,,ii #aafth ,,congress #ast ,session ,s4 #agbg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #e1 #bjai,mr4 ,coons 7for himself1 ,mr4 ,graham1 ,mr4 ,kaine1 and ,mr4 ,gardner7 introduced the following bill2 which was read twice and referred to the ,committee on ,foreign ,relations ,a ,,bill ,to establish the ,partnership ,fund for ,peace to promote joint economic development and finance ventures between ,palestinian entrepreneurs and companies and those in the ,united ,states and ,israel to improve economic cooperation and people-to-people peacebuilding programs1 and to further shared community building1 peaceful coexistence1 dialogue1 and reconciliation between ,israelis and ,palestinians4 #a4 ,short title ,this ,act may be cited as the ,partnership ,fund for ,peace ,act of #bjai4 #b4 ,findings ,congress finds the following3 7#a7 ,economic development in conflict settings has been shown to support stabilization by empowering entrepreneurs1 growing the middle class1 and mitigating unemployment4 7#b7 ,in #bjah1 unemployment in the ,palestinian territories was #cb4d percent1 reaching #ec4g percent in ,gaza and #ah percent in the ,west ,bank4 ,,gdp growth in the ,palestinian territories declined from #b4g percent in #bjag to #b percent in #bjah1 and it is projected to further decline to between #a4g and #a4i percent in #bjai and #bjbj4 7#c7 ,increased economic activity and projects to improve the quality and conditions of life for the ,palestinians will help create a viable ,palestinian economy4 7#d7 ,although economic development is an important tool for stabilizing conflict-prone settings and establishing connections between communities1 economic development by itself will not lead to lasting peace4 ,people-to-people peacebuilding programs further advance reconciliation efforts by promoting greater understanding1 mutual trust1 and cooperation between communities4 7#e7 ,while the ,united ,states and its international allies continue to support diplomatic and political negotiations between the representatives of the parties to the ,israeli-,palestinian conflict1 such efforts require broad popular support among the people on the ground to succeed4 7#f7 ,achieving sustainable1 high-level agreements for lasting peace in the ,middle ,east must come through1 and with the support of1 the people who live there4 7#g7 ,economic initiatives and people-to-people peacebuilding programs can help millions of ordinary ,israelis and ,palestinians affected by the ongoing conflict in the ,middle ,east4 #c4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 building a viable ,palestinian economy is central to the effort to preserve the possibility of a #b-state solution2 7#b7 strengthening engagement between the ,palestinian territories1 the ,united ,states and ,israel in the areas of economic development and people-to-people peacebuilding programs will-- 7,a7 increase the bonds of friendship and understanding between the people living in the ,palestinian territories and the people of the ,united ,states and ,israel2 and 7,b7 advance the state of research and development in multiple sectors to the benefit of all parties2 7#c7 cooperation between the business sectors of the ,palestinian territories1 the ,united ,states and ,israel will benefit the ,palestinian1 ,american1 and ,israeli people and should be encouraged2 and 7#d7 ,united ,states and international support for grassroots1 people-to-people efforts aimed at shared reconciliation and fostering tolerance can help counter extremist propaganda and the growing issue of incitement4 #d4 ,partnership ,fund for ,peace 7a7 ,establishment 7#a7 ,in general ,the ,administrator of the ,united ,states ,agency for ,international ,development1 in consultation with the ,secretary of ,state and the ,secretary of the ,treasury1 shall establish the ,partnership ,fund for ,peace 7referred to in this section as the ,fund71 which-- 7,a7 shall be funded with amounts appropriated pursuant to section #e2 and 7,b7 managed by the ,administrator of the ,united ,states ,agency for ,international ,development4 7#b7 ,contributions ,the ,administrator of the ,united ,states ,agency for ,international ,development1 in consultation with the ,secretary of ,state and the ,secretary of the ,treasury1 shall seek additional contributions for the ,fund from the international community1 including countries in the ,middle ,east and ,europe4 7b7 ,governance 7#a7 ,board of governors 7,a7 ,appointment ,except as provided in subparagraph 7,d71 the ,fund shall be governed by a ,board of ,governors1 which shall be composed of #e private1 ,united ,states citizens or legal permanent residents1 who shall be appointed by the ,administrator of the ,united ,states ,agency for ,international ,development1 in consultation with the ,secretary of ,state1 the ,speaker of the ,house of ,representatives1 the minority leader of the ,house of ,representatives1 the majority leader of the ,senate1 and the minority leader of the ,senate4 7,b7 ,qualifications 7i7 ,general experience ,members of the ,board of ,governors shall be selected from among people who have demonstrated experience and expertise in the affairs related to ,israel and the ,palestinian territories4 7ii7 ,business experience ,not fewer than #b members of the ,board of ,governors shall have-- 7,i7 demonstrated experience and expertise in international and particularly emerging markets investment activities1 such as private equity or venture capital investment1 banking1 finance1 strategic business consulting1 or entrepreneurial business creation2 and 7,,ii7 backgrounds in priority business sectors of the ,palestinian economy4 7iii7 ,conflict mitigation experience ,not fewer than #b members of the ,board of ,governors shall have demonstrated experience and expertise in conflict mitigation and people-to-people programs4 7iv7 ,,usaid official ,the ,administrator of the ,united ,states ,agency for ,international ,development 7,,usaid7 shall appoint #a ,,usaid official as a member of the ,board of ,governors4 7,c7 ,responsibilities ,the ,board of ,governors shall-- 7i7 determine the amount annually allocated from the ,fund for each ,technical ,board2 and 7ii7 approve the ,technical ,boards' recommendations1 as appropriate4 7,d7 ,international donor seats ,with the approval of the existing ,board of ,governors1 the ,administrator may appoint up to #b additional members to the ,board who shall-- 7i7 represent international organizations or foreign governments that have donated to the ,fund2 and 7ii7 meet the qualifications set forth in subparagraph 7,b77i74 7,e7 ,technical boards 7i7 ,establishment ,the ,board of ,governors shall establish-- 7,i7 a ,business and ,economic ,development ,technical ,board2 and 7,,ii7 a ,people-to-,people ,programs ,technical ,board4 7ii7 ,appointments ,members of the technical boards established pursuant to clause 7i7 shall be appointed by the ,administrator of the ,united ,states ,agency for ,international ,development4 7iii7 ,investment approval and recommendations ,the technical boards established pursuant to clause 7i7-- 7,i7 may approve investments of ,fund assets up to #bej1jjj2 and 7,,ii7 may recommend investments of ,fund assets greater than #bej1jjj1 which shall be subject to the approval of the ,board of ,governors4 7iv7 ,staff ,each technical board established pursuant to clause 7i7 shall consist of a ,secretariat1 which shall be staffed by individuals with demonstrated experience and expertise relevant to the technical board on which they sit4 7c7 ,purposes ,the purposes of the ,fund are-- 7#a7 to promote the private sector in the ,palestinian territories through facilitating and financing between small- and medium-sized ,palestinian entrepreneurs and companies and those in the ,united ,states1 ,israel1 and other countries to improve the ,palestinian private sector through economic cooperation in research and development2 7#b7 to improve the quality of life1 stimulate the economy1 and advance security by creating private sector jobs for ,palestinians in the ,palestinian territories and furthering the development of a ,palestinian middle class2 and 7#c7 to further shared community building1 peaceful coexistence1 dialogue1 and reconciliation between ,israelis and ,palestinians by financing people-to-people peacebuilding programs4 7d7 ,uses of funds ,amounts deposited into the ,fund may be used-- 7#a7 to carry out the purposes set forth in subsection 7c72 and 7#b7 to pay for the administrative expenses of operating the ,fund4 7e7 ,economic partnerships 7#a7 ,in general ,all economic partnerships requesting support from the ,fund shall include a ,palestinian entrepreneur or company in the ,palestinian territories and an entrepreneur or company from the ,united ,states or ,israel4 7#b7 ,tripartite agreements ,if an entrepreneur or company outside of the ,united ,states or ,israel desires to partner with a ,palestinian entrepreneur or company1 a tripartite agreement shall be established that includes an entrepreneur or company from the ,united ,states or ,israel4 7#c7 ,priority ,the ,board of ,governors and the technical boards established pursuant to subsection 7b77#a77;,e77i7 should prioritize partnerships between ,israeli and ,palestinian entrepreneurs and companies4 7#d7 ,funding requirement ,during each fiscal year1 not less than #be percent of the funding allocated from the ,fund for economic partnerships shall be awarded to partnerships that include-- 7,a7 ,palestinian entrepreneurs or companies based in the ,palestinian territories2 and 7,b7 ,israeli entrepreneurs or companies based in ,israel4 7f7 ,people-to-,people partnerships ,all people-to-people partnerships requesting support from the ,fund shall include-- 7#a7 a ,palestinian nonprofit organization1 an ,israeli nonprofit organization1 or an international nonprofit organization that brings ,palestinians and ,israelis together for shared community building1 peaceful coexistence1 dialogue1 and reconciliation2 or 7#b7 nonprofit organizations that further shared community building1 peaceful coexistence1 dialogue1 and reconciliation between ,arab and ,jewish citizens of ,israel4 7g7 ,alternative funding streams ,the ,board of ,governors should explore initiatives to promote long-term financial sustainability of the ,fund through revenue accrued by successful ventures4 7h7 ,limitations1 vetting1 and oversight 7#a7 ,limitations ,none of the funds made available under this ,act may be made available for-- 7,a7 financial assistance to national governments2 7,b7 assistance for any individual or group that the ,administrator of the ,united ,states ,agency for ,international ,development1 in consultation with the heads of other relevant ,federal agencies1 determines to be-- 7i7 involved in1 or advocating1 terrorist activity2 or 7ii7 a member of a foreign terrorist organization 7as designated pursuant to section #bai of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aahi772 or 7,c7 assistance for the ,palestinian ,authority1 ,hamas1 or the ,palestine ,liberation ,organization4 7#b7 ,applicable laws ,assistance from the ,fund shall be subject to all relevant laws relating to ,united ,states ,government assistance1 including to the ,palestinians4 7#c7 ,compliance with mission directives ,all expenditures from the ,fund shall follow the mission directives applicable to the ,west ,bank and ,gaza that have been issued by ,united ,states ,agency for ,international ,development ,mission ,director or ,contracting ,officer4 7#d7 ,,usaid inspector general ,all operations and expenditures of the ,fund shall be subject to audits1 investigations1 and inspections conducted by the ,office of the ,inspector ,general at the ,united ,states ,agency for ,international ,development4 7#e7 ,,gao ,all operations and expenditures of the ,fund shall be subject to assessment by the ,government ,accountability ,office4 7i7 ,annual report 7#a7 ,in general ,not later than #ij days after the end of the fiscal year during which the ,fund is established and annually thereafter1 the ,administrator of the ,united ,states ,agency for ,international ,development shall submit a written report to the ,committee on ,foreign ,relations of the ,senate1 the ,committee on ,appropriations of the ,senate1 the ,committee on ,foreign ,affairs of the ,house of ,representatives1 and the ,committee on ,appropriations of the ,house of ,representatives that describes the extent to which the ,fund1 and ,united ,states contributions to the ,fund1 have contributed-- 7,a7 to promoting and supporting joint economic development2 7,b7 to integrating the ,palestinian economy into the international business system2 and 7,c7 to furthering contact1 cooperation1 dialogue1 and reconciliation between ,israelis and ,palestinians4 7#b7 ,matters to be included ,each report under paragraph 7#a7 shall include-- 7,a7 information regarding-- 7i7 contributions pledged to1 contributions 7including donations from the private sector7 received by1 and projects funded by the ,fund2 and 7ii7 the mechanisms established for transparency and accountability in the grant making and investment process2 7,b7 a description of the ,fund's operations1 activities1 budget1 receipts1 and expenditures for the preceding #ab-month period1 including an audited report of the ,fund's finances1 including statements of financial position1 operations1 and cash flows1 in accordance with generally accepted government auditing standards prescribed by the ,comptroller ,general of the ,united ,states2 7,c7 insights gleaned from improvements to the efficacy of people-to-people relationships2 7,d7 a description of potential strategies for achieving sustainability for civic institutions that the ,fund creates or supports1 including novel financing mechanisms2 and 7,e7 a description of the process for vetting and oversight of entities eligible for support from the ,fund to ensure compliance with subsection 7h74 #e4 ,authorization of appropriations 7a7 ,in general ,there is authorized to be appropriated #ej1jjj1jjj for each of the first #e fiscal years beginning after the date of the enactment of this ,act4 7b7 ,availability ,amounts appropriated pursuant to subsection 7a7 shall be used for ,united ,states contributions to the ,partnership ,fund for ,peace established pursuant to section #d7;a74