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                                                   Calendar No. 193

116th Congress}                                          { Report
                                 SENATE
 1st Session  }                                          { 116-89

======================================================================
 
 PROTECTING FAITH-BASED AND NONPROFIT ORGANIZATIONS FROM TERRORISM ACT 
                                OF 2019

                               __________

                              R E P O R T

                                 OF THE

                   COMMITTEE ON HOMELAND SECURITY AND

                          GOVERNMENTAL AFFAIRS

                          UNITED STATES SENATE

                              TO ACCOMPANY

                                S. 1539

         TO AMEND THE HOMELAND SECURITY ACT OF 2002 TO PROVIDE
         FUNDING TO SECURE NONPROFIT FACILITIES FROM TERRORIST
                    ATTACKS, AND FOR OTHER PURPOSES

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


               September 10, 2019.--Ordered to be printed
               
               
                               __________
               
               
                    U.S. GOVERNMENT PUBLISHING OFFICE                    
                           WASHINGTON : 2019                     
          
-----------------------------------------------------------------------------------               
               
               
               
               
               
        COMMITTEE ON HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS

                    RON JOHNSON, Wisconsin, Chairman
ROB PORTMAN, Ohio                    GARY C. PETERS, Michigan
RAND PAUL, Kentucky                  THOMAS R. CARPER, Delaware
JAMES LANKFORD, Oklahoma             MAGGIE HASSAN, New Hampshire
MITT ROMNEY, Utah                    KAMALA D. HARRIS, California
RICK SCOTT, Florida                  KYRSTEN SINEMA, Arizona
MICHAEL B. ENZI, Wyoming             JACKY ROSEN, Nevada
JOSH HAWLEY, Missouri

                Gabrielle D'Adamo Singer, Staff Director
                   Joseph C. Folio III, Chief Counsel
             Barrett F. Percival, Professional Staff Member
               David M. Weinberg, Minority Staff Director
               Zachary I. Schram, Minority Chief Counsel
       Christopher J. Mulkins, Minority Professional Staff Member
                     Laura W. Kilbride, Chief Clerk
                     
                     
                     
                                                 Calendar No. 193

116th Congress}                                          { Report
                                 SENATE
 1st Session  }                                          { 116-89

======================================================================                     

 PROTECTING FAITH-BASED AND NONPROFIT ORGANIZATIONS FROM TERRORISM ACT 
                                OF 2019

                                _______
                                

               September 10, 2019.--Ordered to be printed

                                _______
                                

 Mr. Johnson, from the Committee on Homeland Security and Governmental 
                    Affairs, submitted the following

                              R E P O R T

                         [To accompany S. 1539]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Homeland Security and Governmental 
Affairs, to which was referred the bill (S. 1539) to amend the 
Homeland Security Act of 2002 to provide funding to secure 
nonprofit facilities from terrorist attacks, and for other 
purposes, having considered the same, reports favorably thereon 
without amendment and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
  I. Purpose and Summary..............................................1
 II. Background and Need for the Legislation..........................2
III. Legislative History..............................................3
 IV. Section-by-Section Analysis......................................3
  V. Evaluation of Regulatory Impact..................................4
 VI. Congressional Budget Office Cost Estimate........................4
VII. Changes in Existing Law Made by the Bill, as Reported............6

                         I. Purpose and Summary

    S. 1539, the Protecting Faith-Based and Nonprofit 
Organizations From Terrorism Act of 2019, authorizes an 
existing Department of Homeland Security (DHS) grant program, 
the Nonprofit Security Grant Program (NSGP). The NSGP provides 
Federal grant money for nonprofit and faith-based organizations 
through the state in which the organizations are located to 
implement security measures against physical and cyberattacks. 
This bill also increases the amount authorized to be 
appropriated under the NSGP for applicants not located in a 
designated Urban Area by DHS, thereby increasing the overall 
NSGP appropriation for each fiscal year (FY) 2020 through 2024 
from $60 million to $75 million.

              II. Background and the Need for Legislation

    Recent tragic incidents against faith-based institutions 
and nonprofit organizations highlight the need to ensure that 
these entities have the resources necessary to protect their 
communities against violent acts of terrorism. In a February 
2019 Joint Intelligence Bulletin (JIB), the Federal Bureau of 
Investigation (FBI), DHS, and National Counterterrorism Center 
concluded that acts of domestic terrorism are on the rise.\1\ 
The February 2019 JIB noted that since 2017, five incidents 
targeting racial and religious minority groups resulted in 14 
deaths and 12 injuries.\2\ In October 2018, the country 
grappled with mass shootings at the Tree of Life Synagogue in 
Pennsylvania, and a grocery store in Kentucky that killed a 
total of 13 religious and racial minorities.\3\ The JIB 
determined that synagogues, religious and cultural 
institutions, and nonprofit organizations should remain 
vigilant against acts of domestic terrorism.\4\
---------------------------------------------------------------------------
    \1\Joint Intelligence Bulletin (IA-32337-19) (Feb. 22, 2019).
    \2\Id.
    \3\Campbell Robertson, Christopher Mele & Sabrina Tavernise, 11 
Killed in Synagogue Massacre; Suspect Charged With 29 Counts, New York 
Times (Oct. 27, 2018), https://www.nytimes.com/2018/10/27/us/active-
shooter-pittsburgh-synagogue-shooting.html; Laurel Wamsley, Killing of 
2 At Kentucky Supermarket Is Being Investigated As Hate Crime, NPR 
(Oct. 29, 2018 3:28 PM ET), https://www.npr.org/2018/10/29/661834642/
killing-of-2-at-kentucky-supermarket-is-being-investigated-as-hate-
crime.
    \4\Id.
---------------------------------------------------------------------------
    In his prepared statement before the House Committee on 
Appropriations, Subcommittee on Commerce, Justice, Science and 
Related Agencies, Christopher Wray, Director of the FBI, warned 
of the persistent and growing threat posed by domestic 
extremists:

          Domestic extremist movements collectively pose a 
        steady threat of violence . . . to the United States. 
        The FBI is most concerned about lone offender attacks, 
        primarily shootings, as they have served as the 
        dominant mode for lethal domestic extremist violence. 
        We anticipate law enforcement, racial minorities, and 
        the U.S. government will continue to be significant 
        targets for many domestic extremist movements.\5\
---------------------------------------------------------------------------
    \5\FBI, Statement for the Record (Apr. 4, 2019), available at 
https://www.fbi.gov/news/testimony/fbi-budget-request-for-fiscal-year-
2020.

    The NSGP provides resources to nonprofit organizations in 
both areas that qualify for the State Homeland Security Program 
(SHSP), and urban areas that qualify for the Urban Area 
Security Initiative (UASI) program, in order to support 
physical security enhancements to harden against terrorist 
threats.\6\ The SHSP allows eligible states to receive funding 
for nonprofits that are not designated by DHS as Urban Areas.
---------------------------------------------------------------------------
    \6\FEMA, Homeland Security Grant Program, https://www.fema.gov/
homeland-security-grant-program.
---------------------------------------------------------------------------
    For FY 2019, Congress appropriated $60 million for the 
NSGP: $10 million for those that qualify for the SHSP, and $50 
million for those that qualify for the UASI program.\7\ In FY 
2019, only 21 states have UASI jurisdictions that are eligible 
for the NSGP funding.\8\ Accordingly, in FY 2019, $50 million 
of the $60 million in grant funding allocated under NSGP is 
available to jurisdictions in 21 states.
---------------------------------------------------------------------------
    \7\Department of Homeland Security, DHS Announces Funding 
Opportunity for Fiscal Year 2019 Preparedness Grants, (Apr. 12, 2019), 
https://www.dhs.gov/news/2019/04/12/dhs-announces-funding-opportunity-
fiscal-year-2019-preparedness-grants.
    \8\Dep't of Homeland Sec., Notice of Funding Opportunity (2019), 
https://www.fema.gov/media-library-data/1555009440678-
8c53df465068047205697ceb04ce2be2/_2019_NSGP_NOFO_FINAL_508.pdf.
---------------------------------------------------------------------------
    S. 1539, the Protecting Faith-Based and Nonprofit 
Organizations From Terrorism Act of 2019, codifies the NSGP and 
increases the amount authorized to be provided under the SHSP 
from $10 to $25 million, while still authorizing $50 million 
for grants for those that qualify for UASI funding. 
Accordingly, the bill authorizes appropriations for the NSGP to 
$75 million, $15 million over the $60 million that Congress 
appropriated for fiscal year 2019. Codifying the NSGP and 
increasing the individual appropriation for the SHSP ensures 
that nonprofits outside of UASI-eligible areas facing terrorist 
threats will have adequate access to resources.

                        III. Legislative History

    Senator Rob Portman (R-OH) introduced S. 1539, the 
Protecting Faith-Based and Nonprofit Organizations From 
Terrorism Act of 2019, on May 16, 2019, with Senator Gary 
Peters (D-MI). The bill was referred to the Committee on the 
Homeland Security and Governmental Affairs. Senators Rosen (D-
NV), Gillibrand (D-NY), Casey (D-PA), Warren (D-MA), Hassan (D-
NH), Johnson (R-WI), Lankford (R-OK), Blumenthal (D-CT), Tillis 
(R-NC), Menendez (D-CT), and Cardin (D-MD) later joined as 
cosponsors.
    The Committee considered S. 1539 at a business meeting on 
June 19, 2019. The bill was ordered reported favorably by voice 
vote en bloc without amendment. Senators present for the vote 
were Johnson, Portman, Paul, Lankford, Romney, Scott, Enzi, 
Hawley, Peters, Carper, Hassan, Sinema, and Rosen.

        IV. Section-by-Section Analysis of the Bill, as Reported


Section 1. Short title

    This section established that the bill may be cited as the 
``Protecting Faith-Based and Nonprofit Organizations From 
Terrorism Act of 2019.''

Section 2. Nonprofit Security Grant Program

    Section 2 subsection (a) inserts a new Section 2009 into 
the Homeland Security Act of 2002 under subtitle A of title XX.
    New section 2009 subsection (a) defines the term ``eligible 
nonprofit organization'' as one the FEMA Administrator deems at 
risk of a terrorist attack that is exempt from tax and 
described as a 501(c)(3).
    New section 2009 subsection (b) establishes the NSGP. It 
provides that the Administrator of FEMA makes the grants 
available to nonprofit organizations for target hardening and 
preventative measures to combat physical or cyber terrorist 
attacks.
    New section 2009 subsection (c) details what the NSGP may 
be used for. The uses include covering the cost of security 
enhancements and fees for awareness and training.
    New section 2009 subsection (d) states that the FEMA 
Administrator shall make grants available for a period of not 
less than three years.
    New section 2009 subsection (e) mandates that the 
Administrator of FEMA for fiscal years 2020 until 2024 submit a 
report of grant expenditures by each recipient to the Senate 
Committee on Homeland Security and Governmental Affairs and the 
House Committee on Homeland Security.
    New section 2009 subsection (f) authorizes $75,000,000 for 
each fiscal year 2020 until 2024 for the grant program. 
$50,000,000 is given to organizations in high-risk urban areas 
and $25,000,000 for those not in those areas.
    Subsection (b) is a conforming amendment that edits section 
2002(a) of the Homeland Security Act of 2002 in order to add in 
section 2009.
    Subsection (c) is a clerical amendment that updates the 
table of contents in the Homeland Security Act of 2002 in order 
to add in section 2009.

                   V. Evaluation of Regulatory Impact

    Pursuant to the requirements of paragraph 11(b) of rule 
XXVI of the Standing Rules of the Senate, the Committee has 
considered the regulatory impact of this bill and determined 
that the bill will have no regulatory impact within the meaning 
of the rules. The Committee agrees with the Congressional 
Budget Office's statement that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act (UMRA) and would impose no costs 
on state, local, or tribal governments.

             VI. Congressional Budget Office Cost Estimate

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, July 9, 2019.
Hon. Ron Johnson,
Chairman Committee on Homeland Security and Governmental Affairs, U.S. 
        Senate, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for S. 1539, the Protecting 
Faith-Based and Nonprofit Organizations from Terrorism Act of 
2019.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Jon Sperl.
            Sincerely,
                                         Phillip L. Swagel,
                                                          Director.
    Enclosure.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    

    S. 1539 would authorize the appropriation of $75 million 
annually from 2020 through 2024 for the Federal Emergency 
Management Agency (FEMA) to provide grants to certain nonprofit 
organizations to enhance security measures aimed at guarding 
against terrorist attacks. Those measures would include 
hardening potential targets with physical security and covering 
the costs of security training for employees. Under the bill, 
states would administer the grants to the nonprofit 
organizations. The bill also would require FEMA to report 
annually to the Congress about the spending of funds provided 
to recipients.
    FEMA currently administers the Nonprofit Security Grant 
Program and in 2018 allocated funds totaling $60 million to 
make grants under that program.
    Based on historical spending patterns for the grants made 
under that program, CBO estimates implementing the bill would 
cost $166 million over the 2020-2024 period and $202million 
after 2024, assuming appropriation of the authorized amounts.
    The costs of the legislation (detailed in Table 1) fall 
within budget function 450 (community and regional 
development).

                TABLE 1.--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER S. 1539
----------------------------------------------------------------------------------------------------------------
                                                              By fiscal year, millions of dollars--
                                                ----------------------------------------------------------------
                                                   2019     2020     2021     2022     2023     2024   2019-2024
----------------------------------------------------------------------------------------------------------------
Estimated Authorization........................        0       75       75       75       75       75       375
Estimated Outlays..............................        0        5       17       31       49       64       166
----------------------------------------------------------------------------------------------------------------

    On July 9, 2019, CBO transmitted a cost estimate for H.R. 
2476, the Securing American Non-Profit Organizations Against 
Terrorism Act of 2019, as passed by the House of 
Representatives on June 10, 2019. The two pieces of legislation 
are similar and CBO's estimates of their costs are the same.
    The CBO staff contact for this estimate is Jon Sperl. The 
estimate was reviewed by H. Samuel Papenfuss, Deputy Assistant 
Director for Budget Analysis.

       VII. Changes in Existing Law Made by the Bill, as Reported

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill, as reported, are shown as follows: (existing law 
proposed to be omitted is enclosed in brackets, new matter is 
printed in italic, and existing law in which no change is 
proposed is shown in roman:

HOMELAND SECURITY ACT OF 2002

           *       *       *       *       *       *       *


SEC. 1. SHORT TITLE; TABLE OF CONTENTS.

           *       *       *       *       *       *       *


Sec. 2008. Use of Funds.
Sec. 2009. Nonprofit security grant program.

           *       *       *       *       *       *       *


TITLE XX--HOMELAND SECURITY GRANTS

           *       *       *       *       *       *       *


SEC. 2002. HOMELAND SECURITY GRANT PROGRAMS.

    (a) Grants authorized.--The Secretary, through the 
Administrator, may award grants under [sections 2003 and 2004] 
sections 2003, 2004, and 2009 to State, local, and tribal 
governments.

           *       *       *       *       *       *       *


SEC. 2009. NONPROFIT SECURITY GRANT PROGRAM.

    (a) Definition.--In this section, the term ``eligible 
nonprofit organization'' means an organization that is--
          (1) described in section 501(c)(3) of the Internal 
        Revenue Code of 1986 and exempt from tax under section 
        501(a) of such Code; and
          (2) determined to be at risk of a terrorist attack by 
        the Administrator.
    (b) Establishment.--There is established in the Department 
a program to be known as the ``Nonprofit Security Grant 
Program'', under which the Secretary, acting through the 
Administrator, shall make grants to eligible nonprofit 
organizations, through the State in which such organizations 
are located, for target hardening and other security 
enhancements to protect against terrorist attacks.
    (c) Permitted Uses.--The recipient of a grant under this 
section may use such grant for any of the following uses:
          (1) Target hardening activities, including physical 
        security enhancement equipment and inspection and 
        screening systems.
          (2) Fees for security training relating to physical 
        security and cybersecurity, target hardening, terrorism 
        awareness, and employee awareness.
          (3) Any other appropriate activity, including 
        cybersecurity resilience activities, as determined by 
        the Administrator.
    (d) Period of Performance.--The Administrator shall make 
funds provided under this section available for use by a 
recipient of a grant for a period of not less than 36 months.
    (e) Report.--The Administrator shall annually for each of 
fiscal years 2020 through 2024 submit to the Committee on 
Homeland Security and Governmental Affairs of the Senate and 
the Committee on Homeland Security of the House of 
Representatives a report containing information on the 
expenditure by each recipient of grant funds provided under 
this section.
    (f) Authorization of Appropriations.--
          (1) In general. There is authorized to be 
        appropriated $75,000,000 for each of fiscal years 2020 
        through 2024 to carry out this section.
          (2) Specification.--Of the amounts authorized to be 
        appropriated pursuant to paragraph (1)--
                  (A) $50,000,000 is authorized for eligible 
                nonprofit organizations located in 
                jurisdictions that receive funding under 
                section 2003; and
                  (B) $25,000,000 is authorized for eligible 
                nonprofit organizations located in 
                jurisdictions not receiving funding under 
                section 2003.

           *       *       *       *       *       *       *


                                  [all]