Israeli-Palestinian Peace Enhancement Act of 2003 - Calls for: (1) the Palestinian administration to take security related steps to implement a performance based road map to resolve the Israeli-Palestinian conflict; and (2) the U.S. administration to work toward the two states living in peace within secure and internationally recognized boundaries.
Expresses the sense of Congress that a Palestinian state should not be recognized until the President makes specified determinations, including that new leadership of a Palestinian governing entity, not compromised by terrorism, has been elected and has taken appropriate measures to counter terrorism and terrorist financing in the West Bank and Gaza.
Amends the Foreign Assistance Act to allow U.S. assistance to be provided to a Palestinian state only: (1) during the effective period of a presidential certification that a binding international peace agreement exists between Israel and the Palestinians and that the new Palestinian government has been democratically elected, has renounced violence against Israel, has dismantled any group that conducts terrorism against Israel, is demilitarized, and has no agreements that threaten Israel's security; and (2) if the President has provided advance notice to Congress.
Authorizes the President to provide assistance to a Palestinian state to support activities to substantially improve the economy and living conditions of the Palestinians.
Directs the Secretary of State to seek to convene donors conferences to gain commitments from other countries, multilateral institutions, and non-governmental organizations to provide economic assistance to Palestinians.
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