 9 Import Bank of the United States not to give 10 approval to the issuance of any guarantee, in- 11 surance, extension of credit, or participation in 12 the extension of credit in connection with the 13 export of any goods or services to the foreign 14 person or agency or instrumentality of the for- 15 eign state, and the Export-Import Bank of the 16 United States shall comply with any such direc- 17 tion. 18 (B) No sales of any defense articles, de- 19 fense services, or design and construction serv- 20 ices under the Arms Export Control Act (22 21 U.S.C. 2751 et seq.) may be made to the for- 22 eign person or agency or instrumentality of the 23 foreign state. 24 VerDate Sep 11 2014 23:05 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1850.RFS H1850 kjohnson on DSK79L0C42 with BILLS 7 HR 1850 RFS (C) No licenses for export of any item on 1 the United States Munitions List that include 2 the foreign person or agency or instrumentality 3 of the foreign state as a party to the license 4 may be granted. 5 (D) No exports may be permitted to the 6 foreign person or agency or instrumentality of 7 the foreign state of any goods or technologies 8 controlled for national security reasons under 9 the Export Administration Regulations, except 10 that such prohibition shall not apply to any 11 transaction subject to the reporting require- 12 ments of title V of the National Security Act of 13 1947 (50 U.S.C. 413 et seq.; relating to con- 14 gressional oversight of intelligence activities). 15 (E) The President shall prohibit any 16 United States financial institution from making 17 loans or providing any credit or financing total- 18 ing more than $10,000,000 to the foreign per- 19 son or agency or instrumentality of the foreign 20 state, except that this subparagraph shall not 21 apply— 22 (i) to any transaction subject to the 23 reporting requirements of title V of the 24 National Security Act of 1947 (50 U.S.C. 25 VerDate Sep 11 2014 23:05 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1850.RFS H1850 kjohnson on DSK79L0C42 with BILLS 8 HR 1850 RFS 413 et seq.; relating to congressional over- 1 sight of intelligence activities); 2 (ii) to the provision of medicines, 3 medical equipment, and humanitarian as- 4 sistance; or 5 (iii) to any credit, credit guarantee, or 6 financial assistance provided by the De- 7 partment of Agriculture to support the 8 purchase of food or other agricultural com- 9 modities. 10 (F)(i) The President may exercise all pow- 11 ers granted to the President by the Inter- 12 national Emergency Economic Powers Act (50 13 U.S.C. 1701 et seq.) (except that the require- 14 ments of section 202 of such Act (50 U.S.C. 15 1701) shall not apply) to the extent necessary 16 to block and prohibit all transactions in all 17 property and interests in property of a foreign 18 person or agency or instrumentality of the for- 19 eign state if such property and interests in 20 property are in the United States, come within 21 the United States, or are or come within the 22 possession or control of a United States person. 23 (ii) The penalties provided for in sub- 24 sections (b) and (c) of section 206 of the Inter- 25 VerDate Sep 11 2014 23:05 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1850.RFS H1850 kjohnson on DSK79L0C42 with BILLS 9 HR 1850 RFS national Emergency Economic Powers Act (50 1 U.S.C. 1705) shall apply to a person that 2 knowingly violates, attempts to violate, con- 3 spires to violate, or causes a violation of regula- 4 tions promulgated under section 6(b) to carry 5 out clause (i) to the same extent that such pen- 6 alties apply to a person that knowingly commits 7 an unlawful act described in section 206(a) of 8 that Act. 9 (iii) The President may exercise all au- 10 thorities provided to the President under sec- 11 tions 203 and 205 of the International Emer- 12 gency Economic Powers Act (50 U.S.C. 1702 13 and 1704) for purposes of carrying out clause 14 (i). 15 (3) EXCEPTION.—The President shall not be 16 required to apply sanctions with respect to a foreign 17 person or an agency or instrumentality of a foreign 18 state identified pursuant to subsection (a) if the 19 President certifies in writing to the appropriate con- 20 gressional committees that— 21 (A) the foreign person or agency or instru- 22 mentality of the foreign state— 23 (i) is no longer carrying out activities 24 or transactions for which the sanctions 25 VerDate Sep 11 2014 23:05 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1850.RFS H1850 kjohnson on DSK79L0C42 with BILLS 10 HR 1850 RFS were imposed pursuant to this subsection; 1 or 2 (ii) has taken and is continuing to 3 take significant verifiable steps toward ter- 4 minating the activities or transactions for 5 which the sanctions were imposed pursuant 6 to this subsection; and 7 (B) the President has received reliable as- 8 surances from the foreign person or agency or 9 instrumentality of the foreign state that it will 10 not carry out any activities or transactions for 11 which sanctions may be imposed pursuant to 12 this subsection in the future. 13 (c) WAIVER.— 14 (1) IN GENERAL.—The President may waive, 15 on a case by case basis and for a period of not more 16 than 180 days, a requirement under subsection (b) 17 to impose or maintain sanctions with respect to a 18 foreign person or agency or instrumentality of a for- 19 eign state if the President— 20 (A) determines that the waiver is in the 21 national security interest of the United States; 22 and 23 (B) not less than 30 days before the waiv- 24 er takes effect, submits to the appropriate con- 25 VerDate Sep 11 2014 23:05 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1850.RFS H1850 kjohnson on DSK79L0C42 with BILLS 11 HR 1850 RFS gressional committees a report on the waiver 1 and the justification for the waiver. 2 (2) RENEWAL OF WAIVER.—The President 3 may, on a case by case basis, renew a waiver under 4 paragraph (1) for additional periods of not more 5 than 180 days if the President— 6 (A) determines that the renewal of the 7 waiver is in the national security interest of the 8 United States; and 9 (B) not less than 15 days before the waiv- 10 er expires, submits to the appropriate congres- 11 sional committees a report on the renewal of 12 the waiver and the justification for the renewal 13 of the waiver. 14 (d) RULE OF CONSTRUCTION.—The authority to im- 15 pose sanctions under subsection (b) with respect to a for- 16 eign person or an agency or instrumentality of a foreign 17 state identified pursuant to subsection (a) is in addition 18 to the authority to impose sanctions under any other pro- 19 vision of law with respect to foreign persons or agencies 20 or instrumentalities of foreign states that directly or indi- 21 rectly support international terrorism. 22 (e) DEFINITIONS.—In this section: 23 VerDate Sep 11 2014 23:05 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1850.RFS H1850 kjohnson on DSK79L0C42 with BILLS 12 HR 1850 RFS (1) FOREIGN STATE.—The term ‘‘foreign state’’ 1 has the meaning given such term in section 1603(a) 2 of title 28, United States Code. 3 (2) AGENCY OR INSTRUMENTALITY.—The term 4 ‘‘agency or instrumentality’’ has the meaning given 5 such term in section 1603(b) of title 28, United 6 States Code. 7 (f) EFFECTIVE DATE.—This section shall take effect 8 on the date of the enactment of this Act and apply with 9 respect to activities and transactions described in sub- 10 section (a) that are carried out on or after such date of 11 enactment. 12 SEC. 4. IMPOSITION OF SANCTIONS WITH RESPECT TO FOR- 13 EIGN GOVERNMENTS THAT PROVIDE MATE- 14 RIAL SUPPORT FOR THE TERRORIST ACTIVI- 15 TIES OF HAMAS, THE PALESTINIAN ISLAMIC 16 JIHAD, OR ANY AFFILIATE OR SUCCESSOR 17 THEREOF. 18 (a) IDENTIFICATION.— 19 (1) IN GENERAL.—Not later than 180 days 20 after the date of the enactment of this Act, and 21 every 180 days thereafter, the President shall sub- 22 mit to the appropriate congressional committees a 23 report that identifies the following: 24 VerDate Sep 11 2014 23:05 Jul 24, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H1850.RFS H1850 kjohnson on DSK79L0C42 with BILLS 13 HR 1850 RFS (A) Each government of a foreign coun- 1 try— 2 (i) with respect to which the Secretary 3 of State determines has repeatedly pro- 4 vided support for acts of international ter- 5 rorism pursuant to section 1754(c) of the 6 Export Control Reform Act of 2018, sec- 7 tion 40 of the Arms Export Control Act, 8 section 620A of the Foreign Assistance Act 9 of 1961, or any other provision of law; and 10 (ii) with respect to which the [Text truncated for display. 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