Under the Oslo II Accord, the powers and responsibilities of the PLC are restricted to civil matters and internal security in Area A of the West Bank and Gaza, while in Area B they are restricted to civil affairs with security matters being under the control of the Israel Defense Forces.

Following the Hamas–Fatah split in 2007, the PLC ceased to function, with the President issuing laws by decree.

Oslo II provides that residents of the Palestinian territories may vote or be elected.

The powers and responsibilities of the PLC are limited by Article IX and XVII of the Oslo Accords to civil matters and internal security and public order and subject to review by Israel.

Under Article 66 of the Amended Basic Law of 2003, the approval of the PLC was required of each new government.

[11] The second Palestinian legislative election took place on 25 January 2006, which resulted in a decisive victory for Hamas.

[12] The European Union supplied election observers to "assess the whole election process, including the legal framework, the political environment and campaign, electoral preparations, voting and counting as well as the post-election period".

[13] The United States had spent $2.3 million in USAID to support the Palestinian elections, allegedly designed to bolster the image of President Abbas and his Fatah party.

Following the Hamas takeover of Gaza, President Abbas declared a state of emergency and, by presidential decree, besides other things, suspended the articles of the Amended Basic Law that required PLC approval of a new government.

Accordingly, the Palestinian Authority is not the government of the State of Palestine, but the self-government of the inhabitants of the territories.

While both PLC and PNC are virtually defunct, the functions of both legislatures are performed by the PLO Central Council.

As of April 2002[update], in the West Bank, the PLC has two main buildings, one in Ramallah in the Ministry of Education, housing the Assembly Chambers, and the main administrative office of the PLC in al-Bireh, adjacent to Ramallah.

In 2000, the construction of a Parliament Building to possibly house the PLC was started in Abu Dis, adjacent to East Jerusalem, where most of the Palestinian Authority's offices responsible for Jerusalem affairs are located, but the project was never finished.

[38][39][40] The attacks were condemned by the UN Goldstone Mission, which called it a "grave breach of extensive destruction of property, not justified by military necessity and carried out unlawfully and wantonly.