SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Middle East Peace Compliance Act of 
2001''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) On September 9, 1993, Palestinian Liberation 
        Organization (PLO) Chairman Yasser Arafat made the following 
        commitments in an exchange of letters with Prime Minister of 
        Israel Yitzhak Rabin:
                    (A) ``The PLO recognizes the right of the State of 
                Israel to exist in peace and security.''.
                    (B) ``The PLO accepts United Nations Security 
                Council Resolutions 242 and 338'' pertaining to the 
                cessation of hostilities and the establishment of a 
                just and lasting peace in the Middle East.
                    (C) ``The PLO commits itself to the Middle East 
                peace process, and to a peaceful resolution of the 
                conflict between the two sides and declares that all 
                outstanding issues relating to permanent status will be 
                resolved through negotiations.''.
                    (D) ``The PLO considers that the signing of the 
                Declaration of Principles constitutes a historic event, 
                inaugurating a new epoch of peaceful coexistence, free 
                from violence and all other acts which endanger peace 
                and stability. Accordingly, the PLO renounces the use 
                of terrorism and other acts of violence and will assume 
                responsibility over all PLO elements and personnel in 
                order to assure their compliance, prevent violence and 
                discipline violators.''.
                    (E) ``In view of the promise of a new era and the 
                signing of the Declaration of Principles and based on 
                Palestinian acceptance of Security Council Resolutions 
                242 and 338, the PLO affirms that those articles of the 
                Palestinian Covenant which deny Israel's right to 
                exist, and the provisions of the Covenant which are 
                inconsistent with the commitments of this letter are 
                now inoperative and no longer valid.''.
            (2) The Palestinian Authority, the governing body of 
        autonomous Palestinian territories, was created as a result of 
        the agreements between the PLO and the State of Israel that are 
        a direct outgrowth of the September 9, 1993, commitments.
            (3) The United States Congress has provided authorities to 
        the President to suspend certain statutory restrictions 
        relating to the PLO, subject to Presidential certification that 
        the PLO has continued to abide by commitments made.

SEC. 3. REPORTS.

    (a) In General.--The President shall, at the times specified in 
subsection (b), transmit to Congress a report--
            (1) detailing and assessing the steps that the PLO or the 
        Palestinian Authority, as appropriate, has taken to 
        substantially comply with its 1993 commitments, as specified in 
        section 2(1) of this Act;
            (2) a description of the steps taken by the PLO or the 
        Palestinian Authority, as appropriate, to investigate and 
        prosecute those responsible for violence against American and 
        Israeli citizens;
            (3) making a determination as to whether the PLO or the 
        Palestinian Authority, as appropriate, has substantially 
        complied with such commitments during the period since the 
        submission of the preceding report, or, in the case of the 
        initial report, during the preceding 6-month period; and
            (4) detailing progress made in determining the designation 
        of the PLO, or one or more of its constituent groups (including 
        Fatah and Tanzim) or groups operating as arms of the 
        Palestinian Authority (including Force 17) as a foreign 
        terrorist organization, in accordance with section 219(a) of 
        the Immigration and Nationality Act.
    (b) Transmission.--The initial report required under subsection (a) 
shall be transmitted not later than 30 days after the date of enactment 
of this Act. Each subsequent report shall be submitted on the date on 
which the President is next required to submit a report under the PLO 
Commitments Compliance Act of 1989 (title VIII of Public Law 101-246) 
and may be combined with such report.

SEC. 4. IMPOSITION OF SANCTIONS.

    (a) In General.--If, in any report transmitted pursuant to section 
3, the President determines that the PLO or Palestinian Authority, as 
appropriate, has not substantially complied with the commitments 
specified in section 2(1), the following sanctions shall apply:
            (1) Suspension of assistance.--The President shall suspend 
        all United States assistance to the West Bank and Gaza except 
        for humanitarian assistance.
            (2) Additional sanction or sanctions.--The President shall 
        impose one or more of the following sanctions:
                    (A) Denial of visas to plo and palestinian 
                authority figures.--The President shall prohibit the 
                Secretary of State from issuance of any visa for any 
                member of the PLO or any official of the Palestinian 
                Authority.
                    (B) Downgrade in status of plo office in the united 
                states.--Notwithstanding any other provision of law, 
                the President shall withdraw or terminate any waiver by 
                the President of the requirements of section 1003 of 
                the Foreign Relations Authorization Act of 1988 and 
                1989 (22 U.S.C. 5202) (prohibiting the establishment or 
                maintenance of a Palestinian information office in the 
                United States), and such section shall apply so as to 
                prohibit the operation of a PLO or Palestinian 
                Authority office in the United States from carrying out 
                any function other than those functions carried out by 
                the Palestinian information office in existence prior 
                to the Oslo Accord.
    (b) Duration of Sanctions.--The period of time referred to in 
subsection (a) is the period of time commencing on the date that the 
report pursuant to section 3 was transmitted and ending on the later 
of--
            (1) the date that is 6 months after such date;
            (2) the date that the next report under section 3 is 
        required to be transmitted; or
            (3) the date, if any, on which the President determines and 
        informs Congress that the conditions that were the basis for 
        imposing the sanctions are no longer valid.
    (c) Waiver Authority.--The President may waive any or all of the 
sanctions imposed under this Act if the President determines that such 
a waiver is in the national security interest of the United States, and 
reports such a determination to the appropriate committees of Congress.

SEC. 5. EFFECTIVE DATE; TERMINATION DATE.

    (a) Effective Date.--This Act shall take effect on the date of 
enactment of this Act.
    (b) Termination Date.--This Act shall cease to be effective 5 years 
after the date of enactment of this Act.
Middle East Peace Compliance Act of 2001 - Imposes specified sanctions with respect to the Palestine Liberation Organization (PLO) or the Palestinian Authority if the President determines that such entities have not substantially complied with certain commitments made with Israel. Authorizes the President to waive such sanctions in the U.S. national security interest.
A bill to impose sanctions against the PLO or the Palestinian Authority if the President determines that those entities have failed to substantially comply with commitments made to the State of Israel.