[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2275 Reported in Senate (RS)]






                                                       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.

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

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 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.

SEC. 3. PURPOSES.

     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.

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 NONPROFIT 
                             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 contractors to perform security 
        enhancements or provide technical assistance approved by the 
        Secretary under this title.
        <DELETED>    ``(2) Favorable repayment terms.--The term 
        `favorable repayment terms' means the repayment terms of loans 
        offered to nonprofit organizations under this title that--
        </DELETED>
                <DELETED>    ``(A) are determined by the Secretary, in 
                consultation with the Secretary of the Treasury, to be 
                favorable under current market conditions;</DELETED>
                <DELETED>    ``(B) have interest rates at least 1 full 
                percentage point below the market rate; and</DELETED>
                <DELETED>    ``(C) provide for repayment over a term 
                not less than 25 years.</DELETED>
            ``<DELETED>(3)</DELETED> (2) 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 exempt from taxation 
                under section 501(a) of such Code; and
                    ``(B) is designated by the Secretary under section 
                1803(a).
            ``<DELETED>(4)</DELETED> (3) Security enhancements.--The 
        term `security enhancements'--
                    ``(A) 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;
                    ``(B) includes software security measures; and
                    ``(C) does not include enhancements that would 
                otherwise have been reasonably necessary due to 
                nonterrorist threats.
            ``<DELETED>(5)</DELETED> (4) Technical assistance.--The 
        term `technical assistance'--
                    ``(A) means guidance, assessment, recommendations, 
                and any other provision of information or expertise 
                which assists nonprofit organizations in--
                            ``(i) identifying security needs;
                            ``(ii) purchasing and installing security 
                        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 necessary due to 
                nonterrorist threats.

``SEC. 1802. AUTHORITY TO ENTER INTO CONTRACTS AND ISSUE FEDERAL LOAN 
              GUARANTEES.

    ``(a) In General.--The Secretary may--
            ``(1) enter into contracts with certified contractors for 
        security enhancements and technical assistance 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; <DELETED>and
        <DELETED>    ``(2) only to the extent such loans have favorable 
        repayment terms.</DELETED>
            ``(2) under such terms and conditions as the Secretary 
        considers to be appropriate, consistent with section 503 of the 
        Federal Credit Reform Act of 1990 (2 U.S.C. 661b); and
            ``(3) only to the extent that the terms and conditions 
        include a requirement that the decision to provide a loan 
        guarantee to a financial institution and the amount of the 
        guarantee does not in any way depend on the purpose, function, 
        or identity of the organization to which the financial 
        institution has made, or intends to make, a loan.

``SEC. 1803. ELIGIBILITY CRITERIA.

    ``(a) In General.--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.
    ``(b) Vulnerability Determination.--In determining vulnerability to 
international terrorist attacks and eligibility for security 
enhancements or technical assistance under this title, the Secretary 
shall consider--
            ``(1) 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;
            ``(2) 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;
            ``(3) 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;
            ``(4) the role of the nonprofit organization in responding 
        to international terrorist attacks; <DELETED>and
        </DELETED>    ``(5) any recommendations of the applicable 
        <DELETED>State Homeland Security Authority established</DELETED> 
        designated State agency under section 1806 or Federal, State, 
        and local law enforcement authorities<DELETED>.</DELETED>; and
            ``(6) the likelihood of physical harm to persons at the 
        site or in the area surrounding the site.
<DELETED>    ``(c) Documentation.--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--</DELETED>
        <DELETED>    ``(1) 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</DELETED>
        <DELETED>    ``(2) the nonprofit organization provides services 
        to at least 500 persons each year at the nonprofit organization 
        site.</DELETED>
    ``<DELETED>(d)</DELETED> (c) Technical Assistance Organizations.--
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.

``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 enhancements.

``SEC. 1805. NONPROFIT ORGANIZATION APPLICATIONS.

    ``(a) In General.--A nonprofit organization desiring assistance 
under this title shall submit a separate application for each specific 
site needing security enhancements or technical assistance.
    ``(b) Content.--Each application shall include--
            ``(1) a detailed request for security enhancements and 
        technical assistance, from a list of approved 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 <DELETED>STATE HOMELAND SECURITY AUTHORITIES</DELETED> 
              DESIGNATED STATE AGENCIES.

    ``(a) <DELETED>Establishment of State Homeland Security Authorities</DELETED> 
Designated State Agencies.--In accordance with regulations prescribed 
by the Secretary, each State <DELETED>may establish a State Homeland 
Security Authority</DELETED> shall designate a State agency to carry 
out this title.
    ``(b) Applications.--
            ``(1) Submission.--Applications shall be submitted to the 
        applicable <DELETED>State Homeland Security Authority</DELETED> 
        designated State agency.
            ``(2) Evaluation.--After consultation with Federal, State, 
        and local law enforcement authorities, the <DELETED>State 
        Homeland Security Authority</DELETED> designated State agency 
        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.
            ``(3) Appeal.--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.

``SEC. 1807. SECURITY ENHANCEMENT AND TECHNICAL ASSISTANCE CONTRACTS 
              AND LOAN GUARANTEES.

    ``(a) In General.--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.
    ``(b) Security Enhancements and Technical Assistance; Followed by 
Loan Guarantees.--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.
    ``(c) Joint Applications.--Special preference shall be given to 
joint applications submitted on behalf of multiple nonprofit 
organizations located in contiguous settings.
    ``(d) Maximizing Available Funds.--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.
    ``(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 enhancements or provide specified technical 
assistance at the site of the nonprofit organization.
    ``(f) Certified Contractors.--
            ``(1) In general.--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).
            ``(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 background 
                checks; and
                    ``(D) price competitiveness.
            ``(3) Other certified contractors.--The Secretary shall 
        include on the list of certified contractors additional 
        contractors selected by senior officials at <DELETED>State 
        Homeland Security Authorities</DELETED> designated State 
        agencies 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).
    ``(g) Ensuring the Availability of Contractors.--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--
            ``(1) the specified work is completed; or
            ``(2) 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.
    ``(h) Contracts.--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.
    ``(i) Contracts for Additional Work or Upgrades.--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.
    ``(j) Expediting Assistance.--In order to expedite assistance to 
nonprofit organizations, the Secretary shall--
            ``(1) compile a list of approved technical assistance 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 contractors 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 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
            ``(4) 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 
        <DELETED>State Homeland Security Authorities</DELETED> 
        designated State agencies, 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 organizations 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 organizations and local law enforcement 
assistance.
    ``(b) Additional Responsibilities.--The Office of Community 
Relations and Civic Affairs shall--
            ``(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 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 
        expended.
            ``(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 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.
<DELETED>``Sec. 1806. Review by State Homeland Security Authorities.
</DELETED>``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 U.S.C. 101 et seq.) to 
   provide for homeland security assistance for high-risk nonprofit 
                 organizations, and for other purposes.

_______________________________________________________________________

                           November 10, 2004

                        Reported with amendments