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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 organi-
zations, 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 Judici-
ary, 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 pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE. 
This Act may be cited as the‘‘High Risk Nonprofit 
Security Enhancement Act of 2004’’. 
SEC. 2. FINDING. 
Congress finds that there is a public interest in pro-
tecting high-risk nonprofit organizations from inter-
national terrorist attacks that would disrupt the vital serv-
ices such organizations provide to the people of the United 
States and threaten the lives and well-being of United 
States citizens who operate, utilize, and live or work in 
proximity to such organizations. 
SEC. 3. PURPOSES. 
The purposes of this Act are to—
(1) establish within the Department of Home-
land Security a program to protect United States 
citizens at or near high-risk nonprofit organizations 
from international terrorist attacks through loan 
guarantees and Federal contracts for security en-
hancements and technical assistance; 
(2) establish a program within the Department 
of Homeland Security to provide grants to local gov-
ernments to assist with incremental costs associated 
with law enforcement in areas in which there are a 
high concentration of high-risk nonprofit organiza-
tions vulnerable to international terrorist attacks; 
and
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(3) establish an Office of Community Relations 
and Civic Affairs within the Department of Home-
land Security to focus on security needs of high-risk 
nonprofit organizations with respect to international 
terrorist threats. 
SEC. 4. AUTHORITY TO ENTER INTO CONTRACTS AND 
ISSUE FEDERAL LOAN GUARANTEES. 
The Homeland Security Act of 2002 (6 U.S.C. 101 
et seq.) is amended by adding at the end the following: 
‘‘TITLE XVIII—PROTECTION OF 
CITIZENS AT HIGH-RISK NON-
PROFIT ORGANIZATIONS 
‘‘SEC. 1801. DEFINITIONS. 
‘‘In this title: 
‘‘(1) CONTRACT.—The term ‘contract’ means a 
contract between the Federal Government and a 
contractor selected from the list of certified contrac-
tors to perform security enhancements or provide 
technical assistance approved by the Secretary under 
this title. 
‘‘(2) FAVORABLE
REPAYMENT
TERMS.—The 
term ‘favorable repayment terms’ means the repay-
ment terms of loans offered to nonprofit organiza-
tions under this title that—
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‘‘(A) are determined by the Secretary, in 
consultation with the Secretary of the Treasury, 
to be favorable under current market condi-
tions; 
‘‘(B) have interest rates at least 1 full per-
centage point below the market rate; and 
‘‘(C) provide for repayment over a term 
not less than 25 years. 
‘‘(3) NONPROFIT
ORGANIZATION.—The term 
‘nonprofit organization’ means an organization 
that—
‘‘(A) is described under section 501(c)(3) 
of the Internal Revenue Code of 1986 and ex-
empt from taxation under section 501(a) of 
such Code; and 
‘‘(B) is designated by the Secretary under 
section 1803(a). 
‘‘(4) SECURITY
ENHANCEMENTS.—The term 
‘security enhancements’—
‘‘(A) means the purchase and installation 
of security equipment in real property (includ-
ing buildings and improvements), owned or 
leased by a nonprofit organization, specifically 
in response to the risk of attack at a nonprofit
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organization by an international terrorist orga-
nization; 
‘‘(B) includes software security measures; 
and 
‘‘(C) does not include enhancements that 
would otherwise have been reasonably necessary 
due to nonterrorist threats. 
‘‘(5) TECHNICAL ASSISTANCE.—The term ‘tech-
nical assistance’—
‘‘(A) means guidance, assessment, rec-
ommendations, and any other provision of infor-
mation or expertise which assists nonprofit or-
ganizations in— 
‘‘(i) identifying security needs; 
‘‘(ii) purchasing and installing secu-
rity enhancements; 
‘‘(iii) training employees to use and 
maintain security enhancements; or 
‘‘(iv) training employees to recognize 
and respond to international terrorist 
threats; and 
‘‘(B) does not include technical assistance 
that would otherwise have been reasonably nec-
essary due to nonterrorist threats.
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‘‘SEC. 1802. AUTHORITY TO ENTER INTO CONTRACTS AND 
ISSUE FEDERAL LOAN GUARANTEES. 
‘‘(a) IN GENERAL.—The Secretary may— 
‘‘(1) enter into contracts with certified contrac-
tors for security enhancements and technical assist-
ance for nonprofit organizations; and 
‘‘(2) issue Federal loan guarantees to financial 
institutions in connection with loans made by such 
institutions to nonprofit organizations for security 
enhancements and technical assistance. 
‘‘(b) LOANS.—The Secretary may guarantee loans 
under this title—
‘‘(1) only to the extent provided for in advance 
by appropriations Acts; and 
‘‘(2) only to the extent such loans have favor-
able repayment terms. 
‘‘SEC. 1803. ELIGIBILITY CRITERIA. 
‘‘(a) IN GENERAL.—The Secretary shall designate 
nonprofit organizations as high-risk nonprofit organiza-
tions eligible for contracts or loans under this title based 
on the vulnerability of the specific site of the nonprofit 
organization to international terrorist attacks. 
‘‘(b) VULNERABILITY DETERMINATION.—In deter-
mining vulnerability to international terrorist attacks and 
eligibility for security enhancements or technical assist-
ance under this title, the Secretary shall consider—
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‘‘(1) threats of international terrorist organiza-
tions (as designated by the State Department) 
against any group of United States citizens who op-
erate or are the principal beneficiaries or users of 
the nonprofit organization; 
‘‘(2) prior attacks, within or outside the United 
States, by international terrorist organizations 
against the nonprofit organization or entities associ-
ated with or similarly situated as the nonprofit orga-
nization; 
‘‘(3) the symbolic value of the site as a highly 
recognized United States cultural or historical insti-
tution that renders the site a possible target of 
international terrorism; 
‘‘(4) the role of the nonprofit organization in 
responding to international terrorist attacks; and 
‘‘(5) any recommendations of the applicable 
State Homeland Security Authority established 
under section 1806 or Federal, State, and local law 
enforcement authorities. 
‘‘(c) DOCUMENTATION.—In order to be eligible for 
security enhancements, technical assistance or loan guar-
antees under this title, the nonprofit organization shall 
provide the Secretary with documentation that—
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‘‘(1) the nonprofit organization hosted a gath-
ering of at least 100 or more persons at least once 
each month at the nonprofit organization site during 
the preceding 12 months; or 
‘‘(2) the nonprofit organization provides serv-
ices to at least 500 persons each year at the non-
profit organization site. 
‘‘(d) TECHNICAL ASSISTANCE ORGANIZATIONS.—If 2 
or more nonprofit organizations establish another non-
profit organization to provide technical assistance, that es-
tablished organization shall be eligible to receive security 
enhancements and technical assistance under this title 
based upon the collective risk of the nonprofit organiza-
tions it serves. 
‘‘SEC. 1804. USE OF LOAN GUARANTEES. 
‘‘Funds borrowed from lending institutions, which 
are guaranteed by the Federal Government under this 
title, may be used for technical assistance and security en-
hancements. 
‘‘SEC. 1805. NONPROFIT ORGANIZATION APPLICATIONS. 
‘‘(a) IN GENERAL.—A nonprofit organization desir-
ing assistance under this title shall submit a separate ap-
plication for each specific site needing security enhance-
ments or technical assistance. 
‘‘(b) CONTENT.—Each application shall include—
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‘‘(1) a detailed request for security enhance-
ments and technical assistance, from a list of ap-
proved enhancements and assistance issued by the 
Secretary under this title; 
‘‘(2) a description of the intended uses of funds 
to be borrowed under Federal loan guarantees; and 
‘‘(3) such other information as the Secretary 
shall require. 
‘‘(c) JOINT APPLICATION.—Two or more nonprofit 
organizations located on contiguous sites may submit a 
joint application. 
‘‘SEC. 1806. REVIEW BY STATE HOMELAND SECURITY AU-
THORITIES. 
‘‘(a) ESTABLISHMENT OF STATE HOMELAND SECU-
RITY AUTHORITIES.—In accordance with regulations pre-
scribed by the Secretary, each State may establish a State 
Homeland Security Authority to carry out this title. 
‘‘(b) APPLICATIONS.—
‘‘(1) SUBMISSION.—Applications shall be sub-
mitted to the applicable State Homeland Security 
Authority. 
‘‘(2) EVALUATION.—After consultation with 
Federal, State, and local law enforcement authori-
ties, the State Homeland Security Authority shall 
evaluate all applications using the criteria under sec-
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tion 1803 and transmit all qualifying applications to 
the Secretary ranked by severity of risk of inter-
national terrorist attack. 
‘‘(3) APPEAL.—An applicant may appeal the 
finding that an application is not a qualifying appli-
cation to the Secretary under procedures that the 
Secretary shall issue by regulation not later than 90 
days after the date of enactment of this title. 
‘‘SEC. 1807. SECURITY ENHANCEMENT AND TECHNICAL AS-
SISTANCE CONTRACTS AND LOAN GUARAN-
TEES. 
‘‘(a) IN GENERAL.—Upon receipt of the applications, 
the Secretary shall select applications for execution of se-
curity enhancement and technical assistance contracts, or 
issuance of loan guarantees, giving preference to the non-
profit organizations determined to be at greatest risk of 
international terrorist attack based on criteria under sec-
tion 1803. 
‘‘(b) SECURITY ENHANCEMENTS
AND TECHNICAL 
ASSISTANCE; FOLLOWED BY LOAN GUARANTEES.—The 
Secretary shall execute security enhancement and tech-
nical assistance contracts for the highest priority appli-
cants until available funds are expended, after which loan 
guarantees shall be made available for additional appli-
cants determined to be at high risk, up to the authorized
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amount of loan guarantees. The Secretary may provide 
with respect to a single application a combination of such 
contracts and loan guarantees. 
‘‘(c) JOINT APPLICATIONS.—Special preference shall 
be given to joint applications submitted on behalf of mul-
tiple nonprofit organizations located in contiguous set-
tings. 
‘‘(d) MAXIMIZING AVAILABLE FUNDS.—Subject to 
subsection (b), the Secretary shall execute security en-
hancement and technical assistance contracts in such 
amounts as to maximize the number of high-risk appli-
cants nationwide receiving assistance under this title. 
‘‘(e) APPLICANT NOTIFICATION.—Upon selecting a 
nonprofit organization for assistance under this title, the 
Secretary shall notify the nonprofit organization that the 
Federal Government is prepared to enter into a contract 
with certified contractors to install specified security en-
hancements or provide specified technical assistance at the 
site of the nonprofit organization. 
‘‘(f) CERTIFIED CONTRACTORS.—
‘‘(1) IN GENERAL.—Upon receiving a notifica-
tion under subsection (e), the nonprofit organization 
shall select a certified contractor to perform the 
specified security enhancements, from a list of cer-
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tified contractors issued and maintained by the Sec-
retary under subsection (j). 
‘‘(2) LIST.—The list referred to in paragraph 
(1) shall be comprised of contractors selected on the 
basis of—
‘‘(A) technical expertise; 
‘‘(B) performance record including quality 
and timeliness of work performed; 
‘‘(C) adequacy of employee criminal back-
ground checks; and 
‘‘(D) price competitiveness. 
‘‘(3) OTHER
CERTIFIED
CONTRACTORS.—The 
Secretary shall include on the list of certified con-
tractors additional contractors selected by senior of-
ficials at State Homeland Security Authorities and 
the chief executives of county and other local juris-
dictions. Such additional certified contractors shall 
be selected on the basis of the criteria under para-
graph (2). 
‘‘(g) ENSURING THE AVAILABILITY OF CONTRAC-
TORS.—If the list of certified contractors under this sec-
tion does not include any contractors who can begin work 
on the security enhancements or technical assistance with-
in 60 days after applicant notification, the nonprofit orga-
nization may submit a contractor not currently on the list
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to the Secretary for the Secretary’s review. If the Sec-
retary does not include the submitted contractor on the 
list of certified contractors within 60 days after the sub-
mission and does not place an alternative contractor on 
the list within the same time period (who would be avail-
able to begin the specified work within that 60-day pe-
riod), the Secretary shall immediately place the submitted 
contractor on the list of certified contractors and such con-
tractor shall remain on such list until—
‘‘(1) the specified work is completed; or 
‘‘(2) the Secretary can show cause why such 
contractor may not retain certification, with such de-
terminations subject to review by the Comptroller 
General of the United States. 
‘‘(h) CONTRACTS.—Upon selecting a certified con-
tractor to provide security enhancements and technical as-
sistance approved by the Secretary under this title, the 
nonprofit organization shall notify the Secretary of such 
selection. The Secretary shall deliver a contract to such 
contractor within 10 business days after such notification. 
‘‘(i) CONTRACTS FOR ADDITIONAL WORK OR UP-
GRADES.—A nonprofit organization, using its own funds, 
may enter into an additional contract with the certified 
contractor, for additional or upgraded security enhance-
ments or technical assistance. Such additional contracts
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shall be separate contracts between the nonprofit organi-
zation and the contractor. 
‘‘(j) EXPEDITING ASSISTANCE.—In order to expedite 
assistance to nonprofit organizations, the Secretary 
shall— 
‘‘(1) compile a list of approved technical assist-
ance and security enhancement activities within 45 
days after the date of enactment of this title; 
‘‘(2) publish in the Federal Register within 60 
days after such date of enactment a request for con-
tractors to submit applications to be placed on the 
list of certified contractors under this section; 
‘‘(3) after consultation with the Secretary of 
the Treasury, publish in the Federal Register within 
60 days after such date of enactment, prescribe reg-
ulations setting forth the conditions under which 
loan guarantees shall be issued under this title, in-
cluding application procedures, expeditious review of 
applications, underwriting criteria, assignment of 
loan guarantees, modifications, commercial validity, 
defaults, and fees; and 
‘‘(4) publish in the Federal Register within 120 
days after such date of enactment (and every 30 
days thereafter) a list of certified contractors, in-
cluding those selected by State Homeland Security
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Authorities, county, and local officials, with coverage 
of all 50 States, the District of Columbia, and the 
territories. 
‘‘SEC. 
1808. 
LOCAL 
LAW 
ENFORCEMENT 
ASSISTANCE 
GRANTS. 
‘‘(a) IN GENERAL.—The Secretary may provide 
grants to units of local government to offset incremental 
costs associated with law enforcement in areas where there 
is a high concentration of nonprofit organizations. 
‘‘(b) USE.—Grant funds received under this section 
may be used only for personnel costs or for equipment 
needs specifically related to such incremental costs. 
‘‘(c) MAXIMIZATION
OF IMPACT.—The Secretary 
shall award grants in such amounts as to maximize the 
impact of available funds in protecting nonprofit organiza-
tions nationwide from international terrorist attacks. 
‘‘SEC. 1809. OFFICE OF COMMUNITY RELATIONS AND CIVIC 
AFFAIRS. 
‘‘(a) IN GENERAL.—There is established within the 
Department, the Office of Community Relations and Civic 
Affairs to administer grant programs for nonprofit organi-
zations and local law enforcement assistance. 
‘‘(b) ADDITIONAL RESPONSIBILITIES.—The Office of 
Community Relations and Civic Affairs shall—
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‘‘(1) coordinate community relations efforts of 
the Department; 
‘‘(2) serve as the official liaison of the Secretary 
to the nonprofit, human and social services, and 
faith-based communities; and 
‘‘(3) assist in coordinating the needs of those 
communities with the Citizen Corps program. 
‘‘SEC. 1810. AUTHORIZATION OF APPROPRIATIONS AND 
LOAN GUARANTEES. 
‘‘(a) NONPROFIT ORGANIZATIONS PROGRAM.—There 
are authorized to be appropriated to the Department to 
carry out the nonprofit organization program under this 
title, $100,000,000 for fiscal year 2005 and such sums 
as may be necessary for fiscal years 2006 and 2007. 
‘‘(b) LOCAL
LAW
ENFORCEMENT
ASSISTANCE 
GRANTS.—There are authorized to be appropriated to the 
Department for local law enforcement assistance grants 
under section 1808, $50,000,000 for fiscal year 2005 and 
such sums as may be necessary for fiscal years 2006 and 
2007. 
‘‘(c) OFFICE OF COMMUNITY RELATIONS AND CIVIC 
AFFAIRS.—There are authorized to be appropriated to the 
Department for the Office of Community Relations and 
Civic Affairs under section 1809, $5,000,000 for fiscal
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year 2005 and such sums as may be necessary for fiscal 
years 2006 and 2007. 
‘‘(d) LOAN GUARANTEES.—
‘‘(1) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated in each of 
fiscal years 2005, 2006, and 2007, such amounts as 
may be required under the Federal Credit Act with 
respect to Federal loan guarantees authorized by 
this title, which shall remain available until ex-
pended. 
‘‘(2) LIMITATION.—The aggregate value of all 
loans for which loan guarantees are issued under 
this title by the Secretary may not exceed 
$250,000,000 in each of fiscal years 2005, 2006, 
and 2007.’’. 
SEC. 5. TECHNICAL AND CONFORMING AMENDMENT. 
The table of contents under section 1(b) of the Home-
land Security Act of 2002 (6 U.S.C. 101(b)) is amended 
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 guaran-
tees. 
‘‘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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