1. This Act may be cited as the High Risk Nonprofit Security Enhancement Act of 2004
.
2.Congress finds that there is a public interest in protecting high-risk nonprofit organizations from international terrorist attacks that would disrupt the vital services 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.
3. The purposes of this Act are to—
(1)establish within the Department of Homeland 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 enhancements and technical assistance;
(2)establish a program within the Department of Homeland Security to provide grants to local governments to assist with incremental costs associated with law enforcement in areas in which there are a high concentration of high-risk nonprofit organizations vulnerable to international terrorist attacks; and
(3)establish an Office of Community Relations and Civic Affairs within the Department of Homeland Security to focus on security needs of high-risk nonprofit organizations with respect to international terrorist threats.
4.Authority to enter into contracts and issue Federal loan guaranteesThe Homeland Security Act of 2002 (6 U.S.C. 101 et seq.) is amended by adding at the end the following:
<enum>XVIII</enum><header>Protection of citizens at high-risk nonprofit organizations</header>
<section id="H3F2621568876440A99F019B089003119"><enum>1801.</enum><header>Definitions</header>
<subsection id="H2D642E0389284850BD9FD652FF045969"><enum></enum><text display-inline="yes-display-inline">In this title:</text>
<paragraph id="HC721B0D348ED49EB9814FB6D87040081"><enum>(1)</enum><header>Contract</header> <text display-inline="yes-display-inline">The term <term>contract</term> means a contract between the Federal Government and a contractor selected from the list of certified contractors to perform security enhancements or provide technical assistance approved by the Secretary under this title.</text> </paragraph>
<paragraph id="HBB43FD4504EC4551A698004877F2A5FA"><enum>(2)</enum><header>Favorable repayment terms</header><text>The term <term>favorable repayment terms</term> means the repayment terms of loans offered to nonprofit organizations under this title that—</text>
<subparagraph id="HD4C2D791D0A7477A9E0893CE32FBAFCC"><enum>(A)</enum><text>are determined by the Secretary, in consultation with the Secretary of the Treasury, to be favorable under current market conditions; </text> </subparagraph>
<subparagraph id="H43011E5345C342B695DDA2614493DA3B"><enum>(B)</enum><text>have interest rates at least 1 full percentage point below the market rate; and </text> </subparagraph>
<subparagraph id="H4C9B9AE8D2EA4A48B900CAF4DA1020D1"><enum>(C)</enum><text>provide for repayment over a term not less than 25 years. </text> </subparagraph></paragraph>
<paragraph id="H0A20E066DE7A4DFAB900E86E73A32CEF"><enum>(3)</enum><header>Nonprofit organization</header><text>The term <term>nonprofit organization</term> means an organization that—</text>
<subparagraph id="H38D62A9A4F4E464AB0C0CC3BEABB033F"><enum>(A)</enum><text>is described under <external-xref legal-doc="usc" parsable-cite="usc/26/501">section 501(c)(3)</external-xref> of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; and</text> </subparagraph>
<subparagraph id="H72953FB436E34558B5EC00A3919E572F"><enum>(B)</enum><text>is designated by the Secretary under section 1803(a).</text> </subparagraph></paragraph>
<paragraph id="H568CA03DA2B3476EA36EF845CADFF0A8"><enum>(4)</enum><header>Security enhancements</header><text>The term <term>security enhancements</term>—</text>
<subparagraph id="HE45F5CDC7FC34887B87CC0B9AE5CD481"><enum>(A)</enum><text> means the purchase and installation of security equipment in real property (including buildings and improvements), owned or leased by a nonprofit organization, specifically in response to the risk of attack at a nonprofit organization by an international terrorist organization;</text> </subparagraph>
<subparagraph id="HBAEA8ED3CFE74488B226BD1CB15E9D13"><enum>(B)</enum><text>includes software security measures; and</text> </subparagraph>
<subparagraph id="H6D849778488F4FC1B7CF5FE05600F201"><enum>(C)</enum><text>does not include enhancements that would otherwise have been reasonably necessary due to nonterrorist threats.</text> </subparagraph></paragraph>
<paragraph id="HB0D962AC2EE74602968BC56E0085F192"><enum>(5)</enum><header>Technical assistance</header><text>The term <term>technical assistance</term>—</text>
<subparagraph id="H5F9E893F78A94A67B133D3CD20ED8826"><enum>(A)</enum><text> means guidance, assessment, recommendations, and any other provision of information or expertise which assists nonprofit organizations in— </text>
<clause id="HCE5D5F8AE533479DA7EA04DB83A11D52"><enum>(i)</enum><text>identifying security needs; </text> </clause>
<clause id="H04226395867245A39BD374F8B62E9ED4"><enum>(ii)</enum><text>purchasing and installing security enhancements; </text> </clause>
<clause id="HC00A542D9DC24F19B12DDD7C2100FAC1"><enum>(iii)</enum><text>training employees to use and maintain security enhancements; or </text> </clause>
<clause id="HCAA8970F7DA740F39263FC68B407CD50"><enum>(iv)</enum><text>training employees to recognize and respond to international terrorist threats; and </text> </clause></subparagraph>
<subparagraph id="H0E3609B370384D00B8E3EDC42088D784"><enum>(B)</enum><text>does not include technical assistance that would otherwise have been reasonably necessary due to nonterrorist threats.</text> </subparagraph></paragraph></subsection></section>
<section id="HA5C21025EC7849A3B66F92455DB6D922"><enum>1802.</enum><header>Authority to enter into contracts and issue Federal loan guarantees</header>
<subsection id="HDCC7BD64529F4B0089AB2199002C4BBC"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary may— </text>
<paragraph id="H20EE29B9B17D44029EBE8C00FB519774"><enum>(1)</enum><text>enter into contracts with certified contractors for security enhancements and technical assistance for nonprofit organizations; and </text> </paragraph>
<paragraph id="H750643A0CB8840C8A0B8005730C5457F"><enum>(2)</enum><text>issue Federal loan guarantees to financial institutions in connection with loans made by such institutions to nonprofit organizations for security enhancements and technical assistance. </text> </paragraph></subsection>
<subsection id="HECA1EDF5DF7349C8A0C9D48CDC728228"><enum>(b)</enum><header>Loans</header><text>The Secretary may guarantee loans under this title—</text>
<paragraph id="HAE100A7A973641F4B81D1E342CF66B00"><enum>(1)</enum><text>only to the extent provided for in advance by appropriations Acts; and</text> </paragraph>
<paragraph id="HFA8283A5AC5B4D6BAC5506F6F943EA07"><enum>(2)</enum><text>only to the extent such loans have favorable repayment terms.</text> </paragraph></subsection></section>
<section id="HA183DA0F27144EF8A117F3B4D1E3417B"><enum>1803.</enum><header>Eligibility criteria</header>
<subsection id="H48DBCEE71C5D4CCE98F8CAD4E779EE8"><enum>(a)</enum><header>In general</header><text>The Secretary shall designate nonprofit organizations as high-risk nonprofit organizations eligible for contracts or loans under this title based on the vulnerability of the specific site of the nonprofit organization to international terrorist attacks. </text> </subsection>
<subsection id="H90596CF7184C488992F25D78E0FC7B04"><enum>(b)</enum><header>Vulnerability determination</header><text>In determining vulnerability to international terrorist attacks and eligibility for security enhancements or technical assistance under this title, the Secretary shall consider—</text>
<paragraph id="H44E2D851CBB74E24A32CB794578E37B9"><enum>(1)</enum><text>threats of international terrorist organizations (as designated by the State Department) against any group of United States citizens who operate or are the principal beneficiaries or users of the nonprofit organization; </text> </paragraph>
<paragraph id="H33484C3A125C4CD3A47B89F92600839B"><enum>(2)</enum><text>prior attacks, within or outside the United States, by international terrorist organizations against the nonprofit organization or entities associated with or similarly situated as the nonprofit organization; </text> </paragraph>
<paragraph id="H15DD5D1A15FB4149A17002ED34163E03"><enum>(3)</enum><text>the symbolic value of the site as a highly recognized United States cultural or historical institution that renders the site a possible target of international terrorism; </text> </paragraph>
<paragraph id="H1853EB652D6E45D78C352E6F58D30014"><enum>(4)</enum><text>the role of the nonprofit organization in responding to international terrorist attacks; and</text> </paragraph>
<paragraph id="HE5DC58D7C2704286B1E9C712CE6D64F3"><enum>(5)</enum><text>any recommendations of the applicable State Homeland Security Authority established under section 1806 or Federal, State, and local law enforcement authorities. </text> </paragraph></subsection>
<subsection id="H7755396928B145D890705BCFE0636905"><enum>(c)</enum><header>Documentation</header><text>In order to be eligible for security enhancements, technical assistance or loan guarantees under this title, the nonprofit organization shall provide the Secretary with documentation that—</text>
<paragraph id="H596412A1BE0748E68EAF80FAF13F1C10"><enum>(1)</enum><text>the nonprofit organization hosted a gathering of at least 100 or more persons at least once each month at the nonprofit organization site during the preceding 12 months; or </text> </paragraph>
<paragraph id="HB2F92A68D31742EFB437E70016B960F6"><enum>(2)</enum><text>the nonprofit organization provides services to at least 500 persons each year at the nonprofit organization site. </text> </paragraph></subsection>
<subsection id="HF7A35360DC2E48778749ECCE67F3C00"><enum>(d)</enum><header>Technical assistance organizations</header><text>If 2 or more nonprofit organizations establish another nonprofit organization to provide technical assistance, that established organization shall be eligible to receive security enhancements and technical assistance under this title based upon the collective risk of the nonprofit organizations it serves.</text> </subsection></section>
<section id="HB5B16409BE2243E593E2A57C296D743F"><enum>1804.</enum><header>Use of loan guarantees</header><text display-inline="no-display-inline">Funds borrowed from lending institutions, which are guaranteed by the Federal Government under this title, may be used for technical assistance and security enhancements.</text> </section>
<section id="H5499591C0CB94AF000CB8F20D8C5A9A4"><enum>1805.</enum><header>Nonprofit organization applications</header>
<subsection id="H56A2F29C4B13459189BB65B694239DDD"><enum>(a)</enum><header>In general</header><text>A nonprofit organization desiring assistance under this title shall submit a separate application for each specific site needing security enhancements or technical assistance.</text> </subsection>
<subsection id="HD1533475125848A7BA3F00DE8FA540B7"><enum>(b)</enum><header>Content</header><text>Each application shall include—</text>
<paragraph id="HA105A077EA844DB9BFC4E0698B876196"><enum>(1)</enum><text>a detailed request for security enhancements and technical assistance, from a list of approved enhancements and assistance issued by the Secretary under this title; </text> </paragraph>
<paragraph id="HAE1530D6503544359C90A0D6F66D7E1C"><enum>(2)</enum><text>a description of the intended uses of funds to be borrowed under Federal loan guarantees; and </text> </paragraph>
<paragraph id="HC6A0459413B74CD59048225C00FCDA8"><enum>(3)</enum><text>such other information as the Secretary shall require. </text> </paragraph></subsection>
<subsection id="HC446F278E9CF45908891097EEAFBFA06"><enum>(c)</enum><header>Joint application</header><text>Two or more nonprofit organizations located on contiguous sites may submit a joint application.</text> </subsection></section>
<section id="HACC4EAEF8C74495689FC8D623F7BC609"><enum>1806.</enum><header>Review by State Homeland Security Authorities</header>
<subsection id="H8E6EDA4DE78D449FB5089CD57841BC58"><enum>(a)</enum><header>Establishment of State Homeland Security Authorities</header><text>In accordance with regulations prescribed by the Secretary, each State may establish a State Homeland Security Authority to carry out this title.</text> </subsection>
<subsection id="H36C3E73798B84FB3A67DEB969DD2ACD7"><enum>(b)</enum><header>Applications</header>
<paragraph id="H4360C69573334C8795048F46E1AB6481"><enum>(1)</enum><header>Submission</header><text>Applications shall be submitted to the applicable State Homeland Security Authority. </text> </paragraph>
<paragraph id="H95BD8710148D41038E7D0056AD8910E1"><enum>(2)</enum><header>Evaluation</header><text>After consultation with Federal, State, and local law enforcement authorities, the State Homeland Security Authority shall evaluate all applications using the criteria under section 1803 and transmit all qualifying applications to the Secretary ranked by severity of risk of international terrorist attack. </text> </paragraph>
<paragraph id="H395A619DF52F4BF1BDAC00CD6D1389F"><enum>(3)</enum><header>Appeal</header><text>An applicant may appeal the finding that an application is not a qualifying application 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.</text> </paragraph></subsection></section>
<section id="HCFF75DA1ADC84105B880706EAF5B55B2"><enum>1807.</enum><header>Security enhancement and technical assistance contracts and loan guarantees</header>
<subsection id="HD888F0F9966A406AA800EE52D5DBE280"><enum>(a)</enum> <header>In General</header><text>Upon receipt of the applications, the Secretary shall select applications for execution of security enhancement and technical assistance contracts, or issuance of loan guarantees, giving preference to the nonprofit organizations determined to be at greatest risk of international terrorist attack based on criteria under section 1803.</text> </subsection>
<subsection id="H0029E8CF25C942C193B865022EB94D8F"><enum>(b)</enum><header>Security Enhancements and Technical Assistance; Followed by Loan Guarantees</header><text>The Secretary shall execute security enhancement and technical assistance contracts for the highest priority applicants until available funds are expended, after which loan guarantees shall be made available for additional applicants determined to be at high risk, up to the authorized amount of loan guarantees. The Secretary may provide with respect to a single application a combination of such contracts and loan guarantees. </text> </subsection>
<subsection id="H7D69DA9077E34421AB00B770E4E389C1"><enum>(c)</enum><header>Joint applications</header><text>Special preference shall be given to joint applications submitted on behalf of multiple nonprofit organizations located in contiguous settings. </text> </subsection>
<subsection id="HED4A01369A8E4A2991FC27D15CC6ED8"><enum>(d)</enum><header>Maximizing Available Funds</header><text>Subject to subsection (b), the Secretary shall execute security enhancement and technical assistance contracts in such amounts as to maximize the number of high-risk applicants nationwide receiving assistance under this title.</text> </subsection>
<subsection id="HA04A6829155D4828A9B0F11247CC03C2"><enum>(e)</enum><header>Applicant Notification</header><text>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 enhancements or provide specified technical assistance at the site of the nonprofit organization.</text> </subsection>
<subsection id="H3305F2F40BB8443B94A6DBC1276AB88"><enum>(f)</enum><header>Certified Contractors</header>
<paragraph id="H725AB56C2F9C4A9CA800DA1755AABD2"><enum>(1)</enum><header>In general</header><text>Upon receiving a notification under subsection (e), the nonprofit organization shall select a certified contractor to perform the specified security enhancements, from a list of certified contractors issued and maintained by the Secretary under subsection (j). </text> </paragraph>
<paragraph id="HE41A5ED148FF4D49AA95CF00E96799C"><enum>(2)</enum><header>List</header><text>The list referred to in paragraph (1) shall be comprised of contractors selected on the basis of—</text>
<subparagraph id="HCD9EE63D02754BBBA3C3D3934135F1E"><enum>(A)</enum><text>technical expertise;</text> </subparagraph>
<subparagraph id="H5D3267BC91D34A00A145958FFA352A"><enum>(B)</enum><text>performance record including quality and timeliness of work performed;</text> </subparagraph>
<subparagraph id="H5F72E4E861884A67A5C794760767D4D5"><enum>(C)</enum><text>adequacy of employee criminal background checks; and </text> </subparagraph>
<subparagraph id="H835B250F4FF5489E82BBF3F0483FE54D"><enum>(D)</enum><text>price competitiveness. </text> </subparagraph></paragraph>
<paragraph id="H58EAA39E534047369200AD61E02CE336"><enum>(3)</enum><header>Other certified contractors</header><text>The Secretary shall include on the list of certified contractors additional contractors selected by senior officials at State Homeland Security Authorities and the chief executives of county and other local jurisdictions. Such additional certified contractors shall be selected on the basis of the criteria under paragraph (2).</text> </paragraph></subsection>
<subsection id="HA047215FEC194443B800E86524A4775B"><enum>(g)</enum><header>Ensuring the Availability of Contractors</header><text>If the list of certified contractors under this section does not include any contractors who can begin work on the security enhancements or technical assistance within 60 days after applicant notification, the nonprofit organization may submit a contractor not currently on the list to the Secretary for the Secretary’s review. If the Secretary does not include the submitted contractor on the list of certified contractors within 60 days after the submission and does not place an alternative contractor on the list within the same time period (who would be available to begin the specified work within that 60-day period), the Secretary shall immediately place the submitted contractor on the list of certified contractors and such contractor shall remain on such list until—</text>
<paragraph id="H6D637FF4AA5E4049B100AE32BCFE27D4"><enum>(1)</enum><text>the specified work is completed; or</text> </paragraph>
<paragraph id="HB5DF671910764198A1B2DB5BE167CE52"><enum>(2)</enum><text>the Secretary can show cause why such contractor may not retain certification, with such determinations subject to review by the Comptroller General of the United States. </text> </paragraph></subsection>
<subsection id="HDB162481181B41029225B116E44FE1A6"><enum>(h)</enum><header>Contracts</header><text>Upon selecting a certified contractor to provide security enhancements and technical assistance 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.</text> </subsection>
<subsection id="H08FDE9A6840342689DD55054CBEB3CF1"><enum>(i)</enum><header>Contracts for Additional Work or Upgrades</header><text>A nonprofit organization, using its own funds, may enter into an additional contract with the certified contractor, for additional or upgraded security enhancements or technical assistance. Such additional contracts shall be separate contracts between the nonprofit organization and the contractor.</text> </subsection>
<subsection id="HB043E9A9CA2644638DCEE048B815BDC7"><enum>(j)</enum><header>Expediting Assistance</header><text>In order to expedite assistance to nonprofit organizations, the Secretary shall— </text>
<paragraph id="H084F590EA9A14D0CB0AFB19914A934AB"><enum>(1)</enum><text>compile a list of approved technical assistance and security enhancement activities within 45 days after the date of enactment of this title; </text> </paragraph>
<paragraph id="H4FF3C11607DE4CFE94D41B67005C38C1"><enum>(2)</enum><text>publish in the Federal Register within 60 days after such date of enactment a request for contractors to submit applications to be placed on the list of certified contractors under this section; </text> </paragraph>
<paragraph id="H39C61E3A2D1E4F748C70EA93D8B87B82"><enum>(3)</enum><text>after consultation with the Secretary of the Treasury, publish in the Federal Register within 60 days after such date of enactment, prescribe regulations setting forth the conditions under which loan guarantees shall be issued under this title, including application procedures, expeditious review of applications, underwriting criteria, assignment of loan guarantees, modifications, commercial validity, defaults, and fees; and </text> </paragraph>
<paragraph id="H7358174788BB40E2AAC97ED45E41ABED"><enum>(4)</enum><text>publish in the Federal Register within 120 days after such date of enactment (and every 30 days thereafter) a list of certified contractors, including those selected by State Homeland Security Authorities, county, and local officials, with coverage of all 50 States, the District of Columbia, and the territories. </text> </paragraph></subsection></section>
<section id="H0F244C6DD7B441B3A0E9AD2F00C79DBB"><enum>1808.</enum><header>Local law enforcement assistance grants</header>
<subsection id="H639C80C8B13C4B319639649D50107D49"><enum>(a)</enum><header>In General</header><text>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. </text> </subsection>
<subsection id="HDD72642823974F239EE300D335CDF2F"><enum>(b)</enum><header>Use</header><text>Grant funds received under this section may be used only for personnel costs or for equipment needs specifically related to such incremental costs. </text> </subsection>
<subsection id="H30CC1D442D6C4A2E87A46E7CECEDCBE7"><enum>(c)</enum><header>Maximization of Impact</header><text>The Secretary shall award grants in such amounts as to maximize the impact of available funds in protecting nonprofit organizations nationwide from international terrorist attacks.</text> </subsection></section>
<section id="HE0694B79A3364C58AEDC47C7D465AB45"><enum>1809.</enum><header>Office of Community Relations and Civic Affairs</header>
<subsection id="H7632F8B40DE8409DA98DB4D3CD5B42A5"><enum>(a)</enum><header>In General</header><text>There is established within the Department, the Office of Community Relations and Civic Affairs to administer grant programs for nonprofit organizations and local law enforcement assistance. </text> </subsection>
<subsection id="H2E50C7E460A14E9BA12EE771F28C328"><enum>(b)</enum><header>Additional Responsibilities</header><text>The Office of Community Relations and Civic Affairs shall—</text>
<paragraph id="HC2FE9B59E7E0447EB3AB47326921B433"><enum>(1)</enum><text>coordinate community relations efforts of the Department; </text> </paragraph>
<paragraph id="H923C78208DB841BBB6EEF000CFD2BC59"><enum>(2)</enum><text>serve as the official liaison of the Secretary to the nonprofit, human and social services, and faith-based communities; and </text> </paragraph>
<paragraph id="H2C1FDF5139454AAD9C859008AB80CD8"><enum>(3)</enum><text>assist in coordinating the needs of those communities with the Citizen Corps program.</text> </paragraph></subsection></section>
<section id="H14EED9F41BA34E6B85C463FE7ED14328"><enum>1810.</enum><header>Authorization of appropriations and loan guarantees</header>
<subsection id="HD1231725348041B48E0049E22F44A556"><enum>(a)</enum><header>Nonprofit organizations program</header><text>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. </text> </subsection>
<subsection id="H9EE03B304C624ACD9F462FDC2037EE1"><enum>(b)</enum><header>Local law enforcement assistance grants</header><text>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.</text> </subsection>
<subsection id="H06FFF0D932AD40388979F9E676EB1900"><enum>(c)</enum><header>Office of Community Relations and Civic Affairs</header><text>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 year 2005 and such sums as may be necessary for fiscal years 2006 and 2007. </text> </subsection>
<subsection id="H28B2861F5C7E410289733E77E42F77E"><enum>(d)</enum><header>Loan Guarantees</header>
<paragraph id="H847599180F6A43BA8B92E4FF31406CDD"><enum>(1)</enum><header>Authorization of appropriations</header><text>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 expended.</text> </paragraph>
<paragraph id="HA23D2EFFE7CE4CDCA0EFB2ECBC937F17"><enum>(2)</enum><header>Limitation</header><text>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.</text> </paragraph></subsection></section>.
5.Technical and conforming amendmentThe table of contents under section 1(b) of the Homeland 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 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.