I 

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108TH CONGRESS 

2D SESSION H. R. 4108

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 HOUSE OF REPRESENTATIVES 

MAY 1, 2004

Mr. NETHERCUTT (for himself, Mr. NADLER, Mr. SHAYS, Mr. ENGEL, Mr. 

BACHUS, Mr. BERMAN, Mr. CLAY, Mr. DAVIS of Illinois, Mrs. DAVIS of 

California, Mr. GRIJALVA, Mr. HOLDEN, Mr. HOYER, Mrs. LOWEY, Mr. 

PENCE, Ms. SCHAKOWSKY, Mr. SHERMAN, Mr. WEINER, Mr. WEXLER, 

Mr. PASCRELL, Mr. RUPPERSBERGER, Mr. HOEFFEL, and Ms. KAPTUR) 

introduced the following bill; which was referred to the Select Committee 

on Homeland Security, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

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,
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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 
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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—
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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) NONPROFIT ORGANIZATION.—The term 

10 ‘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) 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 
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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) TECHNICAL ASSISTANCE.—The term ‘tech9 nical 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. 
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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 ‘‘SEC. 1803. ELIGIBILITY CRITERIA. 

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

19 nonprofit organizations as high-risk nonprofit organiza20 tions eligible for contracts or loans under this title based 

21 on the vulnerability of the specific site of the nonprofit 

22 organization to international terrorist attacks. 

23 ‘‘(b) VULNERABILITY DETERMINATION.—In deter24 mining vulnerability to international terrorist attacks and 

25 eligibility for security enhancements or technical assist26 ance under this title, the Secretary shall consider—
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1 ‘‘(1) threats of international terrorist organiza2 tions (as designated by the State Department) 

3 against any group of United States citizens who op4 erate or are the principal beneficiaries or users of 

5 the nonprofit organization; 

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

7 States, by international terrorist organizations 

8 against the nonprofit organization or entities associ9 ated with or similarly situated as the nonprofit orga10 nization; 

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

12 recognized United States cultural or historical insti13 tution that renders the site a possible target of 

14 international terrorism; 

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

16 responding to international terrorist attacks; and 

17 ‘‘(5) any recommendations of the applicable 

18 State Homeland Security Authority established 

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

20 enforcement authorities. 

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

22 security enhancements, technical assistance or loan guar23 antees under this title, the nonprofit organization shall 

24 provide the Secretary with documentation that—
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1 ‘‘(1) the nonprofit organization hosted a gath2 ering of at least 100 or more persons at least once 

3 each month at the nonprofit organization site during 

4 the preceding 12 months; or 

5 ‘‘(2) the nonprofit organization provides serv6 ices to at least 500 persons each year at the non7 profit organization site. 

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

9 or more nonprofit organizations establish another non10 profit organization to provide technical assistance, that es11 tablished organization shall be eligible to receive security 

12 enhancements and technical assistance under this title 

13 based upon the collective risk of the nonprofit organiza14 tions it serves. 

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

16 ‘‘Funds borrowed from lending institutions, which 

17 are guaranteed by the Federal Government under this 

18 title, may be used for technical assistance and security en19 hancements. 

20 ‘‘SEC. 1805. NONPROFIT ORGANIZATION APPLICATIONS. 

21 ‘‘(a) IN GENERAL.—A nonprofit organization desir22 ing assistance under this title shall submit a separate ap23 plication for each specific site needing security enhance24 ments or technical assistance. 

25 ‘‘(b) CONTENT.—Each application shall include—
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1 ‘‘(1) a detailed request for security enhance2 ments and technical assistance, from a list of ap3 proved enhancements and assistance issued by the 

4 Secretary under this title; 

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

6 to be borrowed under Federal loan guarantees; and 

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

8 shall require. 

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

10 organizations located on contiguous sites may submit a 

11 joint application. 

12 ‘‘SEC. 1806. REVIEW BY STATE HOMELAND SECURITY AU13 THORITIES. 

14 ‘‘(a) ESTABLISHMENT OF STATE HOMELAND SECU15 RITY AUTHORITIES.—In accordance with regulations pre16 scribed by the Secretary, each State may establish a State 

17 Homeland Security Authority to carry out this title. 

18 ‘‘(b) APPLICATIONS.—

19 ‘‘(1) SUBMISSION.—Applications shall be sub20 mitted to the applicable State Homeland Security 

21 Authority. 

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

23 Federal, State, and local law enforcement authori24 ties, the State Homeland Security Authority shall 

25 evaluate all applications using the criteria under sec-
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1 tion 1803 and transmit all qualifying applications to 

2 the Secretary ranked by severity of risk of inter3 national terrorist attack. 

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

5 finding that an application is not a qualifying appli6 cation to the Secretary under procedures that the 

7 Secretary shall issue by regulation not later than 90 

8 days after the date of enactment of this title. 

9 ‘‘SEC. 1807. SECURITY ENHANCEMENT AND TECHNICAL AS10 SISTANCE CONTRACTS AND LOAN GUARAN11 TEES. 

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

13 the Secretary shall select applications for execution of se14 curity enhancement and technical assistance contracts, or 

15 issuance of loan guarantees, giving preference to the non16 profit organizations determined to be at greatest risk of 

17 international terrorist attack based on criteria under sec18 tion 1803. 

19 ‘‘(b) SECURITY ENHANCEMENTS AND TECHNICAL

20 ASSISTANCE; FOLLOWED BY LOAN GUARANTEES.—The 

21 Secretary shall execute security enhancement and tech22 nical assistance contracts for the highest priority appli23 cants until available funds are expended, after which loan 

24 guarantees shall be made available for additional appli25 cants determined to be at high risk, up to the authorized 
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1 amount of loan guarantees. The Secretary may provide 

2 with respect to a single application a combination of such 

3 contracts and loan guarantees. 

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

5 be given to joint applications submitted on behalf of mul6 tiple nonprofit organizations located in contiguous set7 tings. 

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

9 subsection (b), the Secretary shall execute security en10 hancement and technical assistance contracts in such 

11 amounts as to maximize the number of high-risk appli12 cants nationwide receiving assistance under this title. 

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

14 nonprofit organization for assistance under this title, the 

15 Secretary shall notify the nonprofit organization that the 

16 Federal Government is prepared to enter into a contract 

17 with certified contractors to install specified security en18 hancements or provide specified technical assistance at the 

19 site of the nonprofit organization. 

20 ‘‘(f) CERTIFIED CONTRACTORS.—

21 ‘‘(1) IN GENERAL.—Upon receiving a notifica22 tion under subsection (e), the nonprofit organization 

23 shall select a certified contractor to perform the 

24 specified security enhancements, from a list of cer-
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1 tified contractors issued and maintained by the Sec2 retary under subsection (j). 

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

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

5 basis of—

6 ‘‘(A) technical expertise; 

7 ‘‘(B) performance record including quality 

8 and timeliness of work performed; 

9 ‘‘(C) adequacy of employee criminal back10 ground checks; and 

11 ‘‘(D) price competitiveness. 

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

13 Secretary shall include on the list of certified con14 tractors additional contractors selected by senior of15 ficials at State Homeland Security Authorities and 

16 the chief executives of county and other local juris17 dictions. Such additional certified contractors shall 

18 be selected on the basis of the criteria under para19 graph (2). 

20 ‘‘(g) ENSURING THE AVAILABILITY OF CONTRAC21 TORS.—If the list of certified contractors under this sec22 tion does not include any contractors who can begin work 

23 on the security enhancements or technical assistance with24 in 60 days after applicant notification, the nonprofit orga25 nization may submit a contractor not currently on the list 
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1 to the Secretary for the Secretary’s review. If the Sec2 retary does not include the submitted contractor on the 

3 list of certified contractors within 60 days after the sub4 mission and does not place an alternative contractor on 

5 the list within the same time period (who would be avail6 able to begin the specified work within that 60-day pe7 riod), the Secretary shall immediately place the submitted 

8 contractor on the list of certified contractors and such con9 tractor shall remain on such list until—

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

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

12 contractor may not retain certification, with such de13 terminations subject to review by the Comptroller 

14 General of the United States. 

15 ‘‘(h) CONTRACTS.—Upon selecting a certified con16 tractor to provide security enhancements and technical as17 sistance approved by the Secretary under this title, the 

18 nonprofit organization shall notify the Secretary of such 

19 selection. The Secretary shall deliver a contract to such 

20 contractor within 10 business days after such notification. 

21 ‘‘(i) CONTRACTS FOR ADDITIONAL WORK OR UP22 GRADES.—A nonprofit organization, using its own funds, 

23 may enter into an additional contract with the certified 

24 contractor, for additional or upgraded security enhance25 ments or technical assistance. Such additional contracts 
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1 shall be separate contracts between the nonprofit organi2 zation and the contractor. 

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

4 assistance to nonprofit organizations, the Secretary 

5 shall— 

6 ‘‘(1) compile a list of approved technical assist7 ance and security enhancement activities within 45 

8 days after the date of enactment of this title; 

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

10 days after such date of enactment a request for con11 tractors to submit applications to be placed on the 

12 list of certified contractors under this section; 

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

14 the Treasury, publish in the Federal Register within 

15 60 days after such date of enactment, prescribe reg16 ulations setting forth the conditions under which 

17 loan guarantees shall be issued under this title, in18 cluding application procedures, expeditious review of 

19 applications, underwriting criteria, assignment of 

20 loan guarantees, modifications, commercial validity, 

21 defaults, and fees; and 

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

23 days after such date of enactment (and every 30 

24 days thereafter) a list of certified contractors, in25 cluding those selected by State Homeland Security 
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1 Authorities, county, and local officials, with coverage 

2 of all 50 States, the District of Columbia, and the 

3 territories. 

4 ‘‘SEC. 1808. LOCAL LAW ENFORCEMENT ASSISTANCE 

5 GRANTS. 

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

7 grants to units of local government to offset incremental 

8 costs associated with law enforcement in areas where there 

9 is a high concentration of nonprofit organizations. 

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

11 may be used only for personnel costs or for equipment 

12 needs specifically related to such incremental costs. 

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

14 shall award grants in such amounts as to maximize the 

15 impact of available funds in protecting nonprofit organiza16 tions nationwide from international terrorist attacks. 

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

18 AFFAIRS. 

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

20 Department, the Office of Community Relations and Civic 

21 Affairs to administer grant programs for nonprofit organi22 zations and local law enforcement assistance. 

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

24 Community Relations and Civic Affairs shall—
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1 ‘‘(1) coordinate community relations efforts of 

2 the Department; 

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

4 to the nonprofit, human and social services, and 

5 faith-based communities; and 

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

7 communities with the Citizen Corps program. 

8 ‘‘SEC. 1810. AUTHORIZATION OF APPROPRIATIONS AND 

9 LOAN GUARANTEES. 

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

11 are authorized to be appropriated to the Department to 

12 carry out the nonprofit organization program under this 

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

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

15 ‘‘(b) LOCAL LAW ENFORCEMENT ASSISTANCE

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

17 Department for local law enforcement assistance grants 

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

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

20 2007. 

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

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

23 Department for the Office of Community Relations and 

24 Civic Affairs under section 1809, $5,000,000 for fiscal 
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1 year 2005 and such sums as may be necessary for fiscal 

2 years 2006 and 2007. 

3 ‘‘(d) LOAN GUARANTEES.—

4 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.—

5 There are authorized to be appropriated in each of 

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

7 may be required under the Federal Credit Act with 

8 respect to Federal loan guarantees authorized by 

9 this title, which shall remain available until ex10 pended. 

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

12 loans for which loan guarantees are issued under 

13 this title by the Secretary may not exceed 

14 $250,000,000 in each of fiscal years 2005, 2006, 

15 and 2007.’’. 

16 SEC. 5. TECHNICAL AND CONFORMING AMENDMENT. 

17 The table of contents under section 1(b) of the Home18 land Security Act of 2002 (6 U.S.C. 101(b)) is amended 

19 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. 
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‘‘Sec. 1809. Office of Community Relations and Civic Affairs. 

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

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