I 

114TH CONGRESS 

1ST SESSION 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. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 13, 2015 

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 2015’’. 

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 are 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 (1) BLOCK MACHINE.—The term ‘‘block ma14 chine’’ means a piece of equipment that utilizes vi15 bration and compaction to form concrete masonry 

16 products. 

17 (2) BOARD.—The term ‘‘Board’’ means the 

18 Concrete Masonry Products Board established under 

19 section 5. 

20 (3) CAVITY.—The term ‘‘cavity’’ means the 

21 open space in the mold of a block machine capable 

22 of forming a single concrete masonry unit having 

23 nominal plan dimensions of 8 inches by 16 inches. 

24 (4) COMMERCE.—The term ‘‘commerce’’ in25 cludes interstate, foreign, and intrastate commerce. 


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1 (5) CONCRETE MASONRY PRODUCTS.—The 

2 term ‘‘concrete masonry products’’ refers to a broad3 er class of products, including concrete masonry 

4 units as well as hardscape products such as concrete 

5 pavers and segmental retaining wall units, manufac6 tured on a block machine using dry-cast concrete. 

7 (6) CONCRETE MASONRY UNIT.—The term 

8 ‘‘concrete masonry unit’’ means a concrete masonry 

9 product that is a manmade masonry unit having an 

10 actual width of 3 inches or greater and manufac11 tured from dry-cast concrete using a block machine. 

12 Such term includes concrete block and related con13 crete units used in masonry applications. 

14 (7) DEPARTMENT.—The term ‘‘Department’’ 

15 means the Department of Commerce. 

16 (8) DRY-CAST CONCRETE.—The term ‘‘dry-cast 

17 concrete’’ means a composite material that is com18 posed essentially of aggregates embedded in a bind19 ing medium composed of a mixture of cementitious 

20 materials (including hydraulic cement, pozzolans, or 

21 other cementitious materials) and water of such a 

22 consistency to maintain its shape after forming in a 

23 block machine. 

24 (9) EDUCATION.—The term ‘‘education’’ means 

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1 efits of concrete masonry products in safe and envi2 ronmentally sustainable development, advancements 

3 in concrete masonry product technology and develop4 ment, and other information and programs designed 

5 to generate increased demand for commercial, resi6 dential, multi-family, and institutional projects using 

7 concrete masonry products and to generally enhance 

8 the image of concrete masonry products. 

9 (10) MACHINE CAVITIES.—The term ‘‘machine 

10 cavities’’ means the cavities with which a block ma11 chine could be equipped. 

12 (11) MACHINE CAVITIES IN OPERATION.—The 

13 term ‘‘machine cavities in operation’’ means those 

14 machine cavities associated with a block machine 

15 that have produced concrete masonry units within 

16 the last 6 months of the date set for determining eli17 gibility and is fully operable and capable of pro18 ducing concrete masonry units. 

19 (12) MANUFACTURER.—The term ‘‘manufac20 turer’’ means any person engaged in the manufac21 turing of commercial concrete masonry products. 

22 (13) MASONRY UNIT.—The term ‘‘masonry 

23 unit’’ means a noncombustible building product in24 tended to be laid by hand or joined using mortar, 


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1 grout, surface bonding, post-tensioning or some com2 bination of these methods. 

3 (14) ORDER.—The term ‘‘order’’ means an 

4 order issued under section 4. 

5 (15) PERSON.—The term ‘‘person’’ means any 

6 individual, group of individuals, partnership, cor7 poration, association, cooperative, or any other enti8 ty. 

9 (16) PROMOTION.—The term ‘‘promotion’’ 

10 means any action, including paid advertising, to ad11 vance the image and desirability of concrete masonry 

12 products with the express intent of improving the 

13 competitive position and stimulating sales of con14 crete masonry products in the marketplace. 

15 (17) RESEARCH.—The term ‘‘research’’ means 

16 studies testing the effectiveness of market develop17 ment and promotion efforts, studies relating to the 

18 improvement of concrete masonry products and new 

19 product development, and studies documenting the 

20 performance of concrete masonry. 

21 (18) SECRETARY.—The term ‘‘Secretary’’ 

22 means the Secretary of Commerce. 

23 (19) UNITED STATES.—The term ‘‘United 

24 States’’ means the several States and the District of 

25 Columbia. 


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1 SEC. 4. ISSUANCE OF ORDERS. 

2 (a) IN GENERAL.— 

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

4 procedures provided in subsection (b), shall issue or5 ders under this Act applicable to manufacturers of 

6 concrete masonry products. 

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

8 scope. 

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

10 shall be in effect at any one time. 

11 (b) PROCEDURES.— 

12 (1) DEVELOPMENT OR RECEIPT OF PROPOSED

13 ORDER.—A proposed order with respect to concrete 

14 masonry products may be— 

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

16 or 

17 (B) requested by or submitted to the Sec18 retary by— 

19 (i) an existing national organization of 

20 concrete masonry product manufacturers; 

21 or 

22 (ii) any person that may be affected 

23 by the issuance of an order with respect to 

24 concrete masonry products. 

25 (2) PUBLICATION OF PROPOSED ORDER.—Not 

26 later than 60 days after receiving a proposed order 


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1 or a request for a proposed order in accordance with 

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

3 shall publish a proposed order in the Federal Reg4 ister and give 30 days notice and opportunity for 

5 public comment on the proposed order. 

6 (3) ISSUANCE OF ORDER.— 

7 (A) IN GENERAL.—After notice and oppor8 tunity for public comment are provided in ac9 cordance with paragraph (2), the Secretary 

10 shall issue the order, taking into consideration 

11 the comments received and including in the 

12 order such provisions as are necessary to ensure 

13 that the order is in conformity with this Act. 

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

15 issued and become effective only after an af16 firmative vote in a referendum as provided in 

17 section 7, but not later than 120 days after 

18 publication of the proposed order. 

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

20 time, amend an order. The provisions of this Act applica21 ble to an order shall be applicable to any amendment to 

22 an order. 


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1 SEC. 5. REQUIRED TERMS IN ORDERS. 

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

3 shall contain the terms and provisions specified in this sec4 tion. 

5 (b) CONCRETE MASONRY PRODUCTS BOARD.— 

6 (1) ESTABLISHMENT AND MEMBERSHIP.— 

7 (A) ESTABLISHMENT.—The order shall 

8 provide for the establishment of a Concrete Ma9 sonry Products Board to carry out a program 

10 of generic promotion, research, and information 

11 regarding concrete masonry products. 

12 (B) MEMBERSHIP.— 

13 (i) NUMBER OF MEMBERS.—The 

14 board shall consist of not more than 25 

15 members. 

16 (ii) APPOINTMENT.—The members of 

17 the Board shall be appointed by the Sec18 retary from nominations submitted as pro19 vided in this subsection. 

20 (iii) COMPOSITION.—The Board shall 

21 consist of manufacturers. 

22 (2) DISTRIBUTION OF APPOINTMENTS.— 

23 (A) GEOGRAPHICAL REPRESENTATION.— 

24 To ensure fair and equitable representation of 

25 the concrete masonry products industry, the 

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1 graphical distribution of the manufacture of 

2 concrete masonry products in the United States 

3 and the types of concrete masonry products 

4 manufactured. 

5 (B) ADJUSTMENT IN BOARD REPRESENTA6 TION.—Three years after the assessment of 

7 concrete masonry products commences pursuant 

8 to an order, and at the end of each 3-year pe9 riod thereafter, the Board, subject to the review 

10 and approval of the Secretary, shall, if war11 ranted, recommend to the Secretary the re12 apportionment of the Board membership to re13 flect changes in the geographical distribution of 

14 the manufacture of concrete masonry products 

15 and the types of concrete masonry products 

16 manufactured. 

17 (3) NOMINATIONS PROCESS.—The order shall 

18 provide the following: 

19 (A) NUMBER OF NOMINATIONS.—Two 

20 nominees shall be submitted for each appoint21 ment to the Board. 

22 (B) PROCEDURE.—Nominations for each 

23 appointment of a manufacturer shall be made 

24 by manufacturers in accordance with proce25 dures specified in the order. 


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

2 in which manufacturers fail to nominate indi3 viduals for an appointment to the Board, the 

4 Secretary may appoint an individual to fill the 

5 vacancy on a basis provided in the order or 

6 other regulations of the Secretary. 

7 (D) FAILURE TO APPOINT.—If the Sec8 retary fails to make an appointment to the 

9 Board within 30 days of receiving nominations 

10 for such appointment, the first nominee for 

11 such appointment shall be deemed appointed. 

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

13 the selection of alternate members of the Board by 

14 the Secretary in accordance with procedures speci15 fied in the order. 

16 (5) TERMS.— 

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

18 alternates of the Board shall each serve for a 

19 term of 3 years, except that members and any 

20 alternates initially appointed to the Board shall 

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

22 years, as specified by the order. 

23 (B) LIMITATION ON CONSECUTIVE

24 TERMS.—A member or an alternate may serve 

25 not more than 2 consecutive terms. 


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1 (C) CONTINUATION OF TERM.—Notwith2 standing subparagraph (B), each member or al3 ternate shall continue to serve until a successor 

4 is appointed by the Secretary. 

5 (D) VACANCIES.—A vacancy arising before 

6 the expiration of a term of office of an incum7 bent member or alternate of the Board shall be 

8 filled in a manner provided for in the order. 

9 (6) DISQUALIFICATION FROM BOARD SERV10 ICE.—The order shall provide that if a member or 

11 alternate of the Board who was appointed as a man12 ufacturer ceases to qualify as a manufacturer, such 

13 member or alternate shall be disqualified from serv14 ing on the Board. 

15 (7) COMPENSATION.— 

16 (A) IN GENERAL.—Members and any al17 ternates of the Board shall serve without com18 pensation. 

19 (B) TRAVEL EXPENSES.—If approved by 

20 the Board, members or alternates shall be reim21 bursed for reasonable travel expenses, which 

22 may include per diem allowance or actual sub23 sistence incurred while away from their homes 

24 or regular places of business in the performance 

25 of services for the Board. 


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

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

3 which shall include the power and duty— 

4 (1) to administer the order in accordance with 

5 its terms and conditions and to collect assessments; 

6 (2) to develop and recommend to the Secretary 

7 for approval such bylaws as may be necessary for 

8 the functioning of the Board and such rules as may 

9 be necessary to administer the order, including ac10 tivities authorized to be carried out under the order; 

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

12 members of the Board a chairperson, other officers, 

13 and committees and subcommittees, as the Board 

14 determines appropriate; 

15 (4) to establish regional organizations or com16 mittees to administer regional initiatives; 

17 (5) to establish working committees of persons 

18 other than Board members; 

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

20 members, as the board considers necessary, and to 

21 determine the compensation and specify the duties 

22 of the persons; 

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

24 the Secretary, before the beginning of each fiscal 

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1 nual budget of the anticipated expenses to be in2 curred in the administration of the order, including 

3 the probable cost of each promotion, research, and 

4 information activity proposed to be developed or car5 ried out by the Board; 

6 (8) to borrow funds necessary for the startup 

7 expenses of the order; 

8 (9) to carry out research, education, and pro9 motion programs and projects, and to pay the costs 

10 of such programs and projects with assessments col11 lected under section 6; 

12 (10) subject to subsection (e), to enter into con13 tracts or agreements to develop and carry out pro14 grams or projects of research, education, and pro15 motion relating to concrete masonry products; 

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

17 reflect the actions and transactions of the Board, 

18 and promptly report minutes of each Board meeting 

19 to the Secretary; 

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

21 Secretary complaints of violations of the order; 

22 (13) to furnish the Secretary with such infor23 mation as the Secretary may request; 


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1 (14) to recommend to the Secretary such 

2 amendments to the order as the Board considers ap3 propriate; and 

4 (15) to provide the Secretary with advance no5 tice of meetings. 

6 (d) PROGRAMS AND PROJECTS; BUDGETS; EX7 PENSES.— 

8 (1) PROGRAMS AND PROJECTS.—The order 

9 shall require the Board to submit to the Secretary 

10 for approval any program or project of research, 

11 education, or promotion. 

12 (2) BUDGETS.— 

13 (A) SUBMISSION.—The order shall require 

14 the Board to submit to the Secretary for ap15 proval a budget of the anticipated expenses and 

16 disbursements of the Board in the implementa17 tion of the order, including the projected costs 

18 of concrete masonry products research, edu19 cation, and promotion programs and projects. 

20 (B) TIMING.—The budget shall be sub21 mitted before the beginning of a fiscal year and 

22 as frequently as may be necessary after the be23 ginning of the fiscal year. 


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

2 approve or reject a budget within 30 days of re3 ceipt, such budget shall be deemed approved. 

4 (3) ADMINISTRATIVE EXPENSES.— 

5 (A) INCURRING EXPENSES.—A board may 

6 incur the expenses described in paragraph (2) 

7 and other expenses for the administration, 

8 maintenance, and functioning of the Board as 

9 authorized by the Secretary. 

10 (B) PAYMENT OF EXPENSES.—Expenses 

11 incurred under subparagraph (A) shall be paid 

12 by the Board using assessments collected under 

13 section 6, earnings obtained from assessments, 

14 and other income of the Board. Any funds bor15 rowed by the Board shall be expended only for 

16 startup costs and capital outlays. 

17 (C) LIMITATION ON SPENDING.—For fiscal 

18 years beginning 3 or more years after the date 

19 of the establishment of the Board, the Board 

20 may not expend for administration (except for 

21 reimbursement to the Secretary required under 

22 subparagraph (D)), maintenance, and func23 tioning of the Board in a fiscal year an amount 

24 that exceeds 10 percent of the assessment and 


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1 other income received by the Board for the fis2 cal year. 

3 (D) REIMBURSEMENT OF SECRETARY.— 

4 The order shall require that the Secretary be 

5 reimbursed from assessments for all expenses 

6 incurred by the Secretary in the implementa7 tion, administration, and supervision of the 

8 order, including all referenda costs incurred in 

9 connection with the order. 

10 (e) CONTRACTS AND AGREEMENTS.— 

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

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

13 (A) enter into contracts and agreements to 

14 carry out programs and projects of research, 

15 education, and promotion activities relating to 

16 concrete masonry products, including contracts 

17 and agreements with manufacturer associations 

18 or other entities as considered appropriate by 

19 the Secretary; 

20 (B) enter into contracts and agreements 

21 for administrative services; and 

22 (C) pay the cost of approved research, edu23 cation, and promotion programs and projects 

24 using assessments collected under section 6, 


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1 earnings obtained from assessments, and other 

2 income of the Board. 

3 (2) REQUIREMENTS.—Each contract or agree4 ment shall provide that any person who enters into 

5 the contract or agreement with the Board shall— 

6 (A) develop and submit to the Board a 

7 proposed activity together with a budget that 

8 specifies the cost to be incurred to carry out the 

9 activity; 

10 (B) keep accurate records of all of trans11 actions relating to the contract or agreement; 

12 (C) account for funds received and ex13 pended in connection with the contract or 

14 agreement; 

15 (D) make periodic reports to the Board of 

16 activities conducted under the contract or 

17 agreement; and 

18 (E) make such other reports as the Board 

19 or the Secretary considers relevant. 

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

21 fails to approve or reject a contract or agreement 

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

23 receipt, the contract or agreement shall be deemed 

24 approved. 

25 (f) BOOKS AND RECORDS OF BOARD.— 


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

2 Board to— 

3 (A) maintain such books and records 

4 (which shall be available to the Secretary for in5 spection and audit) as the Secretary may re6 quire; 

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

8 any time the Secretary may specify, any infor9 mation the Secretary may request; and 

10 (C) account for the receipt and disburse11 ment of all funds in the possession, or under 

12 the control, of the Board. 

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

14 to have— 

15 (A) the books and records of the Board au16 dited by an independent auditor at the end of 

17 each fiscal year; and 

18 (B) a report of the audit submitted di19 rectly to the Secretary. 

20 (g) PROHIBITED ACTIVITIES.— 

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

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

23 shall any funds received by the Board under this Act 

24 be used to— 


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1 (A) influence legislation or governmental 

2 action; 

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

4 conflict of interest; or 

5 (C) engage in advertising that is false or 

6 misleading. 

7 (2) EXCEPTIONS.—Paragraph (1) does not pre8 clude— 

9 (A) the development and recommendation 

10 of amendments to the order; 

11 (B) the communication to appropriate gov12 ernment officials of information relating to the 

13 conduct, implementation, or results of research, 

14 education, and promotion activities under the 

15 order; or 

16 (C) any action designed to market concrete 

17 masonry products directly to a foreign govern18 ment or political subdivision of a foreign gov19 ernment. 

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

21 the Board to provide for the independent evaluation of all 

22 research, education, and promotion activities undertaken 

23 under the order. 

24 (i) BOOKS AND RECORDS OF PERSONS COVERED BY

25 ORDER.— 


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

2 manufacturers of concrete masonry products shall— 

3 (A) maintain records sufficient to ensure 

4 compliance with the order and regulations; 

5 (B) submit to the Board any information 

6 required by the Board to carry out its respon7 sibilities; and 

8 (C) make the records described in subpara9 graph (A) available, during normal business 

10 hours, for inspection by employees or agents of 

11 the Board or the Department, including any 

12 records necessary to verify information required 

13 under subparagraph (B). 

14 (2) TIME REQUIREMENT.—Any record required 

15 to be maintained under paragraph (1) shall be main16 tained for such time period as the Secretary may 

17 prescribe. 

18 (3) CONFIDENTIALITY OF INFORMATION.— 

19 (A) IN GENERAL.—Except as otherwise 

20 provided in this Act, all information obtained 

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

22 under section 7 shall be kept confidential by all 

23 officers, employees, and agents of the Depart24 ment and of the Board. 


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1 (B) SUITS AND HEARINGS.—Information 

2 referred to in subparagraph (A) may be dis3 closed only if— 

4 (i) the Secretary considers the infor5 mation relevant; and 

6 (ii) the information is revealed in a 

7 judicial proceeding or administrative hear8 ing brought at the direction or on the re9 quest of the Secretary or to which the Sec10 retary or any officer of the Department is 

11 a party. 

12 (C) GENERAL STATEMENTS AND PUBLICA13 TIONS.—This paragraph does not prohibit— 

14 (i) the issuance of general statements 

15 based on reports or on information relating 

16 to a number of persons subject to an order 

17 if the statements do not identify the infor18 mation furnished by any person; or 

19 (ii) the publication, by direction of the 

20 Secretary, of the name of any person vio21 lating any order and a statement of the 

22 particular provisions of the order violated 

23 by the person. 

24 (D) PENALTY.—Any person who willfully 

25 violates this subsection shall be fined not more 


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

2 or both. 

3 (4) WITHHOLDING INFORMATION.—This sub4 section does not authorize the withholding of infor5 mation from Congress. 

6 SEC. 6. ASSESSMENTS. 

7 (a) ASSESSMENTS.—The order shall provide that as8 sessments shall be paid by manufacturers with respect to 

9 concrete masonry products manufactured and marketed in 

10 the United States. 

11 (b) COLLECTION.— 

12 (1) IN GENERAL.—Assessments required under 

13 the order shall be remitted by the manufacturer to 

14 the Board in the manner prescribed by the order. 

15 (2) TIMING.—The order shall provide that as16 sessments required under the order shall be remitted 

17 to the Board not less frequently than quarterly. 

18 (3) RECORDS.—As part of the remittance of as19 sessments, manufacturers shall identify the total 

20 amount due in assessments on all sales receipts, in21 voices or other commercial documents of sale as a 

22 result of the sale of concrete masonry units in a 

23 manner as prescribed by the Board to ensure com24 pliance with the order. 


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1 (c) ASSESSMENT RATES.—With respect to assess2 ment rates, the order shall contain the following terms: 

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

4 concrete masonry products shall be $0.01 per con5 crete masonry unit sold. 

6 (2) CHANGES IN THE RATE.— 

7 (A) AUTHORITY TO CHANGE RATE.—The 

8 Board shall have the authority to change the 

9 assessment rate. A two-thirds majority of voting 

10 members of the Board shall be required to ap11 prove a change in the assessment rate. 

12 (B) LIMITATION ON INCREASES.—An in13 crease or decrease in the assessment rate with 

14 respect to concrete masonry products may not 

15 exceed $0.01 per concrete masonry unit sold. 

16 (C) MAXIMUM RATE.—The assessment 

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

18 masonry unit. 

19 (D) LIMITATION ON FREQUENCY OF

20 CHANGES.—The assessment rate may not be in21 creased or decreased more than once annually. 

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

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

24 charges may be levied on each person subject to the 


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1 order who fails to remit an assessment in accordance 

2 with subsection (b). 

3 (2) RATE.—The rate for late-payment and in4 terest charges shall be specified by the Secretary. 

5 (e) INVESTMENT OF ASSESSMENTS.—Pending dis6 bursement of assessments under a budget approved by the 

7 Secretary, a board may invest assessments collected under 

8 this section in— 

9 (1) obligations of the United States or any 

10 agency of the United States; 

11 (2) general obligations of any State or any po12 litical subdivision of a State; 

13 (3) interest-bearing accounts or certificates of 

14 deposit of financial institutions that are members of 

15 the Federal Reserve System; or 

16 (4) obligations fully guaranteed as to principal 

17 and interest by the United States. 

18 (f) ASSESSMENT FUNDS FOR REGIONAL INITIA19 TIVES.— 

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

21 no less than 50 percent of the assessments (less ad22 ministration expenses) paid by a manufacturer shall 

23 be used to support research, education, and pro24 motion plans and projects in support of the geo25 graphic region of the manufacturer. 


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1 (2) GEOGRAPHIC REGIONS.—The order shall 

2 provide for the following geographic regions: 

3 (A) Region I shall comprise Connecticut, 

4 Delaware, Maine, Maryland, Massachusetts, 

5 New Hampshire, New Jersey, New York, Penn6 sylvania, Rhode Island, Vermont, and West Vir7 ginia. 

8 (B) Region II shall comprise Alabama, 

9 Florida, Georgia, Mississippi, North Carolina, 

10 South Carolina, Tennessee, and Virginia. 

11 (C) Region III shall comprise Illinois, Indi12 ana, Iowa, Kentucky, Michigan, Minnesota, Ne13 braska, North Dakota, Ohio, South Dakota, 

14 and Wisconsin. 

15 (D) Region IV shall comprise Arizona, Ar16 kansas, Kansas, Louisiana, Missouri, New Mex17 ico, Oklahoma, and Texas. 

18 (E) Region V shall comprise Alaska, Cali19 fornia, Colorado, Hawaii, Idaho, Montana, Ne20 vada, Oregon, Utah, Washington, and Wyo21 ming. 

22 (3) ADJUSTMENT OF GEOGRAPHIC REGIONS.— 

23 The order shall provide that the Secretary may, 

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1 position of the geographic regions described in para2 graph (2). 

3 SEC. 7. REFERENDA. 

4 (a) INITIAL REFERENDUM.— 

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

6 day period immediately preceding the proposed effec7 tive date of the order issued under section 4, the 

8 Secretary shall conduct a referendum among manu9 facturers required to pay assessments under the 

10 order, as provided in section 6. 

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

12 shall become effective only if the Secretary deter13 mines that the order has been approved by a simple 

14 majority of all votes cast in the referendum. 

15 (b) VOTES PERMITTED.— 

16 (1) IN GENERAL.—Each manufacturer eligible 

17 to vote in a referendum conducted under this section 

18 shall be entitled to cast one vote for each machine 

19 cavity in operation that is operated by such manu20 facturer if they satisfy the eligibility requirements as 

21 defined in paragraph (2). 

22 (2) ELIGIBILITY.—For purposes of paragraph 

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

24 to vote if they have manufactured concrete masonry 


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1 products during a period of at least 180 days prior 

2 to the referendum. 

3 (c) MANNER OF CONDUCTING REFERENDA.— 

4 (1) IN GENERAL.—Referenda conducted pursu5 ant to this section shall be conducted in a manner 

6 determined by the Secretary. 

7 (2) ADVANCE REGISTRATION.—A manufacturer 

8 who chooses to vote in any referendum conducted 

9 under this section shall register with the Secretary 

10 prior to the voting period, after receiving notice from 

11 the Secretary concerning the referendum under 

12 paragraph (4). 

13 (3) VOTING.—The Secretary shall establish pro14 cedures for voting in any referendum conducted 

15 under this section. The ballots and other information 

16 or reports that reveal or tend to reveal the identity 

17 or vote of voters shall be strictly confidential. 

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

19 referendum is conducted under this section with re20 spect to an order, the Secretary shall notify all man21 ufacturers, in such a manner as determined by the 

22 Secretary, of the period during which voting in the 

23 referendum will occur. The notice shall explain any 

24 registration and voting procedures established under 

25 this subsection. 


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1 (d) SUBSEQUENT REFERENDA.—If an order is ap2 proved in a referendum conducted under subsection (a), 

3 the Secretary shall conduct a subsequent referendum— 

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

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

6 ascertain whether eligible manufacturers favor sus7 pension, termination, or continuance of the order; or 

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

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

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

11 percent or more of the number of persons eligible to 

12 vote under subsection (b). 

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

14 of a referendum conducted under subsection (d), the Sec15 retary determines that suspension or termination of the 

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

17 the referendum, the Secretary shall— 

18 (1) not later than 180 days after the ref19 erendum, suspend or terminate, as appropriate, col20 lection of assessments under the order; and 

21 (2) suspend or terminate, as appropriate, activi22 ties under the order as soon as practicable and in 

23 an orderly manner. 

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

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1 ducted under this section shall reimburse the Secretary 

2 from assessments for any expenses incurred by the Sec3 retary to conduct the referendum. 

4 SEC. 8. PETITION AND REVIEW. 

5 (a) PETITION.— 

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

7 issued under this Act may file with the Secretary a 

8 petition— 

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

10 the order, or any obligation imposed in connec11 tion with the order, is not established in accord12 ance with law; and 

13 (B) requesting a modification of the order 

14 or an exemption from the order. 

15 (2) HEARING.—The Secretary shall give the pe16 titioner an opportunity for a hearing on the petition, 

17 in accordance with regulations issued by the Sec18 retary. 

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

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

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

22 (b). 

23 (4) LIMITATION ON PETITION.—Any petition 

24 filed under this subsection challenging an order, any 

25 provision of the order, or any obligation imposed in 


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1 connection with the order, shall be filed within 2 

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

3 or obligation subject to challenge in the petition. 

4 (b) REVIEW.— 

5 (1) COMMENCEMENT OF ACTION.—The district 

6 courts of the United States in any district in which 

7 a person who is a petitioner under subsection (a) re8 sides or conducts business shall have jurisdiction to 

9 review the ruling of the Secretary on the petition of 

10 the person, if a complaint requesting the review is 

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

12 entry of the ruling by the Secretary. 

13 (2) PROCESS.—Service of process in pro14 ceedings under this subsection shall be conducted in 

15 accordance with the Federal Rules of Civil Proce16 dure. 

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

18 under this subsection determines that the ruling of 

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

20 accordance with law, the court shall remand the 

21 matter to the Secretary with directions— 

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

23 determine to be in accordance with law; or 

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

25 opinion the court, the law requires. 


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1 (c) ENFORCEMENT.—The pendency of proceedings 

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

3 delay the Attorney General or the Secretary from obtain4 ing relief under section 9. 

5 SEC. 9. ENFORCEMENT. 

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

7 States shall have jurisdiction to enforce, and to prevent 

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

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

10 (b) REFERRAL TO ATTORNEY GENERAL.—A civil ac11 tion authorized to be brought under this section shall be 

12 referred to the Attorney General of the United States for 

13 appropriate action. 

14 (c) CIVIL PENALTIES AND ORDERS.— 

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

16 violates an order or regulation issued by the Sec17 retary under this Act may be assessed by the Sec18 retary a civil penalty of not more than $5,000 for 

19 each violation. 

20 (2) SEPARATE OFFENSE.—Each violation and 

21 each day during which there is a failure to comply 

22 with an order or regulation issued by the Secretary 

23 shall be considered to be a separate offense. 

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

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


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1 issue an order requiring a person to cease and desist 

2 from violating the order or regulation. 

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

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

5 the Secretary under this subsection unless the Sec6 retary provides notice and an opportunity for a hear7 ing on the record with respect to the violation. 

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

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

10 by the Secretary shall be final and conclusive unless 

11 the person against whom the order is issued files an 

12 appeal from the order with the appropriate district 

13 court of the United States, as provided in subsection 

14 (d). 

15 (d) ADDITIONAL REMEDIES.—The remedies provided 

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

17 other remedies that may be available. 

18 SEC. 10. INVESTIGATION AND POWER TO SUBPOENA. 

19 (a) INVESTIGATIONS.—The Secretary may conduct 

20 such investigations as the Secretary considers necessary 

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

22 whether any person has engaged or is engaging in any 

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

24 or regulation issued under this Act. 

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


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1 (1) INVESTIGATIONS.—For the purpose of con2 ducting an investigation under subsection (a), the 

3 Secretary may administer oaths and affirmations, 

4 subpoena witnesses, compel the attendance of wit5 nesses, take evidence, and require the production of 

6 any records that are relevant to the inquiry. The 

7 production of the records may be required from any 

8 place in the United States. 

9 (2) ADMINISTRATIVE HEARINGS.—For the pur10 pose of an administrative hearing held under section 

11 8(a)(2) or section 9(c)(4), the presiding officer may 

12 administer oaths and affirmations, subpoena wit13 nesses, compel the attendance of witnesses, take evi14 dence, and require the production of any records 

15 that are relevant to the inquiry. The attendance of 

16 witnesses and the production of the records may be 

17 required from any place in the United States. 

18 (c) AID OF COURTS.— 

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

20 or refusal to obey a subpoena issued under sub21 section (b) to, any person, the Secretary may invoke 

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

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1 ducts business, in order to enforce a subpoena issued 

2 under subsection (b). 

3 (2) ORDER.—The court may issue an order re4 quiring the person referred to in paragraph (1) to 

5 comply with a subpoena referred to in paragraph 

6 (1). 

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

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

9 as a contempt of court. 

10 (4) PROCESS.—Process in any proceeding 

11 under this subsection may be served in the United 

12 States judicial district in which the person being 

13 proceeded against resides or conducts business, or 

14 wherever the person may be found. 

15 SEC. 11. SUSPENSION OR TERMINATION. 

16 (a) MANDATORY SUSPENSION OR TERMINATION.— 

17 The Secretary shall suspend or terminate an order or a 

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

19 or provision of an order obstructs or does not tend to ef20 fectuate the purpose of this Act, or if the Secretary deter21 mines that the order or a provision of an order is not fa22 vored by persons voting in a referendum conducted under 

23 section 7. 

24 (b) IMPLEMENTATION OF SUSPENSION OR TERMI25 NATION.—If, as a result of a referendum conducted under 


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

2 approved, the Secretary shall— 

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

4 determination, suspend or terminate, as the case 

5 may be, collection of assessments under the order; 

6 and 

7 (2) as soon as practicable, suspend or termi8 nate, as the case may be, activities under the order 

9 in an orderly manner. 

10 SEC. 12. CONFIDENTIALITY. 

11 Nothing in this Act shall be construed to require the 

12 Board to disclose information or records under section 552 

13 of title 5, United States Code. 

14 SEC. 13. AMENDMENTS TO ORDERS. 

15 The provisions of this Act applicable to the order 

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

17 that section 8 shall not apply to an amendment. 

18 SEC. 14. EFFECT ON OTHER LAWS. 

19 This Act shall not affect or preempt any other Fed20 eral or State law authorizing research, education, and pro21 motion relating to concrete masonry products. 

22 SEC. 15. REGULATIONS. 

23 The Secretary may issue such regulations as may be 

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

25 the Secretary under this Act. 


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1 SEC. 16. LIMITATION ON EXPENDITURES FOR ADMINISTRA2 TIVE EXPENSES. 

3 Funds appropriated to carry out this Act may not 

4 be used for the payment of the expenses or expenditures 

5 of the Board in administering the order. 

Æ 


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