II 

Calendar No. 797

108TH CONGRESS 

2D SESSION S. 2275

[Report No. 108–408] 

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, Mr. DAYTON, Mr. REID, Ms. COLLINS, Mr. SMITH, Mrs. BOXER, Mr. DODD, Mr. 

BAUCUS, and Mr. COLEMAN) introduced the following bill; which was 

read twice and referred to the Committee on Governmental Affairs 

NOVEMBER 10, 2004

Reported under authority of the order of the Senate of October 11, 2004, by 

Ms. COLLINS, with amendments 

[Omit the part struck through and insert the part printed in italic] 

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,
2

•S 2275 RS 

1 SECTION 1. SHORT TITLE. 

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

3 Security Enhancement Act of 2004’’. 

4 SEC. 2. FINDING. 

5 Congress finds that there is a public interest in pro6 tecting high-risk nonprofit organizations from inter7 national terrorist attacks that would disrupt the vital serv8 ices such organizations provide to the people of the United 

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

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

11 proximity to such organizations. 

12 SEC. 3. PURPOSES. 

13 The purposes of this Act are to— 

14 (1) establish within the Department of Home15 land Security a program to protect United States 

16 citizens at or near high-risk nonprofit organizations 

17 from international terrorist attacks through loan 

18 guarantees and Federal contracts for security en19 hancements and technical assistance; 

20 (2) establish a program within the Department 

21 of Homeland Security to provide grants to local gov22 ernments to assist with incremental costs associated 

23 with law enforcement in areas in which there are a 

24 high concentration of high-risk nonprofit organiza25 tions vulnerable to international terrorist attacks; 

26 and 
3

•S 2275 RS 

1 (3) establish an Office of Community Relations 

2 and Civic Affairs within the Department of Home3 land Security to focus on security needs of high-risk 

4 nonprofit organizations with respect to international 

5 terrorist threats. 

6 SEC. 4. AUTHORITY TO ENTER INTO CONTRACTS AND 

7 ISSUE FEDERAL LOAN GUARANTEES. 

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

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

10 ‘‘TITLE XVIII—PROTECTION OF 

11 CITIZENS AT HIGH-RISK NON12 PROFIT ORGANIZATIONS 

13 ‘‘SEC. 1801. DEFINITIONS. 

14 ‘‘In this title: 

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

16 contract between the Federal Government and a 

17 contractor selected from the list of certified contrac18 tors to perform security enhancements or provide 

19 technical assistance approved by the Secretary under 

20 this title.

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

22 term ‘favorable repayment terms’ means the repay23 ment terms of loans offered to nonprofit organiza24 tions under this title that— 
4

•S 2275 RS 

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

2 consultation with the Secretary of the Treasury, 

3 to be favorable under current market condi4 tions; 

5 ‘‘(B) have interest rates at least 1 full per6 centage point below the market rate; and 

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

8 not less than 25 years.

9 ‘‘(3) (2) NONPROFIT ORGANIZATION.—The 

10 term ‘nonprofit organization’ means an organization 

11 that— 

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

13 of the Internal Revenue Code of 1986 and ex14 empt from taxation under section 501(a) of 

15 such Code; and 

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

17 section 1803(a). 

18 ‘‘(4) (3) SECURITY ENHANCEMENTS.—The term 

19 ‘security enhancements’— 

20 ‘‘(A) means the purchase and installation 

21 of security equipment in real property (includ22 ing buildings and improvements), owned or 

23 leased by a nonprofit organization, specifically 

24 in response to the risk of attack at a nonprofit 
5

•S 2275 RS 

1 organization by an international terrorist orga2 nization; 

3 ‘‘(B) includes software security measures; 

4 and 

5 ‘‘(C) does not include enhancements that 

6 would otherwise have been reasonably necessary 

7 due to nonterrorist threats. 

8 ‘‘(5) (4) TECHNICAL ASSISTANCE.—The term 

9 ‘technical assistance’— 

10 ‘‘(A) means guidance, assessment, rec11 ommendations, and any other provision of infor12 mation or expertise which assists nonprofit or13 ganizations in— 

14 ‘‘(i) identifying security needs; 

15 ‘‘(ii) purchasing and installing secu16 rity enhancements; 

17 ‘‘(iii) training employees to use and 

18 maintain security enhancements; or 

19 ‘‘(iv) training employees to recognize 

20 and respond to international terrorist 

21 threats; and 

22 ‘‘(B) does not include technical assistance 

23 that would otherwise have been reasonably nec24 essary due to nonterrorist threats.
6

•S 2275 RS 

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

2 ISSUE FEDERAL LOAN GUARANTEES. 

3 ‘‘(a) IN GENERAL.—The Secretary may— 

4 ‘‘(1) enter into contracts with certified contrac5 tors for security enhancements and technical assist6 ance for nonprofit organizations; and 

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

8 institutions in connection with loans made by such 

9 institutions to nonprofit organizations for security 

10 enhancements and technical assistance. 

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

12 under this title— 

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

14 by appropriations Acts; and

15 ‘‘(2) only to the extent such loans have favor16 able repayment terms.

17 ‘‘(2) under such terms and conditions as the Sec18 retary considers to be appropriate, consistent with 

19 section 503 of the Federal Credit Reform Act of 1990 

20 (2 U.S.C. 661b); and 

21 ‘‘(3) only to the extent that the terms and condi22 tions include a requirement that the decision to pro23 vide a loan guarantee to a financial institution and 

24 the amount of the guarantee does not in any way de25 pend on the purpose, function, or identity of the orga-
7

•S 2275 RS 

1 nization to which the financial institution has made, 

2 or intends to make, a loan.

3 ‘‘SEC. 1803. ELIGIBILITY CRITERIA. 

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

5 nonprofit organizations as high-risk nonprofit organiza6 tions eligible for contracts or loans under this title based 

7 on the vulnerability of the specific site of the nonprofit 

8 organization to international terrorist attacks. 

9 ‘‘(b) VULNERABILITY DETERMINATION.—In deter10 mining vulnerability to international terrorist attacks and 

11 eligibility for security enhancements or technical assist12 ance under this title, the Secretary shall consider— 

13 ‘‘(1) threats of international terrorist organiza14 tions (as designated by the State Department)

15 against any group of United States citizens who op16 erate or are the principal beneficiaries or users of 

17 the nonprofit organization; 

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

19 States, by international terrorist organizations 

20 against the nonprofit organization or entities associ21 ated with or similarly situated as the nonprofit orga22 nization; 

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

24 recognized United States cultural or historical insti-
8

•S 2275 RS 

1 tution that renders the site a possible target of 

2 international terrorism; 

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

4 responding to international terrorist attacks; and 

5 ‘‘(5) any recommendations of the applicable 

6 State Homeland Security Authority established des7 ignated State agency under section 1806 or Federal, 

8 State, and local law enforcement authorities.; and

9 ‘‘(6) the likelihood of physical harm to persons at 

10 the site or in the area surrounding the site.

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

12 security enhancements, technical assistance or loan guar13 antees under this title, the nonprofit organization shall 

14 provide the Secretary with documentation that— 

15 ‘‘(1) the nonprofit organization hosted a gath16 ering of at least 100 or more persons at least once 

17 each month at the nonprofit organization site during 

18 the preceding 12 months; or 

19 ‘‘(2) the nonprofit organization provides serv20 ices to at least 500 persons each year at the non21 profit organization site.

22 ‘‘(d) (c) TECHNICAL ASSISTANCE ORGANIZATIONS.—

23 If 2 or more nonprofit organizations establish another 

24 nonprofit organization to provide technical assistance, that 

25 established organization shall be eligible to receive security 
9

•S 2275 RS 

1 enhancements and technical assistance under this title 

2 based upon the collective risk of the nonprofit organiza3 tions it serves. 

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

5 ‘‘Funds borrowed from lending institutions, which 

6 are guaranteed by the Federal Government under this 

7 title, may be used for technical assistance and security en8 hancements. 

9 ‘‘SEC. 1805. NONPROFIT ORGANIZATION APPLICATIONS. 

10 ‘‘(a) IN GENERAL.—A nonprofit organization desir11 ing assistance under this title shall submit a separate ap12 plication for each specific site needing security enhance13 ments or technical assistance. 

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

15 ‘‘(1) a detailed request for security enhance16 ments and technical assistance, from a list of ap17 proved enhancements and assistance issued by the 

18 Secretary under this title; 

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

20 to be borrowed under Federal loan guarantees; and 

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

22 shall require. 

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

24 organizations located on contiguous sites may submit a 

25 joint application. 
10

•S 2275 RS 

1 ‘‘SEC. 1806. REVIEW BY STATE HOMELAND SECURITY AU2 THORITIES DESIGNATED STATE AGENCIES.

3 ‘‘(a) ESTABLISHMENT OF STATE HOMELAND SECU4 RITY AUTHORITIES DESIGNATED STATE AGENCIES.—In 

5 accordance with regulations prescribed by the Secretary, 

6 each State may establish a State Homeland Security Au7 thority shall designate a State agency to carry out this 

8 title. 

9 ‘‘(b) APPLICATIONS.— 

10 ‘‘(1) SUBMISSION.—Applications shall be sub11 mitted to the applicable State Homeland Security 

12 Authority designated State agency. 

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

14 Federal, State, and local law enforcement authori15 ties, the State Homeland Security Authority des16 ignated State agency shall evaluate all applications 

17 using the criteria under section 1803 and transmit 

18 all qualifying applications to the Secretary ranked by 

19 severity of risk of international terrorist attack. 

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

21 finding that an application is not a qualifying appli22 cation to the Secretary under procedures that the 

23 Secretary shall issue by regulation not later than 90 

24 days after the date of enactment of this title.
11

•S 2275 RS 

1 ‘‘SEC. 1807. SECURITY ENHANCEMENT AND TECHNICAL AS2 SISTANCE CONTRACTS AND LOAN GUARAN3 TEES. 

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

5 the Secretary shall select applications for execution of se6 curity enhancement and technical assistance contracts, or 

7 issuance of loan guarantees, giving preference to the non8 profit organizations determined to be at greatest risk of 

9 international terrorist attack based on criteria under sec10 tion 1803. 

11 ‘‘(b) SECURITY ENHANCEMENTS AND TECHNICAL

12 ASSISTANCE; FOLLOWED BY LOAN GUARANTEES.—The 

13 Secretary shall execute security enhancement and tech14 nical assistance contracts for the highest priority appli15 cants until available funds are expended, after which loan 

16 guarantees shall be made available for additional appli17 cants determined to be at high risk, up to the authorized 

18 amount of loan guarantees. The Secretary may provide 

19 with respect to a single application a combination of such 

20 contracts and loan guarantees. 

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

22 be given to joint applications submitted on behalf of mul23 tiple nonprofit organizations located in contiguous set24 tings. 

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

26 subsection (b), the Secretary shall execute security en-
12

•S 2275 RS 

1 hancement and technical assistance contracts in such 

2 amounts as to maximize the number of high-risk appli3 cants nationwide receiving assistance under this title. 

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

5 nonprofit organization for assistance under this title, the 

6 Secretary shall notify the nonprofit organization that the 

7 Federal Government is prepared to enter into a contract 

8 with certified contractors to install specified security en9 hancements or provide specified technical assistance at the 

10 site of the nonprofit organization. 

11 ‘‘(f) CERTIFIED CONTRACTORS.— 

12 ‘‘(1) IN GENERAL.—Upon receiving a notifica13 tion under subsection (e), the nonprofit organization 

14 shall select a certified contractor to perform the 

15 specified security enhancements, from a list of cer16 tified contractors issued and maintained by the Sec17 retary under subsection (j). 

18 ‘‘(2) LIST.—The list referred to in paragraph 

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

20 basis of— 

21 ‘‘(A) technical expertise; 

22 ‘‘(B) performance record including quality 

23 and timeliness of work performed; 

24 ‘‘(C) adequacy of employee criminal back25 ground checks; and 
13

•S 2275 RS 

1 ‘‘(D) price competitiveness. 

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

3 Secretary shall include on the list of certified con4 tractors additional contractors selected by senior of5 ficials at State Homeland Security Authorities des6 ignated State agencies and the chief executives of 

7 county and other local jurisdictions. Such additional 

8 certified contractors shall be selected on the basis of 

9 the criteria under paragraph (2). 

10 ‘‘(g) ENSURING THE AVAILABILITY OF CONTRAC11 TORS.—If the list of certified contractors under this sec12 tion does not include any contractors who can begin work 

13 on the security enhancements or technical assistance with14 in 60 days after applicant notification, the nonprofit orga15 nization may submit a contractor not currently on the list 

16 to the Secretary for the Secretary’s review. If the Sec17 retary does not include the submitted contractor on the

18 list of certified contractors within 60 days after the sub19 mission and does not place an alternative contractor on 

20 the list within the same time period (who would be avail21 able to begin the specified work within that 60-day pe22 riod), the Secretary shall immediately place the submitted 

23 contractor on the list of certified contractors and such con24 tractor shall remain on such list until— 

25 ‘‘(1) the specified work is completed; or 
14

•S 2275 RS 

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

2 contractor may not retain certification, with such de3 terminations subject to review by the Comptroller 

4 General of the United States. 

5 ‘‘(h) CONTRACTS.—Upon selecting a certified con6 tractor to provide security enhancements and technical as7 sistance approved by the Secretary under this title, the 

8 nonprofit organization shall notify the Secretary of such 

9 selection. The Secretary shall deliver a contract to such 

10 contractor within 10 business days after such notification. 

11 ‘‘(i) CONTRACTS FOR ADDITIONAL WORK OR UP12 GRADES.—A nonprofit organization, using its own funds, 

13 may enter into an additional contract with the certified 

14 contractor, for additional or upgraded security enhance15 ments or technical assistance. Such additional contracts 

16 shall be separate contracts between the nonprofit organi17 zation and the contractor. 

18 ‘‘(j) EXPEDITING ASSISTANCE.—In order to expedite 

19 assistance to nonprofit organizations, the Secretary 

20 shall— 

21 ‘‘(1) compile a list of approved technical assist22 ance and security enhancement activities within 45 

23 days after the date of enactment of this title; 

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

25 days after such date of enactment a request for con-
15

•S 2275 RS 

1 tractors to submit applications to be placed on the 

2 list of certified contractors under this section; 

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

4 the Treasury, publish in the Federal Register within 

5 60 days after such date of enactment, prescribe reg6 ulations setting forth the conditions under which 

7 loan guarantees shall be issued under this title, in8 cluding application procedures, expeditious review of 

9 applications, underwriting criteria, assignment of 

10 loan guarantees, modifications, commercial validity, 

11 defaults, and fees; and 

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

13 days after such date of enactment (and every 30 

14 days thereafter) a list of certified contractors, in15 cluding those selected by State Homeland Security 

16 Authorities designated State agencies, county, and 

17 local officials, with coverage of all 50 States, the 

18 District of Columbia, and the territories. 

19 ‘‘SEC. 1808. LOCAL LAW ENFORCEMENT ASSISTANCE 

20 GRANTS. 

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

22 grants to units of local government to offset incremental 

23 costs associated with law enforcement in areas where there 

24 is a high concentration of nonprofit organizations.
16

•S 2275 RS 

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

2 may be used only for personnel costs or for equipment 

3 needs specifically related to such incremental costs. 

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

5 shall award grants in such amounts as to maximize the 

6 impact of available funds in protecting nonprofit organiza7 tions nationwide from international terrorist attacks. 

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

9 AFFAIRS. 

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

11 Department, the Office of Community Relations and Civic 

12 Affairs to administer grant programs for nonprofit organi13 zations and local law enforcement assistance. 

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

15 Community Relations and Civic Affairs shall— 

16 ‘‘(1) coordinate community relations efforts of 

17 the Department; 

18 ‘‘(2) serve as the official liaison of the Secretary 

19 to the nonprofit, human and social services, and 

20 faith-based communities; and 

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

22 communities with the Citizen Corps program. 
17

•S 2275 RS 

1 ‘‘SEC. 1810. AUTHORIZATION OF APPROPRIATIONS AND 

2 LOAN GUARANTEES. 

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

4 are authorized to be appropriated to the Department to 

5 carry out the nonprofit organization program under this 

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

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

8 ‘‘(b) LOCAL LAW ENFORCEMENT ASSISTANCE

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

10 Department for local law enforcement assistance grants 

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

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

13 2007. 

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

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

16 Department for the Office of Community Relations and 

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

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

19 years 2006 and 2007. 

20 ‘‘(d) LOAN GUARANTEES.— 

21 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—

22 There are authorized to be appropriated in each of 

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

24 may be required under the Federal Credit Act with 

25 respect to Federal loan guarantees authorized by 
18

•S 2275 RS 

1 this title, which shall remain available until ex2 pended. 

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

4 loans for which loan guarantees are issued under 

5 this title by the Secretary may not exceed 

6 $250,000,000 in each of fiscal years 2005, 2006, 

7 and 2007.’’. 

8 SEC. 5. TECHNICAL AND CONFORMING AMENDMENT. 

9 The table of contents under section 1(b) of the Home10 land Security Act of 2002 (6 U.S.C. 101(b)) is amended 

11 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. 1806. Review by designated State agencies.

‘‘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.’’.

Calendar No. 797

108TH CONGRESS 

2D SESSION S. 2275

[Report No. 108–408] 

A BILL

To amend the Homeland Security Act of 2002 (6 

tions, and for other purposes. rity assistance for high-risk nonprofit organizaU.S.C. 101 et seq.) to provide for homeland secuNOVEMBER 10, 2004

Reported with amendments