Under “Sense of Congress” section: states that Israeli-Palestinian peace cannot be negotiated until “the Palestinian system of government has been transformed along the lines outlined in President Bush's June 24, 2002, speech; congratulates Palestinians on election of Mahmud Abbas as the Prime Minster of the PA; the PA must take urgent steps in security reform as per the roadmap; the U.S. should work hard for two-state solution; and the U.S. has a vital national security interest in a comprehensive resolution to the Arab-Israeli problem and the Palestinian-Israeli problem based on UNSC Res. 242 and 338.
Under “Recognition of a Palestinian State” section: the president should not recognize a new Palestinian state until a new Palestinian leadership meets the following 8 conditions, not compromised by terror, has been elected. Also that the newly elected leadership must demonstrate a desire for peaceful coexistence with Israel; ends anti-Israel incitement; fights terror and dismantles terrorist infrastructure in the WB and Gaza; establishes new security agencies that cooperate fully with Israeli security agencies; establishes itself as the sole authority of Palestinian affairs and ensures democracy, rule of law, independent judiciary, and other reforms ensuring transparent and accountable government; and the education system promotes peace with Israel.
Under “Limitation on Assistance to a Palestinian State” section: U.S. assistance can go to the government of a Palestinian state only when the president, except in cases of a presidential waiver, can certify the following 12 conditions, and to be enforced for 10 years: that a binding international peace treaty has been signed by Israel and the Palestinians that adheres to the following 4 conditions: 1) was freely signed by both parties, 2) guarantees both parties’ commitment to an internationally recognized border with no outstanding land claims, 3) provides a permanent solution for Palestinian refugees and Jewish refugees from Arab countries, 4) and a renunciation of all Palestinian claims against Israel. The remaining 8 conditions pertain to the new Palestinian government the bill envisions as described above. The prohibition on U.S. assistance does not include humanitarian assistance or funds for the required political, security, or economic reforms.
See also: companion measures S. 1029 on 5/8/03 and S. 1944 on 11/24/03. Portions of these bills were included in H.R. 2673 on 7/9/03, the FY2004 appropriations bill that was passed and included numerous federal agencies, including the State Dept.