59–006 

114TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 114–671 

CONCRETE MASONRY PRODUCTS RESEARCH, EDUCATION, 

AND PROMOTION ACT OF 2015 

JULY 8, 2016.—Committed to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

Mr. UPTON, from the Committee on Energy and Commerce, 

submitted the following 

R E P O R T 

[To accompany H.R. 985] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Energy and Commerce, to whom was referred 

the bill (H.R. 985) 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, having considered 

the same, report favorably thereon with an amendment and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Purpose and Summary ............................................................................................ 11 

Background and Need for Legislation .................................................................... 12 

Hearings ................................................................................................................... 12 

Committee Consideration ........................................................................................ 13 

Committee Votes ...................................................................................................... 13 

Committee Oversight Findings ............................................................................... 13 

Statement of General Performance Goals and Objectives .................................... 13 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 13 

Earmark, Limited Tax Benefits, and Limited Tariff Benefits ............................. 13 

Committee Cost Estimate ....................................................................................... 13 

Congressional Budget Office Estimate ................................................................... 14 

Federal Mandates Statement ................................................................................. 17 

Duplication of Federal Programs ............................................................................ 17 

Disclosure of Directed Rule Makings ..................................................................... 17 

Advisory Committee Statement .............................................................................. 17 

Applicability to Legislative Branch ........................................................................ 17 

Section-by-Section Analysis of the Legislation ...................................................... 18 

Changes in Existing Law Made by the Bill, as Reported ..................................... 20 


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The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE. 

This Act may be cited as the ‘‘Concrete Masonry Products Research, Education, 

and Promotion Act of 2015’’. 

SEC. 2. DECLARATION OF POLICY. 

(a) PURPOSE.—The purpose of this Act is to authorize the establishment of an orderly program for developing, financing, and carrying out an effective, continuous, 

and coordinated program of research, education, and promotion, including funds for 

marketing and market research activities, that is designed to— 

(1) strengthen the position of the concrete masonry products industry in the 

domestic marketplace; 

(2) maintain, develop, and expand markets and uses for concrete masonry 

products in the domestic marketplace; and 

(3) promote the use of concrete masonry products in construction and building. 

(b) LIMITATION.—Nothing in this Act may be construed to provide for the control 

of production or otherwise limit the right of any person to manufacture concrete masonry products. 

SEC. 3. DEFINITIONS. 

For the purposes of this Act: 

(1) BLOCK MACHINE.—The term ‘‘block machine’’ means a piece of equipment 

that utilizes vibration and compaction to form concrete masonry products. 

(2) BOARD.—The term ‘‘Board’’ means the Concrete Masonry Products Board 

established under section 5. 

(3) CAVITY.—The term ‘‘cavity’’ means the open space in the mold of a block 

machine capable of forming a single concrete masonry unit having nominal plan 

dimensions of 8 inches by 16 inches. 

(4) COMMERCE.—The term ‘‘commerce’’ includes interstate, foreign, and intrastate commerce. 

(5) CONCRETE MASONRY PRODUCTS.—The term ‘‘concrete masonry products’’ 

refers to a broader class of products, including concrete masonry units as well 

as hardscape products such as concrete pavers and segmental retaining wall 

units, manufactured on a block machine using dry-cast concrete. 

(6) CONCRETE MASONRY UNIT.—The term ‘‘concrete masonry unit’’ means a 

concrete masonry product that is a manmade masonry unit having an actual 

width of 3 inches or greater and manufactured from dry-cast concrete using a 

block machine. Such term includes concrete block and related concrete units 

used in masonry applications. 

(7) CONFLICT OF INTEREST.—The term ‘‘conflict of interest’’ means, with respect to a member or employee of the Board, a situation in which such member 

or employee has a direct or indirect financial or other interest in a person that 

performs a service for, or enters into a contract with, for anything of economic 

value. 

(8) DEPARTMENT.—The term ‘‘Department’’ means the Department of Commerce. 

(9) DRY-CAST CONCRETE.—The term ‘‘dry-cast concrete’’ means a composite 

material that is composed essentially of aggregates embedded in a binding medium composed of a mixture of cementitious materials (including hydraulic cement, pozzolans, or other cementitious materials) and water of such a consistency to maintain its shape after forming in a block machine. 

(10) EDUCATION.—The term ‘‘education’’ means programs that will educate or 

communicate the benefits of concrete masonry products in safe and environmentally sustainable development, advancements in concrete masonry product 

technology and development, and other information and programs designed to 

generate increased demand for commercial, residential, multi-family, and institutional projects using concrete masonry products and to generally enhance the 

image of concrete masonry products. 

(11) MACHINE CAVITIES.—The term ‘‘machine cavities’’ means the cavities with 

which a block machine could be equipped. 

(12) MACHINE CAVITIES IN OPERATION.—The term ‘‘machine cavities in operation’’ means those machine cavities associated with a block machine that have 

produced concrete masonry units within the last 6 months of the date set for 

determining eligibility and is fully operable and capable of producing concrete 

masonry units. 


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(13) MANUFACTURER.—The term ‘‘manufacturer’’ means any person engaged 

in the manufacturing of commercial concrete masonry products in the United 

States. 

(14) MASONRY UNIT.—The term ‘‘masonry unit’’ means a noncombustible 

building product intended to be laid by hand or joined using mortar, grout, surface bonding, post-tensioning or some combination of these methods. 

(15) ORDER.—The term ‘‘order’’ means an order issued under section 4. 

(16) PERSON.—The term ‘‘person’’ means any individual, group of individuals, 

partnership, corporation, association, cooperative, or any other entity. 

(17) PROMOTION.—The term ‘‘promotion’’ means any action, including paid advertising, to advance the image and desirability of concrete masonry products 

with the express intent of improving the competitive position and stimulating 

sales of concrete masonry products in the marketplace. 

(18) RESEARCH.—The term ‘‘research’’ means studies testing the effectiveness 

of market development and promotion efforts, studies relating to the improvement of concrete masonry products and new product development, and studies 

documenting the performance of concrete masonry. 

(19) SECRETARY.—The term ‘‘Secretary’’ means the Secretary of Commerce. 

(20) UNITED STATES.—The term ‘‘United States’’ means the several States and 

the District of Columbia. 

SEC. 4. ISSUANCE OF ORDERS. 

(a) IN GENERAL.— (1) ISSUANCE.—The Secretary, subject to the procedures provided in subsection (b), shall issue orders under this Act applicable to manufacturers of concrete masonry products. 

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

(3) ONE ORDER.—Not more than one order shall be in effect at any one time. 

(b) PROCEDURES.— (1) DEVELOPMENT OR RECEIPT OF PROPOSED ORDER.—A proposed order with 

respect to the generic research, education, and promotion with regards to concrete masonry products may be— 

(A) proposed by the Secretary at any time; or 

(B) requested by or submitted to the Secretary by— 

(i) an existing national organization of concrete masonry product 

manufacturers; or 

(ii) any person that may be affected by the issuance of an order. 

(2) PUBLICATION OF PROPOSED ORDER.—If the Secretary determines that a 

proposed order received in accordance with paragraph (1)(B) is consistent with 

and will effectuate the purpose of this Act, the Secretary shall publish such proposed order in the Federal Register not later than 90 days after receiving the 

order, and give not less than 30 days notice and opportunity for public comment 

on the proposed order. 

(3) ISSUANCE OF ORDER.— 

(A) IN GENERAL.—After notice and opportunity for public comment are 

provided in accordance with paragraph (2), the Secretary shall issue the 

order, taking into consideration the comments received and including in the 

order such provisions as are necessary to ensure that the order is in conformity with this Act. 

(B) EFFECTIVE DATE.—If there is an affirmative vote in a referendum as 

provided in section 7, the Secretary shall issue the order and such order 

shall be effective not later than 140 days after publication of the proposed 

order. 

(c) AMENDMENTS.—The Secretary may, from time to time, amend an order. The 

provisions of this Act applicable to an order shall be applicable to any amendment 

to an order. 

SEC. 5. REQUIRED TERMS IN ORDERS. 

(a) IN GENERAL.—Any order issued under this Act shall contain the terms and 

provisions specified in this section. 

(b) CONCRETE MASONRY PRODUCTS BOARD.— 

(1) ESTABLISHMENT AND MEMBERSHIP.— 

(A) ESTABLISHMENT.—The order shall provide for the establishment of a 

Concrete Masonry Products Board to carry out a program of generic promotion, research, and education regarding concrete masonry products. 

(B) MEMBERSHIP.— 

(i) NUMBER OF MEMBERS.—The board shall consist of not less than 15 

and not more than 25 members. 

(ii) APPOINTMENT.—The members of the Board shall be appointed by 

the Secretary from nominations submitted as provided in the order. 


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(iii) COMPOSITION.—The Board shall consist of manufacturers. No 

employee of an industry trade organization exempt from tax under 

paragraphs (3) or (6) of section 501(c) of the Internal Revenue Code of 

1986 (26 U.S.C. 501(c)) representing the concrete masonry industry or 

related industries shall serve as a member of the Board and no member 

of the Board may serve concurrently as an officer of the board of directors of a national concrete masonry products industry trade association. 

Only two individuals from any single company or its affiliates may 

serve on the Board at any one time. 

(2) DISTRIBUTION OF APPOINTMENTS.— 

(A) REPRESENTATION.—To ensure fair and equitable representation of the 

concrete masonry products industry, the composition of the Board shall reflect the geographical distribution of the manufacture of concrete masonry 

products in the United States, the types of concrete masonry products manufactured, and the range in size of manufacturers in the United States. 

(B) ADJUSTMENT IN BOARD REPRESENTATION.—Three years after the assessment of concrete masonry products commences pursuant to an order, 

and at the end of each 3-year period thereafter, the Board, subject to the 

review and approval of the Secretary, shall, if warranted, recommend to the 

Secretary the reapportionment of the Board membership to reflect changes 

in the geographical distribution of the manufacture of concrete masonry 

products and the types of concrete masonry products manufactured. 

(3) NOMINATIONS PROCESS.—The Secretary may make appointments from 

nominations by manufacturers pursuant to the method set forth in the order. 

(4) FAILURE TO APPOINT.—If the Secretary fails to make an appointment to 

the Board within 60 days of receiving nominations for such appointment, the 

first nominee for such appointment shall be deemed appointed, unless the Secretary provides reasonable justification for the delay to the Board and to Congress and provides a reasonable date by which approval or disapproval will be 

made. 

(5) ALTERNATES.—The order shall provide for the selection of alternate members of the Board by the Secretary in accordance with procedures specified in 

the order. 

(6) TERMS.— 

(A) IN GENERAL.—The members and any alternates of the Board shall 

each serve for a term of 3 years, except that members and any alternates 

initially appointed to the Board shall serve for terms of not more than 2, 

3, and 4 years, as specified by the order. 

(B) LIMITATION ON CONSECUTIVE TERMS.—A member or an alternate may 

serve not more than 2 consecutive terms. 

(C) CONTINUATION OF TERM.—Notwithstanding subparagraph (B), each 

member or alternate shall continue to serve until a successor is appointed 

by the Secretary. 

(D) VACANCIES.—A vacancy arising before the expiration of a term of office of an incumbent member or alternate of the Board shall be filled in a 

manner provided for in the order. 

(7) DISQUALIFICATION FROM BOARD SERVICE.—The order shall provide that if 

a member or alternate of the Board who was appointed as a manufacturer 

ceases to qualify as a manufacturer, such member or alternate shall be disqualified from serving on the Board. 

(8) COMPENSATION.— 

(A) IN GENERAL.—Members and any alternates of the Board shall serve 

without compensation. 

(B) TRAVEL EXPENSES.—If approved by the Board, members or alternates 

shall be reimbursed for reasonable travel expenses, which may include per 

diem allowance or actual subsistence incurred while away from their homes 

or regular places of business in the performance of services for the Board. 

(c) POWERS AND DUTIES OF THE BOARD.—The order shall specify the powers and 

duties of the Board, including the power and duty— 

(1) to administer the order in accordance with its terms and conditions and 

to collect assessments; 

(2) to develop and recommend to the Secretary for approval such bylaws as 

may be necessary for the functioning of the Board and such rules as may be 

necessary to administer the order, including activities authorized to be carried 

out under the order; 

(3) to meet, organize, and select from among members of the Board a chairperson, other officers, and committees and subcommittees, as the Board determines appropriate; 


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(4) to establish regional organizations or committees to administer regional 

initiatives; 

(5) to establish working committees of persons other than Board members; 

(6) to employ such persons, other than the members, as the board considers 

necessary, and to determine the compensation and specify the duties of the persons; 

(7) to prepare and submit for the approval of the Secretary, before the beginning of each fiscal year, rates of assessment under section 6 and an annual 

budget of the anticipated expenses to be incurred in the administration of the 

order, including the probable cost of each promotion, research, and information 

activity proposed to be developed or carried out by the Board; 

(8) to borrow funds necessary for the startup expenses of the order; 

(9) to carry out generic research, education, and promotion programs and 

projects relating to concrete masonry products, and to pay the costs of such programs and projects with assessments collected under section 6; 

(10) subject to subsection (e), to enter into contracts or agreements to develop 

and carry out programs or projects of research, education, and promotion relating to concrete masonry products; 

(11) to keep minutes, books, and records that reflect the actions and transactions of the Board, and promptly report minutes of each Board meeting to the 

Secretary; 

(12) to receive, investigate, and report to the Secretary complaints of violations of the order; 

(13) to furnish the Secretary with such information as the Secretary may request; 

(14) to recommend to the Secretary such amendments to the order as the 

Board considers appropriate; and 

(15) to provide the Secretary with advance notice of meetings to permit the 

Secretary or the Secretary’s representative to attend the meetings. 

(d) PROGRAMS AND PROJECTS; BUDGETS; EXPENSES.— 

(1) PROGRAMS AND PROJECTS.— 

(A) IN GENERAL.—The order shall require the Board to submit to the Secretary for approval any program or project of research, education, or promotion relating to concrete masonry products. 

(B) STATEMENT REQUIRED.—Any educational or promotional activity undertaken with funds provided by the Board shall include a statement that 

such activities were supported in whole or in part by the Board. 

(2) BUDGETS.— 

(A) SUBMISSION.—The order shall require the Board to submit to the Secretary for approval a budget of the anticipated expenses and disbursements 

of the Board in the implementation of the order, including the projected 

costs of concrete masonry products research, education, and promotion programs and projects. 

(B) TIMING.—The budget shall be submitted before the beginning of a fiscal year and as frequently as may be necessary after the beginning of the 

fiscal year. 

(C) APPROVAL.—If the Secretary fails to approve or reject a budget within 

60 days of receipt, such budget shall be deemed approved, unless the Secretary provides to the Board and to Congress, in writing, reasonable justification for the delay and provides a reasonable date by which approval 

or disapproval will be made. 

(3) ADMINISTRATIVE EXPENSES.— 

(A) INCURRING EXPENSES.—The Board may incur the expenses described 

in paragraph (2) and other expenses for the administration, maintenance, 

and functioning of the Board as authorized by the Secretary. 

(B) PAYMENT OF EXPENSES.—Expenses incurred under subparagraph (A) 

shall be paid by the Board using assessments collected under section 6, 

earnings obtained from assessments, and other income of the Board. Any 

funds borrowed by the Board shall be expended only for startup costs and 

capital outlays. 

(C) LIMITATION ON SPENDING.—For fiscal years beginning 3 or more years 

after the date of the establishment of the Board, the Board may not expend 

for administration (except for reimbursement to the Secretary required 

under subparagraph (D)), maintenance, and functioning of the Board in a 

fiscal year an amount that exceeds 10 percent of the assessment and other 

income received by the Board for the fiscal year. 

(D) REIMBURSEMENT OF SECRETARY.—The order shall require that the 

Secretary be reimbursed by the Board from assessments for all expenses incurred by the Secretary in the implementation, administration, and superVerDate Sep 11 2014 07:43 Jul 11, 2016 Jkt 059006 PO 00000 Frm 00005 Fmt 6659 Sfmt 6621 E:\HR\OC\HR671.XXX HR671

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vision of the order, including all referenda costs incurred in connection with 

the order. 

(e) CONTRACTS AND AGREEMENTS.— 

(1) IN GENERAL.—The order shall provide that, with the approval of the Secretary, the Board may— 

(A) enter into contracts and agreements to carry out generic research, 

education, and promotion programs and projects relating to concrete masonry products, including contracts and agreements with manufacturer associations or other entities as considered appropriate by the Secretary; 

(B) enter into contracts and agreements for administrative services; and 

(C) pay the cost of approved generic research, education, and promotion 

programs and projects using assessments collected under section 6, earnings obtained from assessments, and other income of the Board. 

(2) REQUIREMENTS.—Each contract or agreement shall provide that any person who enters into the contract or agreement with the Board shall— 

(A) develop and submit to the Board a proposed program or project together with a budget that specifies the cost to be incurred to carry out the 

program or project; 

(B) keep accurate records of all of transactions relating to the contract or 

agreement; 

(C) account for funds received and expended in connection with the contract or agreement; 

(D) make periodic reports to the Board of activities conducted under the 

contract or agreement; and 

(E) make such other reports as the Board or the Secretary considers relevant. 

(3) FAILURE TO APPROVE.—If the Secretary fails to approve or reject a contract 

or agreement entered into under paragraph (1) within 60 days of receipt, the 

contract or agreement shall be deemed approved, unless the Secretary provides 

to the Board and to Congress, in writing, reasonable justification for the delay 

and provides a reasonable date by which approval or disapproval will be made. 

(f) BOOKS AND RECORDS OF BOARD.— 

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

(A) maintain such books and records (which shall be available to the Secretary for inspection and audit) as the Secretary may require; 

(B) collect and submit to the Secretary, at any time the Secretary may 

specify, any information the Secretary may request; and 

(C) account for the receipt and disbursement of all funds in the possession, or under the control, of the Board. 

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

(A) the books and records of the Board audited by an independent auditor 

at the end of each fiscal year; and 

(B) a report of the audit submitted directly to the Secretary. 

(g) PROHIBITED ACTIVITIES.— 

(1) IN GENERAL.—Subject to paragraph (2), the Board shall not engage in any 

program or project to, nor shall any funds received by the Board under this Act 

be used to— 

(A) influence legislation, elections, or governmental action; 

(B) engage in an action that would be a conflict of interest; 

(C) engage in advertising that is false or misleading; 

(D) engage in any promotion, research, or education that would be disparaging to other construction materials; or 

(E) engage in any promotion or project that would benefit any individual 

manufacturer. 

(2) EXCEPTIONS.—Paragraph (1) does not preclude— 

(A) the development and recommendation of amendments to the order; 

(B) the communication to appropriate government officials of information 

relating to the conduct, implementation, or results of research, education, 

and promotion activities under the order except communications described 

in paragraph(1)(A); or 

(C) any lawful action designed to market concrete masonry products directly to a foreign government or political subdivision of a foreign government. 

(h) PERIODIC EVALUATION.—The order shall require the Board to provide for the 

independent evaluation of all research, education, and promotion programs or 

projects undertaken under the order, beginning five years after the date of enactment of this Act and every three years thereafter. The Board shall submit to the 

Secretary and make available to the public the results of each such evaluation. 


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(i) OBJECTIVES.—The Board shall establish annual research, education, and promotion objectives and performance metrics for each fiscal year subject to approval 

by the Secretary. 

(j) BIENNIAL REPORT.—Every two years the Board shall prepare and make publicly available a comprehensive and detailed report that includes an identification 

and description of all programs and projects undertaken by the Board during the 

previous two years as well as those planned for the subsequent two years and detail 

the allocation or planned allocation of Board resources for each such program or 

project. Such report shall also include— 

(1) the Board’s overall financial condition; 

(2) a summary of the amounts obligated or expended during the two preceding fiscal years; and 

(3) a description of the extent to which the Board’s objectives were met according to the metrics required under subsection (i). 

(k) BOOKS AND RECORDS OF PERSONS COVERED BY ORDER.— 

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

(A) maintain records sufficient to ensure compliance with the order and 

regulations; and 

(B) make the records described in subparagraph (A) available, during normal business hours, for inspection by employees or agents of the Board or 

the Department. 

(2) TIME REQUIREMENT.—Any record required to be maintained under paragraph (1) shall be maintained for such time period as the Secretary may prescribe. 

(3) CONFIDENTIALITY OF INFORMATION.— 

(A) IN GENERAL.—Except as otherwise provided in this subparagraph (B) 

trade secrets and commercial or financial information that is privileged or 

confidential reported to, or otherwise obtained by the Board or the Secretary (or any representative of the Board or the Secretary) under this Act 

shall not be disclosed by any officers, employees, and agents of the Department or the Board. 

(B) SUITS AND HEARINGS.—Information referred to in subparagraph (A) 

may be disclosed only if— 

(i) the Secretary considers the information relevant; and 

(ii) the information is revealed in a judicial proceeding or administrative hearing brought at the direction or on the request of the Secretary 

or to which the Secretary or any officer of the Department is a party. 

(C) GENERAL STATEMENTS AND PUBLICATIONS.—This paragraph does not 

prohibit— 

(i) the issuance of general statements based on reports or on information relating to a number of persons subject to an order if the statements do not identify the information furnished by any person; or 

(ii) the publication, by direction of the Secretary, of the name of any 

person violating any order and a statement of the particular provisions 

of the order violated by the person. 

(D) PENALTY.—Any officer, employee, or agent of the Department of Commerce or any officer, employee, or agent of the Board who willfully violates 

this subsection shall be fined not more than $1,000 and imprisoned for not 

more than 1 year, or both. 

(4) WITHHOLDING INFORMATION.—This subsection does not authorize the withholding of information from Congress. 

SEC. 6. ASSESSMENTS. 

(a) ASSESSMENTS.—The order shall provide that assessments shall be paid by a 

manufacturer if the manufacturer has manufactured concrete masonry products 

during a period of at least 180 days prior to the date the assessment is to be remitted. 

(b) COLLECTION.— 

(1) IN GENERAL.—Assessments required under the order shall be remitted by 

the manufacturer to the Board in the manner prescribed by the order. 

(2) TIMING.—The order shall provide that assessments required under the 

order shall be remitted to the Board not less frequently than quarterly. 

(3) RECORDS.—As part of the remittance of assessments, manufacturers shall 

identify the total amount due in assessments on all sales receipts, invoices or 

other commercial documents of sale as a result of the sale of concrete masonry 

units in a manner as prescribed by the Board to ensure compliance with the 

order. 

(c) ASSESSMENT RATES.—With respect to assessment rates, the order shall contain 

the following terms: 


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(1) INITIAL RATE.—The assessment rate on concrete masonry products shall be 

$0.01 per concrete masonry unit sold. 

(2) CHANGES IN THE RATE.— 

(A) AUTHORITY TO CHANGE RATE.—The Board shall have the authority to 

change the assessment rate. A two-thirds majority of voting members of the 

Board shall be required to approve a change in the assessment rate. 

(B) LIMITATION ON INCREASES.—An increase or decrease in the assessment rate with respect to concrete masonry products may not exceed $0.01 

per concrete masonry unit sold. 

(C) MAXIMUM RATE.—The assessment rate shall not be in excess of $0.05 

per concrete masonry unit. 

(D) LIMITATION ON FREQUENCY OF CHANGES.—The assessment rate may 

not be increased or decreased more than once annually. 

(d) LATE-PAYMENT AND INTEREST CHARGES.— 

(1) IN GENERAL.—Late-payment and interest charges may be levied on each 

person subject to the order who fails to remit an assessment in accordance with 

subsection (b). 

(2) RATE.—The rate for late-payment and interest charges shall be specified 

by the Secretary. 

(e) INVESTMENT OF ASSESSMENTS.—Pending disbursement of assessments under a 

budget approved by the Secretary, the Board may invest assessments collected 

under this section in— 

(1) obligations of the United States or any agency of the United States; 

(2) general obligations of any State or any political subdivision of a State; 

(3) interest-bearing accounts or certificates of deposit of financial institutions 

that are members of the Federal Reserve System; or 

(4) obligations fully guaranteed as to principal and interest by the United 

States. 

(f) ASSESSMENT FUNDS FOR REGIONAL INITIATIVES.— 

(1) IN GENERAL.—The order shall provide that no less than 50 percent of the 

assessments (less administration expenses) paid by a manufacturer shall be 

used to support research, education, and promotion programs and projects in 

support of the geographic region of the manufacturer. 

(2) GEOGRAPHIC REGIONS.—The order shall provide for the following geographic regions: 

(A) Region I shall comprise Connecticut, Delaware, the District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New 

York, Pennsylvania, Rhode Island, Vermont, and West Virginia. 

(B) Region II shall comprise Alabama, Florida, Georgia, Mississippi, 

North Carolina, South Carolina, Tennessee, and Virginia. 

(C) Region III shall comprise Illinois, Indiana, Iowa, Kentucky, Michigan, 

Minnesota, Nebraska, North Dakota, Ohio, South Dakota, and Wisconsin. 

(D) Region IV shall comprise Arizona, Arkansas, Kansas, Louisiana, Missouri, New Mexico, Oklahoma, and Texas. 

(E) Region V shall comprise Alaska, California, Colorado, Hawaii, Idaho, 

Montana, Nevada, Oregon, Utah, Washington, and Wyoming. 

(3) ADJUSTMENT OF GEOGRAPHIC REGIONS.—The order shall provide that the 

Secretary may, upon recommendation of the Board, modify the composition of 

the geographic regions described in paragraph (2). 

SEC. 7. REFERENDA. 

(a) INITIAL REFERENDUM.— 

(1) REFERENDUM REQUIRED.—During the 60-day period immediately preceding 

the proposed effective date of the order issued under section 4, the Secretary 

shall conduct a referendum among manufacturers eligible under subsection 

(b)(2) subject to assessments under section 6. 

(2) APPROVAL OF ORDER NEEDED.—The order shall become effective only if the 

Secretary determines that the order has been approved by a majority of manufacturers voting who also represent a majority of the machine cavities in operation of those manufacturers voting in the referendum. 

(b) VOTES PERMITTED.— 

(1) IN GENERAL.—Each manufacturer eligible to vote in a referendum conducted under this section shall be entitled to cast one vote. 

(2) ELIGIBILITY.—For purposes of paragraph (1), a manufacturer shall be considered to be eligible to vote if the manufacturer has manufactured concrete masonry products during a period of at least 180 days prior to the first day of the 

period during which voting in the referendum will occur. 

(c) MANNER OF CONDUCTING REFERENDA.— 


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(1) IN GENERAL.—Referenda conducted pursuant to this section shall be conducted in a manner determined by the Secretary. 

(2) ADVANCE REGISTRATION.—A manufacturer who chooses to vote in any referendum conducted under this section shall register with the Secretary prior to 

the voting period, after receiving notice from the Secretary concerning the referendum under paragraph (4). 

(3) VOTING.—The Secretary shall establish procedures for voting in any referendum conducted under this section. The ballots and other information or reports that reveal or tend to reveal the identity or vote of voters shall be strictly 

confidential. 

(4) NOTICE.—Not later than 30 days before a referendum is conducted under 

this section with respect to an order, the Secretary shall notify all manufacturers, in such a manner as determined by the Secretary, of the period during 

which voting in the referendum will occur. The notice shall explain any registration and voting procedures established under this subsection. 

(d) SUBSEQUENT REFERENDA.—If an order is approved in a referendum conducted 

under subsection (a), the Secretary shall conduct a subsequent referendum— 

(1) at the request of the Board, subject to the voting requirements of subsections (b) and (c), to ascertain whether eligible manufacturers favor suspension, termination, or continuance of the order; or 

(2) effective beginning on the date that is 5 years after the date of the approval of the order, and at 5-year intervals thereafter, at the request of 25 percent or more of the total number of persons eligible to vote under subsection 

(b). 

(e) SUSPENSION OR TERMINATION.—If, as a result of a referendum conducted under 

subsection (d), the Secretary determines that suspension or termination of the order 

is favored by a majority of all votes cast in the referendum as provided in subsection 

(a)(2), the Secretary shall— 

(1) not later than 180 days after the referendum, suspend or terminate, as 

appropriate, collection of assessments under the order; and 

(2) suspend or terminate, as appropriate, programs and projects under the 

order as soon as practicable and in an orderly manner. 

(f) COSTS OF REFERENDA.—The Board established under an order with respect to 

which a referendum is conducted under this section shall reimburse the Secretary 

from assessments for any expenses incurred by the Secretary to conduct the referendum. 

SEC. 8. PETITION AND REVIEW. 

(a) PETITION.— 

(1) IN GENERAL.—A person subject to an order issued under this Act may file 

with the Secretary a petition— 

(A) stating that the order, any provision of the order, or any obligation 

imposed in connection with the order, is not established in accordance with 

law; and 

(B) requesting a modification of the order or an exemption from the order. 

(2) HEARING.—The Secretary shall give the petitioner an opportunity for a 

hearing on the petition, in accordance with regulations issued by the Secretary. 

(3) RULING.—After the hearing, the Secretary shall make a ruling on the petition. The ruling shall be final, subject to review as set forth in subsection (b). 

(4) LIMITATION ON PETITION.—Any petition filed under this subsection challenging an order, any provision of the order, or any obligation imposed in connection with the order, shall be filed not less than 2 years after the effective 

date of the order, provision, or obligation subject to challenge in the petition. 

(b) REVIEW.— 

(1) COMMENCEMENT OF ACTION.—The district courts of the United States in 

any district in which a person who is a petitioner under subsection (a) resides 

or conducts business shall have jurisdiction to review the ruling of the Secretary 

on the petition of the person, if a complaint requesting the review is filed no 

later than 30 days after the date of the entry of the ruling by the Secretary. 

(2) PROCESS.—Service of process in proceedings under this subsection shall be 

conducted in accordance with the Federal Rules of Civil Procedure. 

(3) REMANDS.—If the court in a proceeding under this subsection determines 

that the ruling of the Secretary on the petition of the person is not in accordance with law, the court shall remand the matter to the Secretary with directions— 

(A) to make such ruling as the court shall determine to be in accordance 

with law; or 

(B) to take such further action as, in the opinion the court, the law requires. 


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(c) ENFORCEMENT.—The pendency of proceedings instituted under this section 

shall not impede, hinder, or delay the Attorney General or the Secretary from obtaining relief under section 9. 

SEC. 9. ENFORCEMENT. 

(a) JURISDICTION.—A district court of the United States shall have jurisdiction to 

enforce, and to prevent and restrain any person from violating, this Act or an order 

or regulation issued by the Secretary under this Act. 

(b) REFERRAL TO ATTORNEY GENERAL.—A civil action authorized to be brought 

under this section shall be referred to the Attorney General of the United States 

for appropriate action. 

(c) CIVIL PENALTIES AND ORDERS.— 

(1) CIVIL PENALTIES.—A person who willfully violates an order or regulation 

issued by the Secretary under this Act may be assessed by the Secretary a civil 

penalty of not more than $5,000 for each violation. 

(2) SEPARATE OFFENSE.—Each violation and each day during which there is 

a failure to comply with an order or regulation issued by the Secretary shall 

be considered to be a separate offense. 

(3) CEASE-AND-DESIST ORDERS.—In addition to, or in lieu of, a civil penalty, 

the Secretary may issue an order requiring a person to cease and desist from 

violating the order or regulation. 

(4) NOTICE AND HEARING.—No order assessing a penalty or cease-and-desist 

order may be issued by the Secretary under this subsection unless the Secretary 

provides notice and an opportunity for a hearing on the record with respect to 

the violation. 

(5) FINALITY.—An order assessing a penalty or a cease-and-desist order issued 

under this subsection by the Secretary shall be final and conclusive unless the 

person against whom the order is issued files an appeal from the order with 

the appropriate district court of the United States. 

(d) ADDITIONAL REMEDIES.—The remedies provided in this Act shall be in addition 

to, and not exclusive of, other remedies that may be available. 

SEC. 10. INVESTIGATION AND POWER TO SUBPOENA. 

(a) INVESTIGATIONS.—The Secretary may conduct such investigations as the Secretary considers necessary for the effective administration of this Act, or to determine whether any person has engaged or is engaging in any act that constitutes 

a violation of this Act or any order or regulation issued under this Act. 

(b) SUBPOENAS, OATHS, AND AFFIRMATIONS.— 

(1) INVESTIGATIONS.—For the purpose of conducting an investigation under 

subsection (a), the Secretary may administer oaths and affirmations, subpoena 

witnesses, compel the attendance of witnesses, take evidence, and require the 

production of any records that are relevant to the inquiry. The production of the 

records may be required from any place in the United States. 

(2) ADMINISTRATIVE HEARINGS.—For the purpose of an administrative hearing 

held under section 8(a)(2) or section 9(c)(4), the presiding officer may administer 

oaths and affirmations, subpoena witnesses, compel the attendance of witnesses, take evidence, and require the production of any records that are relevant to the inquiry. The attendance of witnesses and the production of the 

records may be required from any place in the United States. 

(c) AID OF COURTS.— 

(1) IN GENERAL.—In the case of contumacy by, or refusal to obey a subpoena 

issued under subsection (b) to, any person, the Secretary may invoke the aid 

of any court of the United States within the jurisdiction of which the investigation or proceeding is conducted, or where the person resides or conducts business, in order to enforce a subpoena issued under subsection (b). 

(2) ORDER.—The court may issue an order requiring the person referred to in 

paragraph (1) to comply with a subpoena referred to in paragraph (1). 

(3) FAILURE TO OBEY.—Any failure to obey the order of the court may be punished by the court as a contempt of court. 

(4) PROCESS.—Process in any proceeding under this subsection may be served 

in the United States judicial district in which the person being proceeded 

against resides or conducts business, or wherever the person may be found. 

SEC. 11. SUSPENSION OR TERMINATION. 

(a) MANDATORY SUSPENSION OR TERMINATION.—The Secretary shall suspend or 

terminate an order or a provision of an order if the Secretary finds that an order 

or provision of an order obstructs or does not tend to effectuate the purpose of this 

Act, or if the Secretary determines that the order or a provision of an order is not 

favored by a majority of all votes cast in the referendum as provided in section 

7(a)(2). 


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(b) IMPLEMENTATION OF SUSPENSION OR TERMINATION.—If, as a result of a referendum conducted under section 7, the Secretary determines that the order is not 

approved, the Secretary shall— 

(1) not later than 180 days after making the determination, suspend or terminate, as the case may be, collection of assessments under the order; and 

(2) as soon as practicable, suspend or terminate, as the case may be, activities 

under the order in an orderly manner. 

SEC. 12. AMENDMENTS TO ORDERS. 

The provisions of this Act applicable to the order shall be applicable to any 

amendment to the order, except that section 8 shall not apply to an amendment. 

SEC. 13. EFFECT ON OTHER LAWS. 

This Act shall not affect or preempt any other Federal or State law authorizing 

research, education, and promotion relating to concrete masonry products. 

SEC. 14. REGULATIONS. 

The Secretary may issue such regulations as may be necessary to carry out this 

Act and the power vested in the Secretary under this Act. 

SEC. 15. LIMITATION ON EXPENDITURES FOR ADMINISTRATIVE EXPENSES. 

Funds appropriated to carry out this Act may not be used for the payment of the 

expenses or expenditures of the Board in administering the order. 

SEC. 16. STUDY AND REPORT BY THE GOVERNMENT ACCOUNTABILITY OFFICE. 

Not later than 5 years and 8 years after the date of enactment of this Act, the 

Comptroller General of the United States shall prepare a study and submit to Congress and the Secretary a report examining— 

(1) how the Board spends assessments collected; 

(2) the extent to which the Board’s reported activities help achieve its annual 

objectives; 

(3) any changes in demand for concrete masonry products relative to other 

building materials; 

(4) any impact of the Board’s activities on the market share of competing 

products; 

(5) any impact of the Board’s activities on the overall size of the market for 

building products; 

(6) any impact of the Board’s activities on the total number of concrete masonry related jobs, including manufacturing, sales, and installation; 

(7) any significant effects of the Board’s activities on downstream purchasers 

of concrete masonry products and real property into which concrete masonry 

products are incorporated; 

(8) effects on prices of concrete masonry products as a result of the Board’s 

activities; 

(9) the cost to the federal government of an increase in concrete masonry 

product prices, if any, as a result of the program established by this Act; 

(10) the extent to which key statutory requirements are met; 

(11) the extent and strength of federal oversight of the program established 

by this Act; 

(12) the appropriateness of administering the program from within the Office 

of the Secretary of Commerce and the appropriateness of administering the program from within any division of the Department of Commerce, including 

whether the Department has the expertise, knowledge, or other capabilities necessary to adequately administer the program; and 

(13) any other topic that the Comptroller General considers appropriate. 

SEC. 17. STUDY AND REPORT BY THE DEPARTMENT OF COMMERCE. 

Not later than 3 years after the date of enactment of this Act, the Secretary shall 

prepare a study and submit to Congress a report examining the appropriateness and 

effectiveness of applying the commodity check-off program model (such as those programs established under subchapter II of chapter 101 of title 7, United States Code) 

to a nonagricultural industry, taking into account the program established by this 

Act and any other check-off program involving a nonagricultural industry. 

PURPOSE AND SUMMARY

The purpose of H.R. 985, the Concrete Masonry Products Research, Education, and Promotion Act of 2015, is to enable concrete 

masonry products manufacturers to establish, finance, and carry 

out a ‘‘check-off’’ program—a coordinated program of research, eduVerDate Sep 11 2014 07:43 Jul 11, 2016 Jkt 059006 PO 00000 Frm 00011 Fmt 6659 Sfmt 6602 E:\HR\OC\HR671.XXX HR671

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1Pub. L. No. 104–127. 

2 U.S. Department of Agriculture, Federal Research and Promotion Programs (Jul. 27, 2015), 

(online at http://www.ams.usda.gov/ AMSv1.0/ ams.fetch Template Data.do?template= 

TemplateB &leftNav=Research and Promotion&page=ResearchandPromotion). 3 U.S. Department of Agriculture, Industry Insight: Checkoff Programs Empower Business 

(Sept. 21, 2011) (online at http://blogs.usda.gov/2011/09/21/industry-insight-checkoffprograms-empower-business). 4Pub. L. No. 104–284. 

5Pub. L. No. 106–469. 

6Pub. L. No. 113–79. 

cation, and promotion to improve, maintain, and develop markets— 

for concrete masonry products. 

BACKGROUND AND NEED FOR LEGISLATION

Designed to enable cooperation among generic commodity products—such as beef, milk, mushrooms, peanuts, and certain heating 

fuel products—check-off programs support generic research, education, and promotion campaigns and are established at the request of the affected industry. Funding for check-off program activities typically comes from mandatory fees assessed on relevant 

members of the affected industry. Board members from industry 

producers carry out the check-off program’s activities, while the appropriate federal agency oversees the Board to ensure compliance 

with the law and to ensure resources support activities in furtherance of the Board’s purposes. 

Most check-off programs cover agricultural commodities and are 

authorized under the Commodity Promotion, Research, and Information Act of 1996.1 Under that statute, the Agricultural Marketing Service (AMS), a division of the U.S. Department of Agriculture (USDA), is responsible for overseeing at least 20 check-off 

programs.2 AMS is authorized to establish new check-off programs 

and to promulgate regulations fleshing out additional rules for each 

of the programs. 

The activities of each agricultural check-off program are carried 

out and governed by a board appointed by the Secretary of Agriculture from producers’ nominations. All existing check-off programs are funded and operated by the relevant industries. According to the USDA, every $1 dollar spent in a check-off program can 

yield an investment return as high as $18.3

In addition to the USDA administered programs, there are also 

two check-off programs for heating fuel products. The first involves 

propane and was authorized by the Propane Education and Research Act of 1996.4 The second covers heating oil, which was initially authorized by the National Oilheat Research Alliance Act of 

2000,5 and was recently reauthorized by the 2014 Agricultural 

Act.6 The Department of Energy oversees both programs. The intent of H.R. 985 is to establish a similar check-off program for the 

concrete masonry industry. 

HEARINGS

The Subcommittee on Commerce, Manufacturing, and Trade held 

a hearing on H.R. 985 on July 10, 2015. The Subcommittee received testimony from: 

• Ellen Herbst, Chief Financial Officer and Assistant Secretary for Administration, U.S. Department of Commerce; 


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• Franklin Rusco, Director, Natural Resources and Environment-Energy Issues, U.S. Government Accountability Office; 

• Major Ogilvie, General Manager, Ready Mix USA, LLC.; 

• Kent Waide, President, Ruby Concrete Company; and 

• Kate Offringa, President, Vinyl Siding Institute Incorporated. 

COMMITTEE CONSIDERATION

On July 23, 2015, the Subcommittee on Commerce, Manufacturing, and Trade met in open markup session and forwarded H.R. 

985 to the full Committee, as amended, by a voice vote. On July 

29, 2015, the full Committee on Energy and Commerce met in open 

markup session and ordered H.R. 985 reported to the House, as 

amended, by a voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. There were no 

record votes taken in connection with ordering H.R. 985 reported. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee held a hearing and made findings that are reflected in this report. 

STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES

The goal of H.R. 985 is to enable concrete masonry products 

manufacturers to establish, finance, and carry out a ‘‘check-off’’ program—a coordinated program of research, education, and promotion to improve, maintain, and develop markets—for concrete 

masonry products. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee finds that H.R. 985 

would result in no new or increased budget authority, entitlement 

authority, or tax expenditures or revenues. 

EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS

In compliance with clause 9(e), 9(f), and 9(g) of rule XXI of the 

Rules of the House of Representatives, the Committee finds that 

H.R. 985 contains no earmarks, limited tax benefits, or limited tariff benefits. 

COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 


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CONGRESSIONAL BUDGET OFFICE ESTIMATE

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, September 4, 2015. 

Hon. FRED UPTON, 

Chairman, Committee on Energy and Commerce 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 985, the Concrete Masonry Products Research, Education, and Promotion Act of 2015. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Susan Willie. 

Sincerely, 

KEITH HALL. 

Enclosure. 

H.R. 985—Concrete Masonry Products Research, Education, and 

Promotion Act of 2015 

Summary: H.R. 985 would establish the Concrete Masonry Products Board (Board), upon approval of a referendum by producers of 

masonry products made from concrete (CMP), such as cinder 

blocks. The Board would develop research and education programs 

as well as efforts to promote CMP in domestic markets. Funding 

for those activities would be derived from assessments on CMP 

manufacturers based on the number of masonry units sold each 

year. The bill would direct the Secretary of Commerce to organize 

and hold the referendum; the agency’s costs would be reimbursed 

by the Board from initial collections of assessments. 

CBO estimates that enacting H.R. 985 would increase direct spending by $111 million and increase net revenues by $85 million 

over the 2016–2025 period, leading to a net increase in the deficit 

of $26 million over the 10-year period. Pay-as-you-go procedures 

apply because enacting the legislation would affect direct spending 

and revenues. In addition, CBO estimates that implementing H.R. 

985 would cost $2 million over the 2016–2020 period; such spending would be subject to the availability of appropriated funds. 

H.R. 985 contains no intergovernmental mandates as defined in 

the Unfunded Mandates Reform Act (UMRA) and would not affect 

the budgets of state, local, or tribal governments. 

H.R. 985 would impose private-sector mandates on manufacturers of CMP. Based on information from industry experts, CBO estimates that the annual cost of the mandates would fall well below 

the threshold established in UMRA for private-sector mandates 

($154 million in 2015, adjusted annually for inflation). 

Estimated cost to the Federal Government: The estimated budgetary effects of H.R. 985 are shown in the following table. The costs 

of this legislation fall within budget function 370 (commerce and 

housing credit). 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016– 

2020 

2016– 

2025 

CHANGES IN DIRECT SPENDING 

Estimated Budget Authority .................. 0 9 12 12 13 13 13 14 14 14 46 114 


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By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016– 

2020 

2016– 

2025 

Estimated Outlays ................................. 0 6 12 12 13 13 13 14 14 14 43 111 

CHANGES IN REVENUES a

Estimated Revenues .............................. 0 7 9 9 10 10 10 10 10 10 35 85 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES 

Impact on Deficit ................................... 0 ¥1 3 3 3 3 3 4 4 4 8 26 

Notes: Components may not sum to totals because of rounding. 

CBO estimates that implementing H.R. 985 would cost about $2 million over the 2016–2020 period for administrative costs and reports; 

such spending would be subject to the availability of appropriated funds. aWhen excise taxes and other types of revenue, such as assessments by the Board, are imposed on goods or services, they tend to reduce income for workers or business owners in that industry and through the economy. As a consequence, revenue derived from other tax sources—such as income and payroll taxes—will be diminished. As a result, CBO applies an offset when estimating the net revenue effect for proposals that generate such indirect tax. The amount of the offset ranges from 25.6 percent in 2016 to 26.2 percent in 2025. 

Basis of estimate: In CBO’s view, the Board that would be established under H.R. 985 should be considered to be acting on behalf 

of the federal government, thus all of its financial transactions 

should be reflected in the federal budget. While the Board would 

be formed only upon approval by a majority of the producers of 

CMP, once created, the requirement to pay assessments would be 

compulsory and could be enforced by the federal government’s sovereign authority. 

Based on information from industry representatives, CBO anticipates that the referendum would be approved by the industry and 

that the Board and supporting staff would be appointed near the 

end fiscal year 2016. We expect that assessments would be collected beginning in the first half of fiscal year 2017; the bill would 

require assessments to be paid quarterly. 

While the bill would apply to producers of both concrete block 

and concrete pavers, CBO expects that only producers of concrete 

block would participate in the referendum. Because there is little 

differentiation among concrete blocks across manufacturers, all 

producers of concrete blocks would benefit from an industry-wide 

research and promotion program. Manufacturers of concrete pavers, on the other hand, are able to distinguish their products in a 

way that allows consumers to recognize individual brands. Consequently, those producers have little incentive to participate in an 

industry-wide marketing effort. Based on information from manufacturers of concrete pavers, CBO expects that those producers 

would not participate in the referendum. 

Direct spending 

H.R. 985 would authorize the Board to spend amounts collected, 

without further appropriation, on research and education efforts as 

well as on programs to promote sales of CMP. The bill also would 

authorize the Board to borrow funds to cover the Board’s start-up 

expenses and to invest collections in interest-bearing securities 

issued by the Treasury, thereby generating additional funding for 

its activities. Expenditures of assessments and accrued interest 

would be considered direct spending. Based on historical patterns 

for similar activities, CBO estimates that expenditures by the proposed Board would total $111 million over the 2016–2025 period. 


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Revenues 

H.R. 985 would authorize the Board to levy an assessment of one 

cent on each concrete block product sold by all CMP manufacturers 

in the United States. Based on information from industry experts 

and historical sales information, CBO expects about 1.2 billion concrete blocks will be sold in 2016 and we expect sales to grow with 

inflation, yielding, on average, estimated collections of $13 million 

per year. Those amounts would be recorded in the budget as revenues, because payment of the assessments would be compulsory, 

and could be enforced by federal courts. CBO estimates that enacting H.R. 985 would increase gross revenues by $114 million over 

the 2016–2025 period. 

Because excise taxes and other indirect business taxes (such as 

assessments by the Board) reduce the base of income and payroll 

taxes, higher amounts of those indirect business taxes would lead 

to reductions in revenues from income and payroll taxes. As a result, gross assessments would be partially offset by a loss of receipts of about 25 percent each year. Thus, CBO estimates that enacting H.R. 985 would increase net revenues by $85 million over 

the 2016–2025 period. 

Spending subject to appropriation 

H.R. 985 would direct the Secretary of Commerce to develop an 

order to establish the Board and set out its authorities, and to conduct a referendum among eligible CMP manufacturers to approve 

the order. After passage of the referendum, the Secretary would be 

responsible for approving the Board’s programs and budgets each 

year. The bill also would direct the Secretary of Commerce and the 

Government Accountability Office to prepare several reports for the 

Congress to explain the effect the Board has on the concrete masonry block industry and the effectiveness of the referendum model 

on a nonagricultural industry. 

Based on the cost of similar reports and activities, CBO estimates that implementing those provisions would cost about $2 million over the 2016–2020 period, assuming the availability of appropriated funds. 

Pay-As-You-Go considerations: The Statutory Pay-As-You-Go Act 

of 2010 establishes budget-reporting and enforcement procedures 

for legislation affecting direct spending or revenues. The net 

changes in outlays and revenues that are subject to those pay-asyou-go procedures are shown in the following table. 

CBO Estimate of Pay-As-You-Go Effects for H.R. 985 as ordered reported by the House 

Committee on Energy and Commerce on July 29, 2015 

By fiscal year, in millions of dollars— 

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016– 

2020 

2016– 

2025 

NET INCREASE OR DECREASE (¥) IN THE DEFICIT 

Statutory Pay-As-You-Go Impact ........... 0 ¥1 3 3 3 3 3 4 4 4 8 26 

Memorandum: 

Changes in Outlays ...................... 0 6 12 12 13 13 13 14 14 14 43 111 

Changes in Revenues ................... 0 7 9 9 10 10 10 10 10 10 35 85 

Note: Components may not sum to totals because of rounding. 


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Estimated impact on state, local, and tribal governments: H.R. 

985 contains no intergovernmental mandates as defined in UMRA 

and would not affect the budgets of state, local, or tribal governments. 

Estimated impact on the private sector: H.R. 985 would impose 

private-sector mandates on manufacturers of concrete masonry 

products, such as cinder blocks. Those manufacturers would be required to pay to the Board an assessment of one cent per masonry 

unit sold. CBO estimates that the cost of this mandate would 

amount to about $13 million annually on average. The bill also 

would impose mandates on CMP manufacturers by requiring them 

to maintain records and make those records available for inspection 

as required by the Board. Based on information from industry experts, the cost of complying with the recordkeeping requirements 

would be small. Consequently, CBO estimates that the aggregate 

cost of the private-sector mandates in the bill would fall well below 

the annual threshold established in UMRA ($154 million in 2015, 

adjusted annually for inflation). 

Estimate prepared by: Federal costs: Susan Willie; Impact on 

state, local, and tribal governments: Melissa Merrell; Impact on the 

private sector: Logan Smith. 

Estimate approved by: H. Samuel Papenfuss, Deputy Assistant 

Director for Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

DUPLICATION OF FEDERAL PROGRAMS

No provision of H.R. 985 establishes or reauthorizes a program 

of the Federal Government known to be duplicative of another Federal program, a program that was included in any report from the 

Government Accountability Office to Congress pursuant to section 

21 of Public Law 111–139, or a program related to a program identified in the most recent Catalog of Federal Domestic Assistance. 

DISCLOSURE OF DIRECTED RULE MAKINGS

The Committee estimates that enacting H.R. 985 specifically directs to be completed 1 rulemaking within the meaning of 5 U.S.C. 

551. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 


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SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

Section 1 provides that this Act may be cited as the ‘‘Concrete 

Masonry Products Research, Education, and Promotion Act of 

2015.’’ 

Section 2. Declaration of policy 

Section 2 sets forth the purpose of the Act to establish a program 

that strengthens the market position and promotes the use of concrete masonry products. 

Section 3. Definitions 

Section 3 sets forth definitions for terms contained within the 

Act. 

Section 4. Issuance of orders 

Section 4 authorizes the Secretary of the Department of Commerce to issue orders under this Act that are applicable to manufacturers of concrete masonry products. It also sets forth procedures the Secretary must follow in issuing a proposed order, 

amending a current order, and making orders available for public 

comment and review. 

Section 5. Required terms in orders 

Section 5 sets forth the specified terms and conditions that an 

order must contain. This section authorizes the establishment of a 

Concrete Masonry Products Board, the criteria for board membership, and the powers and duties of the board in carrying out the 

promotion, research, and education programs related to concrete 

masonry products. 

Section 6. Assessments 

Section 6 requires and authorizes the collection of mandatory assessments paid by manufacturers of concrete masonry products 

manufactured and marketed in the United States. It also sets forth 

the collection processes of the assessment and details how the assessments must be disbursed to support research, education, and 

promotion programs and projects. 

Section 7. Referenda 

Section 7 requires the Secretary to conduct a referendum among 

manufacturers required to pay the assessments to formally adopt 

an order under this Act. The Secretary will deem the order in effect 

only if it has been approved by a majority of manufacturers voting 

who also represent a majority of the machine cavities in operation 

of those manufacturers voting in the referendum. This section also 

sets forth the terms of eligibility among manufacturers to participate and cast votes on the referendum. 

Section 8. Petition and review 

Section 8 authorizes concrete masonry product manufacturers 

covered by an order to file a petition challenging the legality of the 

order. It also authorizes manufacturers to file a petition requesting 

a modification to the order or an exemption from the order. 


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Section 9. Enforcement 

Section 9 gives U.S. District courts authority to enforce this Act. 

It also authorizes the U.S. Attorney General to bring civil actions. 

It establishes civil penalties and orders for violations of the Act of 

not more than $5,000 for each violation. It also provides that any 

remedies for enforcement listed in this Act are in addition to, and 

not exclusive of, other remedies that may be available. 

Section 10. Investigation and power to subpoena 

Section 10 authorizes the Secretary to conduct investigations, 

issue subpoenas, and take other actions to determine whether any 

persons are engaging in conduct that violates the Act. 

Section 11. Suspension or termination 

Section 11 gives the Secretary authority to suspend or terminate 

an order or provision of an order that obstructs or does not effectuate the purpose of the Act. It also gives the Secretary authority 

to suspend or terminate the collection of assessments under an 

order and all other activities if it is determined that the order is 

not approved as a result of a referendum conducted under 

Section 7. 

Section 12. Amendments to orders 

Section 12 establishes that all the provisions of the Act that are 

applicable to the order will be applicable to any amendment to the 

order, except Section 8 will not apply to an amendment. 

Section 13. Effect on other laws 

Section 13 establishes that this Act will not affect or preempt 

any other Federal or State laws authorizing research, education, 

and promotion relating to concrete masonry products. 

Section 14. Regulations 

Section 14 authorizes the Secretary to issue regulations that may 

be necessary under the power vested in the Secretary under this 

Act to carry out the Act. 

Section 15. Limitation on expenditures for administrative expenses 

Section 15 prohibits the use of any funds appropriated to carry 

out the Act to be used for the payment of expenses or expenditures 

of the Board in administering the order. 

Section 16. Study and report by the Government Accountability Office 

Section 16 requires the Government Accountability Office to conduct two studies examining several factors related to the efficacy 

of the program. The first study must be submitted to Congress no 

later than five years after the Act’s enactment, and the second 

study must be submitted no later than eight years after the Act’s 

enactment. 

Section 17. Study and report by the Department of Commerce 

Section 17 requires the Department of Commerce to prepare a 

study and submit to Congress a report examining the appropriateVerDate Sep 11 2014 07:43 Jul 11, 2016 Jkt 059006 PO 00000 Frm 00019 Fmt 6659 Sfmt 6602 E:\HR\OC\HR671.XXX HR671

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ness and effectiveness of applying the Department of Agriculture’s 

check-off program model to other non-agricultural industries. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

This legislation does not amend any existing Federal statute. 

Æ 


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