I 

113TH CONGRESS 

1ST SESSION H. R. 1563 

To enable concrete masonry products manufacturers to establish, finance, 

and carry out a coordinated program of research, education, and promotion to improve, maintain, and develop markets for concrete masonry 

products. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 15, 2013 

Mr. GUTHRIE (for himself and Ms. CASTOR of Florida) introduced the 

following bill; which was referred to the Committee on Energy and Commerce 

A BILL 

To enable concrete masonry products manufacturers to establish, finance, and carry out a coordinated program of 

research, education, and promotion to improve, maintain, 

and develop markets for concrete masonry products. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Concrete Masonry 

5 Products Research, Education, and Promotion Act of 

6 2013’’. 

7 SEC. 2. FINDINGS AND DECLARATION OF POLICY. 

8 (a) FINDINGS.—Congress finds the following: 


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1 (1) The production of concrete masonry prod2 ucts plays a significant role in the economy of the 

3 United States. 

4 (2) Concrete masonry products are produced by 

5 hundreds of concrete manufacturers and utilized 

6 throughout the United States and foreign countries. 

7 (3) Concrete masonry products move in the 

8 channels of interstate and foreign commerce, and 

9 concrete masonry products that do not move in such 

10 channels of commerce directly burden or affect inter11 state commerce of concrete masonry products. 

12 (4) The concrete masonry products industry 

13 employs thousands of workers and positively impacts 

14 economic stability throughout the United States. 

15 (5) The maintenance and expansion of existing 

16 markets for concrete masonry products and the de17 velopment of new markets is vital to the welfare of 

18 concrete manufacturers in the United States and 

19 those concerned with marketing and using concrete 

20 masonry products as well as the general economic 

21 welfare of the United States. 

22 (6) The concrete masonry products industry 

23 plays a vital role in providing safe, environmentally 

24 sustainable, and economical construction for citizens 

25 of the United States and abroad. 


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1 (7) Concrete masonry products are used for the 

2 construction of structures that protect and provide 

3 shelter for citizens during disasters (earthquakes, 

4 floods, hurricanes, tornados, fire, et cetera). 

5 (8) Concrete masonry structures provide energy 

6 efficiencies to reduce American energy demands. 

7 (9) Concrete masonry provides for durable 

8 structures that support sustainability objectives, re9 ducing long-term demands on natural resources. 

10 (10) Concrete masonry products are made 

11 using locally available resources throughout the 

12 United States, reducing transportation and infra13 structure demands. 

14 (11) Concrete masonry products are used to 

15 support the construction of durable and cost-effi16 cient, low-income housing. 

17 (b) PURPOSE.—The purpose of this Act is to author18 ize the establishment of an orderly program for devel19 oping, financing, and carrying out an effective, contin20 uous, and coordinated program of research, education, and 

21 promotion, including funds for marketing and market re22 search activities, that is designed to— 

23 (1) strengthen the position of the concrete ma24 sonry products industry in the domestic market25 place; 


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1 (2) maintain, develop, and expand markets and 

2 uses for concrete masonry products in the domestic 

3 and foreign marketplaces; and 

4 (3) promote the use of concrete masonry prod5 ucts in environmentally sustainable construction and 

6 building. 

7 (c) LIMITATION.—Nothing in this Act may be con8 strued to provide for the control of production or otherwise 

9 limit the right of any person to manufacture concrete ma10 sonry products. 

11 SEC. 3. DEFINITIONS. 

12 For the purposes of this Act: 

13 (a) BLOCK MACHINE.—The term ‘‘block machine’’ 

14 means a piece of equipment that utilizes vibration and 

15 compaction to form concrete masonry products. 

16 (b) BOARD.—The term ‘‘Board’’ means the Concrete 

17 Masonry Products Board established under section 5. 

18 (c) CAVITY.—The term ‘‘cavity’’ means the open 

19 space in the mold of a block machine capable of forming 

20 a single concrete masonry unit having nominal plan di21 mensions of 8 inches by 16 inches. 

22 (d) COMMERCE.—The term ‘‘commerce’’ includes 

23 interstate, foreign, and intrastate commerce. 

24 (e) CONCRETE MASONRY PRODUCTS.—The term 

25 ‘‘concrete masonry products’’ refers to a broader class of 


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1 products, including concrete masonry units as well as 

2 hardscape products such as concrete pavers and segmental 

3 retaining wall units, manufactured on a block machine 

4 using dry-cast concrete. 

5 (f) CONCRETE MASONRY UNIT.—The term ‘‘concrete 

6 masonry unit’’ means a concrete masonry product that is 

7 a manmade masonry unit having an actual width of 3 

8 inches or greater and manufactured from dry-cast con9 crete using a block machine. Such term includes concrete 

10 block and related concrete units used in masonry applica11 tions. 

12 (g) DEPARTMENT.—The term ‘‘Department’’ means 

13 the Department of Commerce. 

14 (h) DRY-CAST CONCRETE.—The term ‘‘dry-cast con15 crete’’ means a composite material that is composed essen16 tially of aggregates embedded in a binding medium com17 posed of a mixture of cementitious materials (including 

18 hydraulic cement, pozzolans, or other cementitious mate19 rials) and water of such a consistency to maintain its 

20 shape after forming in a block machine. 

21 (i) EDUCATION.—The term ‘‘education’’ means pro22 grams that will educate or communicate the benefits of 

23 concrete masonry products in safe and environmentally 

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1 formation and programs designed to generate increased 

2 demand for commercial, residential, multi-family, and in3 stitutional projects using concrete masonry products and 

4 to generally enhance the image of concrete masonry prod5 ucts. 

6 (j) MACHINE CAVITIES.—The term ‘‘machine cav7 ities’’ means the cavities with which a block machine could 

8 be equipped. 

9 (k) MACHINE CAVITIES IN OPERATION.—The term 

10 ‘‘machine cavities in operation’’ means those machine cav11 ities associated with a block machine that have produced 

12 concrete masonry units within the last 6 months of the 

13 date set for determining eligibility and is fully operable 

14 and capable of producing concrete masonry units. 

15 (l) MASONRY UNIT.—The term ‘‘masonry unit’’ 

16 means a noncombustible building product intended to be 

17 laid by hand or joined using mortar, grout, surface bond18 ing, post-tensioning or some combination of these meth19 ods. 

20 (m) MANUFACTURER.—The term ‘‘manufacturer’’ 

21 means any person engaged in the manufacturing of com22 mercial concrete masonry products. 

23 (n) ORDER.—The term ‘‘order’’ means an order 

24 issued under section 4. 


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1 (o) PERSON.—The term ‘‘person’’ means any indi2 vidual, group of individuals, partnership, corporation, as3 sociation, cooperative, or any other entity. 

4 (p) PROMOTION.—The term ‘‘promotion’’ means any 

5 action, including paid advertising, to advance the image 

6 and desirability of concrete masonry products with the ex7 press intent of improving the competitive position and 

8 stimulating sales of concrete masonry products in the mar9 ketplace. 

10 (q) RESEARCH.—The term ‘‘research’’ means studies 

11 testing the effectiveness of market development and pro12 motion efforts, studies relating to the improvement of con13 crete masonry products and new product development, and 

14 studies documenting the performance of concrete ma15 sonry. 

16 (r) SECRETARY.—The term ‘‘Secretary’’ means the 

17 Secretary of Commerce. 

18 (s) UNITED STATES.—The term ‘‘United States’’ 

19 means the several States and the District of Columbia. 

20 SEC. 4. ISSUANCE OF ORDERS. 

21 (a) IN GENERAL.— 

22 (1) ISSUANCE.—The Secretary, subject to the 

23 procedures provided in subsection (b), shall issue or24 ders under this Act applicable to manufacturers of 

25 concrete masonry products. 


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1 (2) SCOPE.—Any order shall be national in 

2 scope. 

3 (3) ONE ORDER.—Not more than one order 

4 shall be in effect at any one time. 

5 (b) PROCEDURES.— 

6 (1) DEVELOPMENT OR RECEIPT OF PROPOSED

7 ORDER.—A proposed order with respect to concrete 

8 masonry products may be— 

9 (A) prepared by the Secretary at any time; 

10 or 

11 (B) requested by or submitted to the Sec12 retary by— 

13 (i) an existing national organization of 

14 concrete masonry product manufacturers; 

15 or 

16 (ii) any person that may be affected 

17 by the issuance of an order with respect to 

18 concrete masonry products. 

19 (2) PUBLICATION OF PROPOSED ORDER.—Not 

20 later than 60 days after receiving a proposed order 

21 or a request for a proposed order in accordance with 

22 subparagraph (B) of paragraph (1), the Secretary 

23 shall publish a proposed order in the Federal Reg24 ister and give 30 days notice and opportunity for 

25 public comment on the proposed order. 


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1 (3) ISSUANCE OF ORDER.— 

2 (A) IN GENERAL.—After notice and oppor3 tunity for public comment are provided in ac4 cordance with paragraph (2), the Secretary 

5 shall issue the order, taking into consideration 

6 the comments received and including in the 

7 order such provisions as are necessary to ensure 

8 that the order is in conformity with this Act. 

9 (B) EFFECTIVE DATE.—The order shall be 

10 issued and become effective only after an af11 firmative vote in a referendum as provided in 

12 section 7, but not later than 120 days after 

13 publication of the proposed order. 

14 (c) AMENDMENTS.—The Secretary may, from time to 

15 time, amend an order. The provisions of this Act applica16 ble to an order shall be applicable to any amendment to 

17 an order. 

18 SEC. 5. REQUIRED TERMS IN ORDERS. 

19 (a) IN GENERAL.—Any order issued under this Act 

20 shall contain the terms and provisions specified in this sec21 tion. 

22 (b) CONCRETE MASONRY PRODUCTS BOARD.— 

23 (1) ESTABLISHMENT AND MEMBERSHIP.— 

24 (A) ESTABLISHMENT.—The order shall 

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1 sonry Products Board to carry out a program 

2 of generic promotion, research, and information 

3 regarding concrete masonry products. 

4 (B) MEMBERSHIP.— 

5 (i) NUMBER OF MEMBERS.—The 

6 board shall consist of not more than 25 

7 members. 

8 (ii) APPOINTMENT.—The members of 

9 the Board shall be appointed by the Sec10 retary from nominations submitted as pro11 vided in this subsection. 

12 (iii) COMPOSITION.—The Board shall 

13 consist of manufacturers. 

14 (2) DISTRIBUTION OF APPOINTMENTS.— 

15 (A) GEOGRAPHICAL REPRESENTATION.— 

16 To ensure fair and equitable representation of 

17 the concrete masonry products industry, the 

18 composition of the Board shall reflect the geo19 graphical distribution of the manufacture of 

20 concrete masonry products in the United States 

21 and the types of concrete masonry products 

22 manufactured. 

23 (B) ADJUSTMENT IN BOARD REPRESENTA24 TION.—Three years after the assessment of 

25 concrete masonry products commences pursuant 


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1 to an order, and at the end of each 3-year pe2 riod thereafter, the Board, subject to the review 

3 and approval of the Secretary, shall, if war4 ranted, recommend to the Secretary the re5 apportionment of the Board membership to re6 flect changes in the geographical distribution of 

7 the manufacture of concrete masonry products 

8 and the types of concrete masonry products 

9 manufactured. 

10 (3) NOMINATIONS PROCESS.—The order shall 

11 provide the following: 

12 (A) NUMBER OF NOMINATIONS.—Two 

13 nominees shall be submitted for each appoint14 ment to the Board. 

15 (B) PROCEDURE.—Nominations for each 

16 appointment of a manufacturer shall be made 

17 by manufacturers in accordance with proce18 dures specified in the order. 

19 (C) FAILURE TO NOMINATE.—In any case 

20 in which manufacturers fail to nominate indi21 viduals for an appointment to the Board, the 

22 Secretary may appoint an individual to fill the 

23 vacancy on a basis provided in the order or 

24 other regulations of the Secretary. 


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1 (D) FAILURE TO APPOINT.—If the Sec2 retary fails to make an appointment to the 

3 Board within 30 days of receiving nominations 

4 for such appointment, the first nominee for 

5 such appointment shall be deemed appointed. 

6 (4) ALTERNATES.—The order shall provide for 

7 the selection of alternate members of the Board by 

8 the Secretary in accordance with procedures speci9 fied in the order. 

10 (5) TERMS.— 

11 (A) IN GENERAL.—The members and any 

12 alternates of the Board shall each serve for a 

13 term of 3 years, except that members and any 

14 alternates initially appointed to the Board shall 

15 serve for terms of not more than 2, 3, and 4 

16 years, as specified by the order. 

17 (B) LIMITATION ON CONSECUTIVE

18 TERMS.—A member or alternate may serve not 

19 more than 2 consecutive terms. 

20 (C) CONTINUATION OF TERM.—Notwith21 standing subparagraph (B), each member or al22 ternate shall continue to serve until a successor 

23 is appointed by the Secretary. 

24 (D) VACANCIES.—A vacancy arising before 

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1 bent member or alternate of the Board shall be 

2 filled in a manner provided for in the order. 

3 (6) DISQUALIFICATION FROM BOARD SERV4 ICE.—The order shall provide that if a member or 

5 alternate of the Board who was appointed as a man6 ufacturer ceases to qualify as a manufacturer, such 

7 member or alternate shall be disqualified from serv8 ing on the Board. 

9 (7) COMPENSATION.— 

10 (A) IN GENERAL.—Members and any al11 ternates of the Board shall serve without com12 pensation. 

13 (B) TRAVEL EXPENSES.—If approved by 

14 the Board, members or alternates shall be reim15 bursed for reasonable travel expenses, which 

16 may include per diem allowance or actual sub17 sistence incurred while away from their homes 

18 or regular places of business in the performance 

19 of services for the Board. 

20 (c) POWERS AND DUTIES OF THE BOARD.—The 

21 order shall specify the powers and duties of the Board, 

22 which shall include the power and duty— 

23 (1) to administer the order in accordance with 

24 its terms and conditions and to collect assessments; 


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1 (2) to develop and recommend to the Secretary 

2 for approval such bylaws as may be necessary for 

3 the functioning of the board and such rules as may 

4 be necessary to administer the order, including ac5 tivities authorized to be carried out under the order; 

6 (3) to meet, organize, and select from among 

7 members of the Board a chairperson, other officers, 

8 and committees and subcommittees, as the Board 

9 determines appropriate; 

10 (4) to establish regional organizations or com11 mittees to administer regional initiatives; 

12 (5) to establish working committees of persons 

13 other than Board members; 

14 (6) to employ such persons, other than the 

15 members, as the board considers necessary, and to 

16 determine the compensation and specify the duties 

17 of the persons; 

18 (7) to prepare and submit for the approval of 

19 the Secretary, before the beginning of each fiscal 

20 year, rates of assessment under section 6 and an an21 nual budget of the anticipated expenses to be in22 curred in the administration of the order, including 

23 the probable cost of each promotion, research, and 

24 information activity proposed to be developed or car25 ried out by the Board; 


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1 (8) to borrow funds necessary for the startup 

2 expenses of the order; 

3 (9) to carry out research, education, and pro4 motion programs and projects, and to pay the costs 

5 of such programs and projects with assessments col6 lected under section 6; 

7 (10) subject to subsection (e), to enter into con8 tracts or agreements to develop and carry out pro9 grams or projects of research, education, and pro10 motion relating to concrete masonry products; 

11 (11) to keep minutes, books, and records that 

12 reflect the actions and transactions of the Board, 

13 and promptly report minutes of each Board meeting 

14 to the Secretary; 

15 (12) to receive, investigate, and report to the 

16 Secretary complaints of violations of the order; 

17 (13) to furnish the Secretary with such infor18 mation as the Secretary may request; 

19 (14) to recommend to the Secretary such 

20 amendments to the order as the Board considers ap21 propriate; and 

22 (15) to provide the Secretary with advance no23 tice of meetings. 

24 (d) PROGRAMS AND PROJECTS; BUDGETS; EX25 PENSES.— 


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1 (1) PROGRAMS AND PROJECTS.—The order 

2 shall require the Board to submit to the Secretary 

3 for approval any program or project of research, 

4 education, or promotion. 

5 (2) BUDGETS.— 

6 (A) SUBMISSION.—The order shall require 

7 the Board to submit to the Secretary for ap8 proval a budget of the anticipated expenses and 

9 disbursements of the Board in the implementa10 tion of the order, including the projected costs 

11 of concrete masonry products research, edu12 cation, and promotion programs and projects. 

13 (B) TIMING.—The budget shall be sub14 mitted before the beginning of a fiscal year and 

15 as frequently as may be necessary after the be16 ginning of the fiscal year. 

17 (C) APPROVAL.—If the Secretary fails to 

18 approve or reject a budget within 30 days of re19 ceipt, such budget shall be deemed approved. 

20 (3) ADMINISTRATIVE EXPENSES.— 

21 (A) INCURRING EXPENSES.—A board may 

22 incur the expenses described in paragraph (2) 

23 and other expenses for the administration, 

24 maintenance, and functioning of the Board as 

25 authorized by the Secretary. 


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1 (B) PAYMENT OF EXPENSES.—Expenses 

2 incurred under subparagraph (A) shall be paid 

3 by the Board using assessments collected under 

4 section 6, earnings obtained from assessments, 

5 and other income of the Board. Any funds bor6 rowed by the Board shall be expended only for 

7 startup costs and capital outlays. 

8 (C) LIMITATION ON SPENDING.—For fiscal 

9 years beginning 3 or more years after the date 

10 of the establishment of the Board, the Board 

11 may not expend for administration (except for 

12 reimbursement to the Secretary required under 

13 subparagraph (D)), maintenance, and func14 tioning of the Board in a fiscal year an amount 

15 that exceeds 10 percent of the assessment and 

16 other income received by the Board for the fis17 cal year. 

18 (D) REIMBURSEMENT OF SECRETARY.— 

19 The order shall require that the Secretary be 

20 reimbursed from assessments for all expenses 

21 incurred by the Secretary in the implementa22 tion, administration, and supervision of the 

23 order, including all referenda costs incurred in 

24 connection with the order. 

25 (e) CONTRACTS AND AGREEMENTS.— 


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1 (1) IN GENERAL.—The order shall provide that, 

2 with the approval of the Secretary, the Board may— 

3 (A) enter into contracts and agreements to 

4 carry programs and projects of research, edu5 cation, and promotion activities relating to con6 crete masonry products, including contracts and 

7 agreements with manufacturer associations or 

8 other entities as considered appropriate by the 

9 Secretary; 

10 (B) enter into contracts and agreements 

11 for administrative services; and 

12 (C) pay the cost of approved research, edu13 cation, and promotion programs and projects 

14 using assessments collected under section 6, 

15 earnings obtained from assessments, and other 

16 income of the Board. 

17 (2) REQUIREMENTS.—Each contract or agree18 ment shall provide that any person who enters into 

19 the contract or agreement with the Board shall— 

20 (A) develop and submit to the Board a 

21 proposed activity together with a budget that 

22 specifies the cost to be incurred to carry out the 

23 activity; 

24 (B) keep accurate records of all of trans25 actions relating to the contract or agreement; 


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1 (C) account for funds received and ex2 pended in connection with the contract or 

3 agreement; 

4 (D) make periodic reports to the Board of 

5 activities conducted under the contract or 

6 agreement; and 

7 (E) make such other reports as the Board 

8 or the Secretary considers relevant. 

9 (3) FAILURE TO APPROVE.—If the Secretary 

10 fails to approve or reject a contract or agreement 

11 entered into under paragraph (1) within 30 days of 

12 receipt, the contract or agreement shall be deemed 

13 approved. 

14 (f) BOOKS AND RECORDS OF BOARD.— 

15 (1) IN GENERAL.—The order shall require the 

16 Board to— 

17 (A) maintain such books and records 

18 (which shall be available to the Secretary for in19 spection and audit) as the Secretary may re20 quire; 

21 (B) collect and submit to the Secretary, at 

22 any time the Secretary may specify, any infor23 mation the Secretary may request; and 


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1 (C) account for the receipt and disburse2 ment of all funds in the possession, or under 

3 the control, of the Board. 

4 (2) AUDITS.—The order shall require the Board 

5 to have— 

6 (A) the books and records of the Board au7 dited by an independent auditor at the end of 

8 each fiscal year; and 

9 (B) a report of the audit submitted di10 rectly to the Secretary. 

11 (g) PROHIBITED ACTIVITIES.— 

12 (1) IN GENERAL.—Subject to paragraph (2), 

13 the Board shall not engage in any action to, nor 

14 shall any funds received by the Board under this Act 

15 be used to— 

16 (A) influence legislation or governmental 

17 action; 

18 (B) engage in an action that would be a 

19 conflict of interest; or 

20 (C) engage in advertising that is false or 

21 misleading. 

22 (2) EXCEPTIONS.—Paragraph (1) does not pre23 clude— 

24 (A) the development and recommendation 

25 of amendments to the order; 


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1 (B) the communication to appropriate gov2 ernment officials of information relating to the 

3 conduct, implementation, or results of research, 

4 education, and promotion activities under the 

5 order; or 

6 (C) any action designed to market concrete 

7 masonry products directly to a foreign govern8 ment or political subdivision of a foreign gov9 ernment. 

10 (h) PERIODIC EVALUATION.—The order shall require 

11 the Board to provide for the independent evaluation of all 

12 research, education, and promotion activities undertaken 

13 under the order. 

14 (i) BOOKS AND RECORDS OF PERSONS COVERED BY

15 ORDER.— 

16 (1) IN GENERAL.—The order shall require that 

17 manufacturers of concrete masonry products shall— 

18 (A) maintain records sufficient to ensure 

19 compliance with the order and regulations; 

20 (B) submit to the Board any information 

21 required by the Board to carry out its respon22 sibilities; and 

23 (C) make the records described in subpara24 graph (A) available, during normal business 

25 hours, for inspection by employees or agents of 


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1 the Board or the Department, including any 

2 records necessary to verify information required 

3 under subparagraph (B). 

4 (2) TIME REQUIREMENT.—Any record required 

5 to be maintained under paragraph (1) shall be main6 tained for such time period as the Secretary may 

7 prescribe. 

8 (3) CONFIDENTIALITY OF INFORMATION.— 

9 (A) IN GENERAL.—Except as otherwise 

10 provided in this Act, all information obtained 

11 under paragraph (1) or as part of a referendum 

12 under section 7 shall be kept confidential by all 

13 officers, employees, and agents of the Depart14 ment and of the Board. 

15 (B) SUITS AND HEARINGS.—Information 

16 referred to in subparagraph (A) may be dis17 closed only if— 

18 (i) the Secretary considers the infor19 mation relevant; and 

20 (ii) the information is revealed in a 

21 judicial proceeding or administrative hear22 ing brought at the direction or on the re23 quest of the Secretary or to which the Sec24 retary or any officer of the Department is 

25 a party. 


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1 (C) GENERAL STATEMENTS AND PUBLICA2 TIONS.—This paragraph does not prohibit— 

3 (i) the issuance of general statements 

4 based on reports or on information relating 

5 to a number of persons subject to an order 

6 if the statements do not identify the infor7 mation furnished by any person; or 

8 (ii) the publication, by direction of the 

9 Secretary, of the name of any person vio10 lating any order and a statement of the 

11 particular provisions of the order violated 

12 by the person. 

13 (D) PENALTY.—Any person who willfully 

14 violates this subsection shall be fined not more 

15 than $5,000, imprisoned not more than 1 year, 

16 or both. 

17 (4) WITHHOLDING INFORMATION.—This sub18 section does not authorize the withholding of infor19 mation from Congress. 

20 SEC. 6. ASSESSMENTS. 

21 (a) ASSESSMENTS.—The order shall provide that as22 sessments shall be paid by manufacturers with respect to 

23 concrete masonry products manufactured and marketed in 

24 the United States. 

25 (b) COLLECTION.— 


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1 (1) IN GENERAL.—Assessments required under 

2 the order shall be remitted by the manufacturer to 

3 the Board in the manner prescribed by the order. 

4 (2) TIMING.—The order shall provide that as5 sessments required under the order shall be remitted 

6 to the Board not less frequently than quarterly. 

7 (3) RECORDS.—As part of the remittance of as8 sessments, manufacturers shall identify the total 

9 amount due in assessments on all sales receipts, in10 voices or other commercial documents of sale as a 

11 result of the sale of concrete masonry units in a 

12 manner as prescribed by the Board to ensure com13 pliance with the order. 

14 (c) ASSESSMENT RATES.—With respect to assess15 ment rates, the order shall contain the following terms: 

16 (1) INITIAL RATE.—The assessment rate on 

17 concrete masonry products shall be $0.01 per con18 crete masonry unit sold. 

19 (2) CHANGES IN THE RATE.— 

20 (A) AUTHORITY TO CHANGE RATE.—The 

21 Board shall have the authority to change the 

22 assessment rate. A two-thirds majority of voting 

23 members of the Board shall be required to ap24 prove a change in the assessment rate. 


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1 (B) LIMITATION ON INCREASES.—An in2 crease or decrease in the assessment rate with 

3 respect to concrete masonry products may not 

4 exceed $0.01 per concrete masonry unit sold. 

5 (C) MAXIMUM RATE.—The assessment 

6 rate shall not be in excess of $0.05 per concrete 

7 masonry unit. 

8 (D) LIMITATION ON FREQUENCY OF

9 CHANGES.—The assessment rate may not be in10 creased or decreased more than once annually. 

11 (d) LATE-PAYMENT AND INTEREST CHARGES.— 

12 (1) IN GENERAL.—Late-payment and interest 

13 charges may be levied on each person subject to the 

14 order who fails to remit an assessment in accordance 

15 with subsection (b). 

16 (2) RATE.—The rate for late-payment and in17 terest charges shall be specified by the Secretary. 

18 (e) INVESTMENT OF ASSESSMENTS.—Pending dis19 bursement of assessments under a budget approved by the 

20 Secretary, a board may invest assessments collected under 

21 this section in— 

22 (1) obligations of the United States or any 

23 agency of the United States; 

24 (2) general obligations of any State or any po25 litical subdivision of a State; 


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1 (3) interest-bearing accounts or certificates of 

2 deposit of financial institutions that are members of 

3 the Federal Reserve System; or 

4 (4) obligations fully guaranteed as to principal 

5 and interest by the United States. 

6 (f) ASSESSMENT FUNDS FOR REGIONAL INITIA7 TIVES.— 

8 (1) IN GENERAL.—The order shall provide that 

9 no less than 50 percent of the assessments (less ad10 ministration expenses) paid by a manufacturer shall 

11 be used to support research, education, and pro12 motion plans and projects in support of the geo13 graphic region of the manufacturer. 

14 (2) GEOGRAPHIC REGIONS.—The order shall 

15 provide for the following geographic regions: 

16 (A) Region I shall comprise Connecticut, 

17 Delaware, Maine, Maryland, Massachusetts, 

18 New Hampshire, New Jersey, New York, Penn19 sylvania, Rhode Island, Vermont, and West Vir20 ginia. 

21 (B) Region II shall comprise Alabama, 

22 Florida, Georgia, Mississippi, North Carolina, 

23 South Carolina, Tennessee, and Virginia. 

24 (C) Region III shall comprise Illinois, Indi25 ana, Iowa, Kentucky, Michigan, Minnesota, NeVerDate Mar 15 2010 02:31 Apr 20, 2013 Jkt 029200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H1563.IH H1563

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1 braska, North Dakota, Ohio, South Dakota, 

2 and Wisconsin. 

3 (D) Region IV shall comprise Arizona, Ar4 kansas, Kansas, Louisiana, Missouri, New Mex5 ico, Oklahoma, and Texas. 

6 (E) Region V shall comprise Alaska, Cali7 fornia, Colorado, Hawaii, Idaho, Montana, Ne8 vada, Oregon, Utah, Washington, and Wyo9 ming. 

10 (3) ADJUSTMENT OF GEOGRAPHIC REGIONS.— 

11 The order shall provide that the Secretary may, 

12 upon recommendation of the Board, modify the com13 position of the geographic regions described in para14 graph (2). 

15 SEC. 7. REFERENDA. 

16 (a) INITIAL REFERENDUM.— 

17 (1) REFERENDUM REQUIRED.—During the 60- 

18 day period immediately preceding the proposed effec19 tive date of the order issued under section 4, the 

20 Secretary shall conduct a referendum among manu21 facturers required to pay assessments under the 

22 order, as provided in section 6. 

23 (2) APPROVAL OF ORDER NEEDED.—The order 

24 shall become effective only if the Secretary deterVerDate Mar 15 2010 02:31 Apr 20, 2013 Jkt 029200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H1563.IH H1563

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1 mines that the order has been approved by a simple 

2 majority of all votes cast in the referendum. 

3 (b) VOTES PERMITTED.— 

4 (1) IN GENERAL.—Each manufacturer eligible 

5 to vote in a referendum conducted under this section 

6 shall be entitled to cast one vote for each machine 

7 cavity in operation that is operated by such manu8 facturer if they satisfy the eligibility requirements as 

9 defined in paragraph (2). 

10 (2) ELIGIBILITY.—For purposes of paragraph 

11 (1), manufacturers shall be considered to be eligible 

12 to vote if they have manufactured concrete masonry 

13 products during a period of at least 180 days prior 

14 to the referendum. 

15 (c) MANNER OF CONDUCTING REFERENDA.— 

16 (1) IN GENERAL.—Referenda conducted pursu17 ant to this section shall be conducted in a manner 

18 determined by the Secretary. 

19 (2) ADVANCE REGISTRATION.—A manufacturer 

20 who chooses to vote in any referendum conducted 

21 under this section shall register with the Secretary 

22 prior to the voting period, after receiving notice from 

23 the Secretary concerning the referendum under 

24 paragraph (4). 


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1 (3) VOTING.—The Secretary shall establish pro2 cedures for voting in any referendum conducted 

3 under this section. The ballots and other information 

4 or reports that reveal or tend to reveal the identity 

5 or vote of voters shall be strictly confidential. 

6 (4) NOTICE.—Not later than 30 days before a 

7 referendum is conducted under this section with re8 spect to an order, the Secretary shall notify all man9 ufacturers, in such a manner as determined by the 

10 Secretary, of the period during which voting in the 

11 referendum will occur. The notice shall explain any 

12 registration and voting procedures established under 

13 this subsection. 

14 (d) SUBSEQUENT REFERENDA.—If an order is ap15 proved in a referendum conducted under subsection (a), 

16 the Secretary shall conduct a subsequent referendum— 

17 (1) at the request of the Board, subject to the 

18 voting requirements of subsections (b) and (c), to 

19 ascertain whether eligible manufacturers favor sus20 pension, termination, or continuance of the order; or 

21 (2) effective beginning on the date that is 5 

22 years after the date of the approval of the order, and 

23 at 5-year intervals thereafter, at the request of 25 

24 percent or more of the number of persons eligible to 

25 vote under subsection (b). 


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1 (e) SUSPENSION OR TERMINATION.—If, as a result 

2 of a referendum conducted under subsection (d), the Sec3 retary determines that suspension or termination of the 

4 order is favored by a simple majority of all votes cast in 

5 the referendum, the Secretary shall— 

6 (1) not later than 180 days after the ref7 erendum, suspend or terminate, as appropriate, col8 lection of assessments under the order; and 

9 (2) suspend or terminate, as appropriate, activi10 ties under the order as soon as practicable and in 

11 an orderly manner. 

12 (f) COSTS OF REFERENDA.—The Board established 

13 under an order with respect to which a referendum is con14 ducted under this section shall reimburse the Secretary 

15 from assessments for any expenses incurred by the Sec16 retary to conduct the referendum. 

17 SEC. 8. PETITION AND REVIEW. 

18 (a) PETITION.— 

19 (1) IN GENERAL.—A person subject to an order 

20 issued under this Act may file with the Secretary a 

21 petition— 

22 (A) stating that the order, any provision of 

23 the order, or any obligation imposed in connec24 tion with the order, is not established in accord25 ance with law; and 


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1 (B) requesting a modification of the order 

2 or an exemption from the order. 

3 (2) HEARING.—The Secretary shall give the pe4 titioner an opportunity for a hearing on the petition, 

5 in accordance with regulations issued by the Sec6 retary. 

7 (3) RULING.—After the hearing, the Secretary 

8 shall make a ruling on the petition. The ruling shall 

9 be final, subject to review as set forth in subsection 

10 (b). 

11 (4) LIMITATION ON PETITION.—Any petition 

12 filed under this subsection challenging an order, any 

13 provision of the order, or any obligation imposed in 

14 connection with the order, shall be filed within 2 

15 years after the effective date of the order, provision, 

16 or obligation subject to challenge in the petition. 

17 (b) REVIEW.— 

18 (1) COMMENCEMENT OF ACTION.—The district 

19 courts of the United States in any district in which 

20 a person who is a petitioner under subsection (a) re21 sides or conducts business shall have jurisdiction to 

22 review the ruling of the Secretary on the petition of 

23 the person, if a complaint requesting the review is 

24 filed no later than 20 days after the date of the 

25 entry of the ruling by the Secretary. 


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1 (2) PROCESS.—Service of process in pro2 ceedings under this subsection shall be conducted in 

3 accordance with the Federal Rules of Civil Proce4 dure. 

5 (3) REMANDS.—If the court in a proceeding 

6 under this subsection determines that the ruling of 

7 the Secretary on the petition of the person is not in 

8 accordance with law, the court shall remand the 

9 matter to the Secretary with directions— 

10 (A) to make such ruling as the court shall 

11 determine to be in accordance with law; or 

12 (B) to take such further action as, in the 

13 opinion the court, the law requires. 

14 (c) ENFORCEMENT.—The pendency of proceedings 

15 instituted under this section shall not impede, hinder, or 

16 delay the Attorney General or the Secretary from obtain17 ing relief under section 9. 

18 SEC. 9. ENFORCEMENT. 

19 (a) JURISDICTION.—A district court of the United 

20 States shall have jurisdiction to enforce, and to prevent 

21 and restrain any person from violating, this Act or an 

22 order or regulation issued by the Secretary under this Act. 

23 (b) REFERRAL TO ATTORNEY GENERAL.—A civil ac24 tion authorized to be brought under this section shall be 


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1 referred to the Attorney General of the United States for 

2 appropriate action. 

3 (c) CIVIL PENALTIES AND ORDERS.— 

4 (1) CIVIL PENALTIES.—A person who willfully 

5 violates an order or regulation issued by the Sec6 retary under this Act may be assessed by the Sec7 retary a civil penalty of not more than $5,000 for 

8 each violation. 

9 (2) SEPARATE OFFENSE.—Each violation and 

10 each day during which there is a failure to comply 

11 with an order or regulation issued by the Secretary 

12 shall be considered to be a separate offense. 

13 (3) CEASE-AND-DESIST ORDERS.—In addition 

14 to, or in lieu of, a civil penalty, the Secretary may 

15 issue an order requiring a person to cease and desist 

16 from violating the order or regulation. 

17 (4) NOTICE AND HEARING.—No order assessing 

18 a penalty or cease-and-desist order may be issued by 

19 the Secretary under this subsection unless the Sec20 retary provides notice and an opportunity for a hear21 ing on the record with respect to the violation. 

22 (5) FINALITY.—An order assessing a penalty or 

23 a cease-and-desist order issued under this subsection 

24 by the Secretary shall be final and conclusive unless 

25 the person against whom the order is issued files an 


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1 appeal from the order with the appropriate district 

2 court of the United States, as provided in subsection 

3 (d). 

4 (d) ADDITIONAL REMEDIES.—The remedies provided 

5 in this Act shall be in addition to, and not exclusive of, 

6 other remedies that may be available. 

7 SEC. 10. INVESTIGATION AND POWER TO SUBPOENA. 

8 (a) INVESTIGATIONS.—The Secretary may conduct 

9 such investigations as the Secretary considers necessary 

10 for the effective administration of this Act, or to determine 

11 whether any person has engaged or is engaging in any 

12 act that constitutes a violation of this Act or any order 

13 or regulation issued under this Act. 

14 (b) SUBPOENAS, OATHS, AND AFFIRMATIONS.— 

15 (1) INVESTIGATIONS.—For the purpose of con16 ducting an investigation under subsection (a), the 

17 Secretary may administer oaths and affirmations, 

18 subpoena witnesses, compel the attendance of wit19 nesses, take evidence, and require the production of 

20 any records that are relevant to the inquiry. The 

21 production of the records may be required from any 

22 place in the United States. 

23 (2) ADMINISTRATIVE HEARINGS.—For the pur24 pose of an administrative hearing held under section 

25 8(a)(2) or section 9(c)(4), the presiding officer may 


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1 administer oaths and affirmations, subpoena wit2 nesses, compel the attendance of witnesses, take evi3 dence, and require the production of any records 

4 that are relevant to the inquiry. The attendance of 

5 witnesses and the production of the records may be 

6 required from any place in the United States. 

7 (c) AID OF COURTS.— 

8 (1) IN GENERAL.—In the case of contumacy by, 

9 or refusal to obey a subpoena issued under sub10 section (b) to, any person, the Secretary may invoke 

11 the aid of any court of the United States within the 

12 jurisdiction of which the investigation or proceeding 

13 is conducted, or where the person resides or con14 ducts business, in order to enforce a subpoena issued 

15 under subsection (b). 

16 (2) ORDER.—The court may issue an order re17 quiring the person referred to in a paragraph (1) to 

18 comply with a subpoena referred to in paragraph 

19 (1). 

20 (3) FAILURE TO OBEY.—Any failure to obey 

21 the order of the court may be punished by the court 

22 as a contempt of court. 

23 (4) PROCESS.—Process in any proceeding 

24 under this subsection may be served in the United 

25 States judicial district in which the person being 


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1 proceeded against resides or conducts business, or 

2 wherever the person may be found. 

3 SEC. 11. SUSPENSION OR TERMINATION. 

4 (a) MANDATORY SUSPENSION OR TERMINATION.— 

5 The Secretary shall suspend or terminate an order or a 

6 provision of an order if the Secretary finds that an order 

7 or provision of an order obstructs or does not tend to ef8 fectuate the purpose of this Act, or if the Secretary deter9 mines that the order or a provision of an order is not fa10 vored by persons voting in a referendum conducted under 

11 section 7. 

12 (b) IMPLEMENTATION OF SUSPENSION OR TERMI13 NATION.—If, as a result of a referendum conducted under 

14 section 7, the Secretary determines that the order is not 

15 approved, the Secretary shall— 

16 (1) not later than 180 days after making the 

17 determination, suspend or terminate, as the case 

18 may be, collection of assessments under the order; 

19 and 

20 (2) as soon as practicable, suspend or termi21 nate, as the case may be, activities under the order 

22 in an orderly manner. 


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1 SEC. 12. CONFIDENTIALITY. 

2 Nothing in this Act shall be construed to require the 

3 Board to disclose information or records under section 552 

4 of title 5, United States Code. 

5 SEC. 13. AMENDMENTS TO ORDERS. 

6 The provisions of this Act applicable to the order 

7 shall be applicable to any amendment to the order, except 

8 that section 8 shall not apply to an amendment. 

9 SEC. 14. EFFECT ON OTHER LAWS. 

10 This Act shall not affect or preempt any other Fed11 eral or State law authorizing research, education, and pro12 motion relating to concrete masonry products. 

13 SEC. 15. REGULATIONS. 

14 The Secretary may issue such regulations as may be 

15 necessary to carry out this Act and the power vested in 

16 the Secretary under this Act. 

17 SEC. 16. LIMITATION ON EXPENDITURES FOR ADMINISTRA18 TIVE EXPENSES. 

19 Funds appropriated to carry out this Act may not 

20 be used for the payment of the expenses or expenditures 

21 of the Board in administering the order. 

Æ 


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