II 

108TH CONGRESS 

2D SESSION S. 2275 

To amend the Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) 

to provide for homeland security assistance for high-risk nonprofit organizations, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 1, 2004 

Ms. MIKULSKI (for herself, Mr. SPECTER, Mrs. MURRAY, Mrs. CLINTON, Ms. 

LANDRIEU, Mr. SCHUMER, Mr. LIEBERMAN, Mr. DASCHLE, and Mr. 

DAYTON) introduced the following bill; which was read twice and referred 

to the Committee on Governmental Affairs 

A BILL 

To amend the Homeland Security Act of 2002 (6 U.S.C. 

101 et seq.) to provide for homeland security assistance 

for high-risk nonprofit organizations, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘High Risk Nonprofit 

5 Security Enhancement Act of 2004’’. 
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1 SEC. 2. FINDING. 

2 Congress finds that there is a public interest in pro3 tecting high-risk nonprofit organizations from inter4 national terrorist attacks that would disrupt the vital serv5 ices such organizations provide to the people of the United 

6 States and threaten the lives and well-being of United 

7 States citizens who operate, utilize, and live or work in 

8 proximity to such organizations. 

9 SEC. 3. PURPOSES. 

10 The purposes of this Act are to— 

11 (1) establish within the Department of Home12 land Security a program to protect United States 

13 citizens at or near high-risk nonprofit organizations 

14 from international terrorist attacks through loan 

15 guarantees and Federal contracts for security en16 hancements and technical assistance; 

17 (2) establish a program within the Department 

18 of Homeland Security to provide grants to local gov19 ernments to assist with incremental costs associated 

20 with law enforcement in areas in which there are a 

21 high concentration of high-risk nonprofit organiza22 tions vulnerable to international terrorist attacks; 

23 and 

24 (3) establish an Office of Community Relations 

25 and Civic Affairs within the Department of Home26 land Security to focus on security needs of high-risk 
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1 nonprofit organizations with respect to international 

2 terrorist threats. 

3 SEC. 4. AUTHORITY TO ENTER INTO CONTRACTS AND 

4 ISSUE FEDERAL LOAN GUARANTEES. 

5 The Homeland Security Act of 2002 (6 U.S.C. 101 

6 et seq.) is amended by adding at the end the following: 

7 ‘‘TITLE XVIII—PROTECTION OF 

8 CITIZENS AT HIGH-RISK NON9 PROFIT ORGANIZATIONS 

10 ‘‘SEC. 1801. DEFINITIONS. 

11 ‘‘In this title: 

12 ‘‘(1) CONTRACT.—The term ‘contract’ means a 

13 contract between the Federal Government and a 

14 contractor selected from the list of certified contrac15 tors to perform security enhancements or provide 

16 technical assistance approved by the Secretary under 

17 this title. 

18 ‘‘(2) FAVORABLE REPAYMENT TERMS.—The 

19 term ‘favorable repayment terms’ means the repay20 ment terms of loans offered to nonprofit organiza21 tions under this title that— 

22 ‘‘(A) are determined by the Secretary, in 

23 consultation with the Secretary of the Treasury, 

24 to be favorable under current market condi25 tions; 
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1 ‘‘(B) have interest rates at least 1 full per2 centage point below the market rate; and 

3 ‘‘(C) provide for repayment over a term 

4 not less than 25 years. 

5 ‘‘(3) NONPROFIT ORGANIZATION.—The term 

6 ‘nonprofit organization’ means an organization 

7 that— 

8 ‘‘(A) is described under section 501(c)(3) 

9 of the Internal Revenue Code of 1986 and ex10 empt from taxation under section 501(a) of 

11 such Code; and 

12 ‘‘(B) is designated by the Secretary under 

13 section 1803(a). 

14 ‘‘(4) SECURITY ENHANCEMENTS.—The term 

15 ‘security enhancements’— 

16 ‘‘(A) means the purchase and installation 

17 of security equipment in real property (includ18 ing buildings and improvements), owned or 

19 leased by a nonprofit organization, specifically 

20 in response to the risk of attack at a nonprofit 

21 organization by an international terrorist orga22 nization; 

23 ‘‘(B) includes software security measures; 

24 and 
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1 ‘‘(C) does not include enhancements that 

2 would otherwise have been reasonably necessary 

3 due to nonterrorist threats. 

4 ‘‘(5) TECHNICAL ASSISTANCE.—The term ‘tech5 nical assistance’— 

6 ‘‘(A) means guidance, assessment, rec7 ommendations, and any other provision of infor8 mation or expertise which assists nonprofit or9 ganizations in— 

10 ‘‘(i) identifying security needs; 

11 ‘‘(ii) purchasing and installing secu12 rity enhancements; 

13 ‘‘(iii) training employees to use and 

14 maintain security enhancements; or 

15 ‘‘(iv) training employees to recognize 

16 and respond to international terrorist 

17 threats; and 

18 ‘‘(B) does not include technical assistance 

19 that would otherwise have been reasonably nec20 essary due to nonterrorist threats. 

21 ‘‘SEC. 1802. AUTHORITY TO ENTER INTO CONTRACTS AND 

22 ISSUE FEDERAL LOAN GUARANTEES. 

23 ‘‘(a) IN GENERAL.—The Secretary may— 
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1 ‘‘(1) enter into contracts with certified contrac2 tors for security enhancements and technical assist3 ance for nonprofit organizations; and 

4 ‘‘(2) issue Federal loan guarantees to financial 

5 institutions in connection with loans made by such 

6 institutions to nonprofit organizations for security 

7 enhancements and technical assistance. 

8 ‘‘(b) LOANS.—The Secretary may guarantee loans 

9 under this title— 

10 ‘‘(1) only to the extent provided for in advance 

11 by appropriations Acts; and 

12 ‘‘(2) only to the extent such loans have favor13 able repayment terms. 

14 ‘‘SEC. 1803. ELIGIBILITY CRITERIA. 

15 ‘‘(a) IN GENERAL.—The Secretary shall designate 

16 nonprofit organizations as high-risk nonprofit organiza17 tions eligible for contracts or loans under this title based 

18 on the vulnerability of the specific site of the nonprofit 

19 organization to international terrorist attacks. 

20 ‘‘(b) VULNERABILITY DETERMINATION.—In deter21 mining vulnerability to international terrorist attacks and 

22 eligibility for security enhancements or technical assist23 ance under this title, the Secretary shall consider— 

24 ‘‘(1) threats of international terrorist organiza25 tions (as designated by the State Department) 
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1 against any group of United States citizens who oper2 ate or are the principal beneficiaries or users of the 

3 nonprofit organization; 

4 ‘‘(2) prior attacks, within or outside the United 

5 States, by international terrorist organizations 

6 against the nonprofit organization or entities associ7 ated with or similarly situated as the nonprofit orga8 nization; 

9 ‘‘(3) the symbolic value of the site as a highly 

10 recognized United States cultural or historical insti11 tution that renders the site a possible target of 

12 international terrorism; 

13 ‘‘(4) the role of the nonprofit organization in 

14 responding to international terrorist attacks; and 

15 ‘‘(5) any recommendations of the applicable 

16 State Homeland Security Authority established 

17 under section 1806 or Federal, State, and local law 

18 enforcement authorities. 

19 ‘‘(c) DOCUMENTATION.—In order to be eligible for 

20 security enhancements, technical assistance or loan guar21 antees under this title, the nonprofit organization shall 

22 provide the Secretary with documentation that— 

23 ‘‘(1) the nonprofit organization hosted a gath24 ering of at least 100 or more persons at least once 
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1 each month at the nonprofit organization site during 

2 the preceding 12 months; or 

3 ‘‘(2) the nonprofit organization provides serv4 ices to at least 500 persons each year at the non5 profit organization site. 

6 ‘‘(d) TECHNICAL ASSISTANCE ORGANIZATIONS.—If 2 

7 or more nonprofit organizations establish another non8 profit organization to provide technical assistance, that es9 tablished organization shall be eligible to receive security 

10 enhancements and technical assistance under this title 

11 based upon the collective risk of the nonprofit organiza12 tions it serves. 

13 ‘‘SEC. 1804. USE OF LOAN GUARANTEES. 

14 ‘‘Funds borrowed from lending institutions, which 

15 are guaranteed by the Federal Government under this 

16 title, may be used for technical assistance and security en17 hancements. 

18 ‘‘SEC. 1805. NONPROFIT ORGANIZATION APPLICATIONS. 

19 ‘‘(a) IN GENERAL.—A nonprofit organization desir20 ing assistance under this title shall submit a separate ap21 plication for each specific site needing security enhance22 ments or technical assistance. 

23 ‘‘(b) CONTENT.—Each application shall include— 

24 ‘‘(1) a detailed request for security enhance25 ments and technical assistance, from a list of ap-
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1 proved enhancements and assistance issued by the 

2 Secretary under this title; 

3 ‘‘(2) a description of the intended uses of funds 

4 to be borrowed under Federal loan guarantees; and 

5 ‘‘(3) such other information as the Secretary 

6 shall require. 

7 ‘‘(c) JOINT APPLICATION.—Two or more nonprofit 

8 organizations located on contiguous sites may submit a 

9 joint application. 

10 ‘‘SEC. 1806. REVIEW BY STATE HOMELAND SECURITY AU11 THORITIES. 

12 ‘‘(a) ESTABLISHMENT OF STATE HOMELAND SECU13 RITY AUTHORITIES.—In accordance with regulations pre14 scribed by the Secretary, each State may establish a State 

15 Homeland Security Authority to carry out this title. 

16 ‘‘(b) APPLICATIONS.— 

17 ‘‘(1) SUBMISSION.—Applications shall be sub18 mitted to the applicable State Homeland Security 

19 Authority. 

20 ‘‘(2) EVALUATION.—After consultation with 

21 Federal, State, and local law enforcement authori22 ties, the State Homeland Security Authority shall 

23 evaluate all applications using the criteria under sec24 tion 1803 and transmit all qualifying applications to 
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1 the Secretary ranked by severity of risk of inter2 national terrorist attack. 

3 ‘‘(3) APPEAL.—An applicant may appeal the 

4 finding that an application is not a qualifying appli5 cation to the Secretary under procedures that the 

6 Secretary shall issue by regulation not later than 90 

7 days after the date of enactment of this title. 

8 ‘‘SEC. 1807. SECURITY ENHANCEMENT AND TECHNICAL AS9 SISTANCE CONTRACTS AND LOAN GUARAN10 TEES. 

11 ‘‘(a) IN GENERAL.—Upon receipt of the applications, 

12 the Secretary shall select applications for execution of se13 curity enhancement and technical assistance contracts, or 

14 issuance of loan guarantees, giving preference to the non15 profit organizations determined to be at greatest risk of 

16 international terrorist attack based on criteria under sec17 tion 1803. 

18 ‘‘(b) SECURITY ENHANCEMENTS AND TECHNICAL

19 ASSISTANCE; FOLLOWED BY LOAN GUARANTEES.—The 

20 Secretary shall execute security enhancement and tech21 nical assistance contracts for the highest priority appli22 cants until available funds are expended, after which loan 

23 guarantees shall be made available for additional appli24 cants determined to be at high risk, up to the authorized 

25 amount of loan guarantees. The Secretary may provide 
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1 with respect to a single application a combination of such 

2 contracts and loan guarantees. 

3 ‘‘(c) JOINT APPLICATIONS.—Special preference shall 

4 be given to joint applications submitted on behalf of mul5 tiple nonprofit organizations located in contiguous set6 tings. 

7 ‘‘(d) MAXIMIZING AVAILABLE FUNDS.—Subject to 

8 subsection (b), the Secretary shall execute security en9 hancement and technical assistance contracts in such 

10 amounts as to maximize the number of high-risk appli11 cants nationwide receiving assistance under this title. 

12 ‘‘(e) APPLICANT NOTIFICATION.—Upon selecting a 

13 nonprofit organization for assistance under this title, the 

14 Secretary shall notify the nonprofit organization that the 

15 Federal Government is prepared to enter into a contract 

16 with certified contractors to install specified security en17 hancements or provide specified technical assistance at the 

18 site of the nonprofit organization. 

19 ‘‘(f) CERTIFIED CONTRACTORS.— 

20 ‘‘(1) IN GENERAL.—Upon receiving a notifica21 tion under subsection (e), the nonprofit organization 

22 shall select a certified contractor to perform the 

23 specified security enhancements, from a list of cer24 tified contractors issued and maintained by the Sec25 retary under subsection (j). 
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1 ‘‘(2) LIST.—The list referred to in paragraph 

2 (1) shall be comprised of contractors selected on the 

3 basis of— 

4 ‘‘(A) technical expertise; 

5 ‘‘(B) performance record including quality 

6 and timeliness of work performed; 

7 ‘‘(C) adequacy of employee criminal back8 ground checks; and 

9 ‘‘(D) price competitiveness. 

10 ‘‘(3) OTHER CERTIFIED CONTRACTORS.—The 

11 Secretary shall include on the list of certified con12 tractors additional contractors selected by senior of13 ficials at State Homeland Security Authorities and 

14 the chief executives of county and other local juris15 dictions. Such additional certified contractors shall 

16 be selected on the basis of the criteria under para17 graph (2). 

18 ‘‘(g) ENSURING THE AVAILABILITY OF CONTRAC19 TORS.—If the list of certified contractors under this sec20 tion does not include any contractors who can begin work 

21 on the security enhancements or technical assistance with22 in 60 days after applicant notification, the nonprofit orga23 nization may submit a contractor not currently on the list 

24 to the Secretary for the Secretary’s review. If the Sec25 retary does not include the submitted contractor on the 
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1 list of certified contractors within 60 days after the sub2 mission and does not place an alternative contractor on 

3 the list within the same time period (who would be avail4 able to begin the specified work within that 60-day pe5 riod), the Secretary shall immediately place the submitted 

6 contractor on the list of certified contractors and such con7 tractor shall remain on such list until— 

8 ‘‘(1) the specified work is completed; or 

9 ‘‘(2) the Secretary can show cause why such 

10 contractor may not retain certification, with such de11 terminations subject to review by the Comptroller 

12 General of the United States. 

13 ‘‘(h) CONTRACTS.—Upon selecting a certified con14 tractor to provide security enhancements and technical as15 sistance approved by the Secretary under this title, the 

16 nonprofit organization shall notify the Secretary of such 

17 selection. The Secretary shall deliver a contract to such 

18 contractor within 10 business days after such notification. 

19 ‘‘(i) CONTRACTS FOR ADDITIONAL WORK OR UP20 GRADES.—A nonprofit organization, using its own funds, 

21 may enter into an additional contract with the certified 

22 contractor, for additional or upgraded security enhance23 ments or technical assistance. Such additional contracts 

24 shall be separate contracts between the nonprofit organi25 zation and the contractor. 
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1 ‘‘(j) EXPEDITING ASSISTANCE.—In order to expedite 

2 assistance to nonprofit organizations, the Secretary 

3 shall— 

4 ‘‘(1) compile a list of approved technical assist5 ance and security enhancement activities within 45 

6 days after the date of enactment of this title; 

7 ‘‘(2) publish in the Federal Register within 60 

8 days after such date of enactment a request for con9 tractors to submit applications to be placed on the 

10 list of certified contractors under this section; 

11 ‘‘(3) after consultation with the Secretary of 

12 the Treasury, publish in the Federal Register within 

13 60 days after such date of enactment, prescribe reg14 ulations setting forth the conditions under which 

15 loan guarantees shall be issued under this title, in16 cluding application procedures, expeditious review of 

17 applications, underwriting criteria, assignment of 

18 loan guarantees, modifications, commercial validity, 

19 defaults, and fees; and 

20 ‘‘(4) publish in the Federal Register within 120 

21 days after such date of enactment (and every 30 

22 days thereafter) a list of certified contractors, in23 cluding those selected by State Homeland Security 

24 Authorities, county, and local officials, with coverage 
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1 of all 50 States, the District of Columbia, and the 

2 territories. 

3 ‘‘SEC. 1808. LOCAL LAW ENFORCEMENT ASSISTANCE 

4 GRANTS. 

5 ‘‘(a) IN GENERAL.—The Secretary may provide 

6 grants to units of local government to offset incremental 

7 costs associated with law enforcement in areas where there 

8 is a high concentration of nonprofit organizations. 

9 ‘‘(b) USE.—Grant funds received under this section 

10 may be used only for personnel costs or for equipment 

11 needs specifically related to such incremental costs. 

12 ‘‘(c) MAXIMIZATION OF IMPACT.—The Secretary 

13 shall award grants in such amounts as to maximize the 

14 impact of available funds in protecting nonprofit organiza15 tions nationwide from international terrorist attacks. 

16 ‘‘SEC. 1809. OFFICE OF COMMUNITY RELATIONS AND CIVIC 

17 AFFAIRS. 

18 ‘‘(a) IN GENERAL.—There is established within the 

19 Department, the Office of Community Relations and Civic 

20 Affairs to administer grant programs for nonprofit organi21 zations and local law enforcement assistance. 

22 ‘‘(b) ADDITIONAL RESPONSIBILITIES.—The Office of 

23 Community Relations and Civic Affairs shall— 

24 ‘‘(1) coordinate community relations efforts of 

25 the Department; 
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1 ‘‘(2) serve as the official liaison of the Secretary 

2 to the nonprofit, human and social services, and 

3 faith-based communities; and 

4 ‘‘(3) assist in coordinating the needs of those 

5 communities with the Citizen Corps program. 

6 ‘‘SEC. 1810. AUTHORIZATION OF APPROPRIATIONS AND 

7 LOAN GUARANTEES. 

8 ‘‘(a) NONPROFIT ORGANIZATIONS PROGRAM.—There 

9 are authorized to be appropriated to the Department to 

10 carry out the nonprofit organization program under this 

11 title, $100,000,000 for fiscal year 2005 and such sums 

12 as may be necessary for fiscal years 2006 and 2007. 

13 ‘‘(b) LOCAL LAW ENFORCEMENT ASSISTANCE

14 GRANTS.—There are authorized to be appropriated to the 

15 Department for local law enforcement assistance grants 

16 under section 1808, $50,000,000 for fiscal year 2005 and 

17 such sums as may be necessary for fiscal years 2006 and 

18 2007. 

19 ‘‘(c) OFFICE OF COMMUNITY RELATIONS AND CIVIC

20 AFFAIRS.—There are authorized to be appropriated to the 

21 Department for the Office of Community Relations and 

22 Civic Affairs under section 1809, $5,000,000 for fiscal 

23 year 2005 and such sums as may be necessary for fiscal 

24 years 2006 and 2007. 

25 ‘‘(d) LOAN GUARANTEES.— 
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1 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

2 There are authorized to be appropriated in each of 

3 fiscal years 2005, 2006, and 2007, such amounts as 

4 may be required under the Federal Credit Act with 

5 respect to Federal loan guarantees authorized by 

6 this title, which shall remain available until ex7 pended. 

8 ‘‘(2) LIMITATION.—The aggregate value of all 

9 loans for which loan guarantees are issued under 

10 this title by the Secretary may not exceed 

11 $250,000,000 in each of fiscal years 2005, 2006, 

12 and 2007.’’. 

13 SEC. 5. TECHNICAL AND CONFORMING AMENDMENT. 

14 The table of contents under section 1(b) of the Home15 land Security Act of 2002 (6 U.S.C. 101(b)) is amended 

16 by adding at the end the following: 

‘‘TITLE XVIII—PROTECTION OF CITIZENS AT HIGH-RISK 

NONPROFIT ORGANIZATIONS 

‘‘Sec. 1801. Definitions. 

‘‘Sec. 1802. Authority to enter into contracts and issue Federal loan guarantees. 

‘‘Sec. 1803. Eligibility criteria. 

‘‘Sec. 1804. Use of loan guarantees. 

‘‘Sec. 1805. Nonprofit organization applications. 

‘‘Sec. 1806. Review by State Homeland Security Authorities. 

‘‘Sec. 1807. Security enhancement and technical assistance contracts and loan 

guarantees. 

‘‘Sec. 1808. Local law enforcement assistance grants. 

‘‘Sec. 1809. Office of Community Relations and Civic Affairs. 

‘‘Sec. 1810. Authorization of appropriations and loan guarantees.’’. 

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