I 

115TH CONGRESS 

1ST SESSION H. R. 1046 

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 14, 2017 

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 2017’’. 


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1 SEC. 2. DECLARATION OF POLICY. 

2 (a) PURPOSE.—The purpose of this Act is to author3 ize the establishment of an orderly program for devel4 oping, financing, and carrying out an effective, contin5 uous, and coordinated program of research, education, and 

6 promotion, including funds for marketing and market re7 search activities, that is designed to— 

8 (1) strengthen the position of the concrete ma9 sonry products industry in the domestic market10 place; 

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

12 uses for concrete masonry products in the domestic 

13 marketplace; and 

14 (3) promote the use of concrete masonry prod15 ucts in construction and building. 

16 (b) LIMITATION.—Nothing in this Act may be con17 strued to provide for the control of production or otherwise 

18 limit the right of any person to manufacture concrete ma19 sonry products. 

20 SEC. 3. DEFINITIONS. 

21 For the purposes of this Act: 

22 (1) BLOCK MACHINE.—The term ‘‘block ma23 chine’’ means a piece of equipment that utilizes vi24 bration and compaction to form concrete masonry 

25 products. 


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

2 Concrete Masonry Products Board established under 

3 section 5. 

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

5 open space in the mold of a block machine capable 

6 of forming a single concrete masonry unit having 

7 nominal plan dimensions of 8 inches by 16 inches. 

8 (4) CONCRETE MASONRY PRODUCTS.—The 

9 term ‘‘concrete masonry products’’ refers to a broad10 er class of products, including concrete masonry 

11 units as well as hardscape products such as concrete 

12 pavers and segmental retaining wall units, manufac13 tured on a block machine using dry-cast concrete. 

14 (5) CONCRETE MASONRY UNIT.—The term 

15 ‘‘concrete masonry unit’’ means a concrete masonry 

16 product that is a manmade masonry unit having an 

17 actual width of 3 inches or greater and manufac18 tured from dry-cast concrete using a block machine. 

19 Such term includes concrete block and related con20 crete units used in masonry applications. 

21 (6) CONFLICT OF INTEREST.—The term ‘‘con22 flict of interest’’ means, with respect to a member 

23 or employee of the Board, a situation in which such 

24 member or employee has a direct or indirect finan25 cial or other interest in a person that performs a 


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1 service for, or enters into a contract with, for any2 thing of economic value. 

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

4 means the Department of Commerce. 

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

6 concrete’’ means a composite material that is com7 posed essentially of aggregates embedded in a bind8 ing medium composed of a mixture of cementitious 

9 materials (including hydraulic cement, pozzolans, or 

10 other cementitious materials) and water of such a 

11 consistency to maintain its shape after forming in a 

12 block machine. 

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

14 programs that will educate or communicate the ben15 efits of concrete masonry products in safe and envi16 ronmentally sustainable development, advancements 

17 in concrete masonry product technology and develop18 ment, and other information and programs designed 

19 to generate increased demand for commercial, resi20 dential, multifamily, and institutional projects using 

21 concrete masonry products and to generally enhance 

22 the image of concrete masonry products. 

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

24 cavities’’ means the cavities with which a block ma25 chine could be equipped. 


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1 (11) MACHINE CAVITIES IN OPERATION.—The 

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

3 machine cavities associated with a block machine 

4 that have produced concrete masonry units within 

5 the last 6 months of the date set for determining eli6 gibility and is fully operable and capable of pro7 ducing concrete masonry units. 

8 (12) MANUFACTURER.—The term ‘‘manufac9 turer’’ means any person engaged in the manufac10 turing of commercial concrete masonry products in 

11 the United States. 

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

13 unit’’ means a noncombustible building product in14 tended to be laid by hand or joined using mortar, 

15 grout, surface bonding, post-tensioning or some com16 bination of these methods. 

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

18 order issued under section 4. 

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

20 individual, group of individuals, partnership, cor21 poration, association, cooperative, or any other enti22 ty. 

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

24 means any action, including paid advertising, to ad25 vance the image and desirability of concrete masonry 


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1 products with the express intent of improving the 

2 competitive position and stimulating sales of con3 crete masonry products in the marketplace. 

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

5 studies testing the effectiveness of market develop6 ment and promotion efforts, studies relating to the 

7 improvement of concrete masonry products and new 

8 product development, and studies documenting the 

9 performance of concrete masonry. 

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

11 means the Secretary of Commerce. 

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

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

14 Columbia. 

15 SEC. 4. ISSUANCE OF ORDERS. 

16 (a) IN GENERAL.— 

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

18 procedures provided in subsection (b), shall issue or19 ders under this Act applicable to manufacturers of 

20 concrete masonry products. 

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

22 scope. 

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

24 shall be in effect at any one time. 

25 (b) PROCEDURES.— 


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1 (1) DEVELOPMENT OR RECEIPT OF PROPOSED

2 ORDER.—A proposed order with respect to the ge3 neric research, education, and promotion with re4 gards to concrete masonry products may be— 

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

6 or 

7 (B) requested by or submitted to the Sec8 retary by— 

9 (i) an existing national organization of 

10 concrete masonry product manufacturers; 

11 or 

12 (ii) any person that may be affected 

13 by the issuance of an order. 

14 (2) PUBLICATION OF PROPOSED ORDER.—If 

15 the Secretary determines that a proposed order re16 ceived in accordance with paragraph (1)(B) is con17 sistent with and will effectuate the purpose of this 

18 Act, the Secretary shall publish such proposed order 

19 in the Federal Register not later than 90 days after 

20 receiving the order, and give not less than 30 days 

21 notice and opportunity for public comment on the 

22 proposed order. 

23 (3) ISSUANCE OF ORDER.— 

24 (A) IN GENERAL.—After notice and oppor25 tunity for public comment are provided in acVerDate Sep 11 2014 01:44 Feb 22, 2017 Jkt 069200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1046.IH H1046

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1 cordance with paragraph (2), the Secretary 

2 shall issue the order, taking into consideration 

3 the comments received and including in the 

4 order such provisions as are necessary to ensure 

5 that the order is in conformity with this Act. 

6 (B) EFFECTIVE DATE.—If there is an af7 firmative vote in a referendum as provided in 

8 section 7, the Secretary shall issue the order 

9 and such order shall be effective not later than 

10 140 days after publication of the proposed 

11 order. 

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

13 time, amend an order. The provisions of this Act applica14 ble to an order shall be applicable to any amendment to 

15 an order. 

16 SEC. 5. REQUIRED TERMS IN ORDERS. 

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

18 shall contain the terms and provisions specified in this sec19 tion. 

20 (b) CONCRETE MASONRY PRODUCTS BOARD.— 

21 (1) ESTABLISHMENT AND MEMBERSHIP.— 

22 (A) ESTABLISHMENT.—The order shall 

23 provide for the establishment of a Concrete Ma24 sonry Products Board to carry out a program 


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1 of generic promotion, research, and education 

2 regarding concrete masonry products. 

3 (B) MEMBERSHIP.— 

4 (i) NUMBER OF MEMBERS.—The 

5 Board shall consist of not less than 15 and 

6 not more than 25 members. 

7 (ii) APPOINTMENT.—The members of 

8 the Board shall be appointed by the Sec9 retary from nominations submitted as pro10 vided in the order. 

11 (iii) COMPOSITION.—The Board shall 

12 consist of manufacturers. No employee of 

13 an industry trade organization exempt 

14 from tax under paragraph (3) or (6) of 

15 section 501(c) of the Internal Revenue 

16 Code of 1986 (26 U.S.C. 501(c)) rep17 resenting the concrete masonry industry or 

18 related industries shall serve as a member 

19 of the Board and no member of the Board 

20 may serve concurrently as an officer of the 

21 board of directors of a national concrete 

22 masonry products industry trade associa23 tion. Only two individuals from any single 

24 company or its affiliates may serve on the 

25 Board at any one time. 


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1 (2) DISTRIBUTION OF APPOINTMENTS.— 

2 (A) REPRESENTATION.—To ensure fair 

3 and equitable representation of the concrete 

4 masonry products industry, the composition of 

5 the Board shall reflect the geographical dis6 tribution of the manufacture of concrete ma7 sonry products in the United States, the types 

8 of concrete masonry products manufactured, 

9 and the range in size of manufacturers in the 

10 United States. 

11 (B) ADJUSTMENT IN BOARD REPRESENTA12 TION.—Three years after the assessment of 

13 concrete masonry products commences pursuant 

14 to an order, and at the end of each 3-year pe15 riod thereafter, the Board, subject to the review 

16 and approval of the Secretary, shall, if war17 ranted, recommend to the Secretary the re18 apportionment of the Board membership to re19 flect changes in the geographical distribution of 

20 the manufacture of concrete masonry products 

21 and the types of concrete masonry products 

22 manufactured. 

23 (3) NOMINATIONS PROCESS.—The Secretary 

24 may make appointments from nominations by manuVerDate Sep 11 2014 01:44 Feb 22, 2017 Jkt 069200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1046.IH H1046

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1 facturers pursuant to the method set forth in the 

2 order. 

3 (4) FAILURE TO APPOINT.—If the Secretary 

4 fails to make an appointment to the Board within 

5 60 days of receiving nominations for such appoint6 ment, the first nominee for such appointment shall 

7 be deemed appointed, unless the Secretary provides 

8 reasonable justification for the delay to the Board 

9 and to Congress and provides a reasonable date by 

10 which approval or disapproval will be made. 

11 (5) ALTERNATES.—The order shall provide for 

12 the selection of alternate members of the Board by 

13 the Secretary in accordance with procedures speci14 fied in the order. 

15 (6) TERMS.— 

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

17 alternates of the Board shall each serve for a 

18 term of 3 years, except that members and any 

19 alternates initially appointed to the Board shall 

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

21 years, as specified by the order. 

22 (B) LIMITATION ON CONSECUTIVE

23 TERMS.—A member or an alternate may serve 

24 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 (7) 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 (8) 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 including 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 generic research, education, 

9 and promotion programs and projects relating to 

10 concrete masonry products, and to pay the costs of 

11 such programs and projects with assessments col12 lected under section 6; 

13 (10) subject to subsection (e), to enter into con14 tracts or agreements to develop and carry out pro15 grams or projects of research, education, and pro16 motion relating to concrete masonry products; 

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

18 reflect the actions and transactions of the Board, 

19 and promptly report minutes of each Board meeting 

20 to the Secretary; 

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

22 Secretary complaints of violations of the order; 

23 (13) to furnish the Secretary with such infor24 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 to permit the Secretary or the Sec6 retary’s representative to attend the meetings. 

7 (d) PROGRAMS AND PROJECTS; BUDGETS; EX8 PENSES.— 

9 (1) PROGRAMS AND PROJECTS.— 

10 (A) IN GENERAL.—The order shall require 

11 the Board to submit to the Secretary for ap12 proval any program or project of research, edu13 cation, or promotion relating to concrete ma14 sonry products. 

15 (B) STATEMENT REQUIRED.—Any edu16 cational or promotional activity undertaken with 

17 funds provided by the Board shall include a 

18 statement that such activities were supported in 

19 whole or in part by the Board. 

20 (2) BUDGETS.— 

21 (A) SUBMISSION.—The order shall require 

22 the Board to submit to the Secretary for ap23 proval a budget of the anticipated expenses and 

24 disbursements of the Board in the implementa25 tion of the order, including the projected costs 


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1 of concrete masonry products research, edu2 cation, and promotion programs and projects. 

3 (B) TIMING.—The budget shall be sub4 mitted before the beginning of a fiscal year and 

5 as frequently as may be necessary after the be6 ginning of the fiscal year. 

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

8 approve or reject a budget within 60 days of re9 ceipt, such budget shall be deemed approved, 

10 unless the Secretary provides to the Board and 

11 to Congress, in writing, reasonable justification 

12 for the delay and provides a reasonable date by 

13 which approval or disapproval will be made. 

14 (3) ADMINISTRATIVE EXPENSES.— 

15 (A) INCURRING EXPENSES.—The Board 

16 may incur the expenses described in paragraph 

17 (2) and other expenses for the administration, 

18 maintenance, and functioning of the Board as 

19 authorized by the Secretary. 

20 (B) PAYMENT OF EXPENSES.—Expenses 

21 incurred under subparagraph (A) shall be paid 

22 by the Board using assessments collected under 

23 section 6, earnings obtained from assessments, 

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1 rowed by the Board shall be expended only for 

2 startup costs and capital outlays. 

3 (C) LIMITATION ON SPENDING.—For fiscal 

4 years beginning 3 or more years after the date 

5 of the establishment of the Board, the Board 

6 may not expend for administration (except for 

7 reimbursement to the Secretary required under 

8 subparagraph (D)), maintenance, and func9 tioning of the Board in a fiscal year an amount 

10 that exceeds 10 percent of the assessment and 

11 other income received by the Board for the fis12 cal year. 

13 (D) REIMBURSEMENT OF SECRETARY.— 

14 The order shall require that the Secretary be 

15 reimbursed by the Board from assessments for 

16 all expenses incurred by the Secretary in the 

17 implementation, administration, and supervision 

18 of the order, including all referenda costs in19 curred in connection with the order. 

20 (e) CONTRACTS AND AGREEMENTS.— 

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

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

23 (A) enter into contracts and agreements to 

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1 crete masonry products, including contracts and 

2 agreements with manufacturer associations or 

3 other entities as considered appropriate by the 

4 Secretary; 

5 (B) enter into contracts and agreements 

6 for administrative services; and 

7 (C) pay the cost of approved generic re8 search, education, and promotion programs and 

9 projects using assessments collected under sec10 tion 6, earnings obtained from assessments, and 

11 other income of the Board. 

12 (2) REQUIREMENTS.—Each contract or agree13 ment shall provide that any person who enters into 

14 the contract or agreement with the Board shall— 

15 (A) develop and submit to the Board a 

16 proposed program or project together with a 

17 budget that specifies the cost to be incurred to 

18 carry out the program or project; 

19 (B) keep accurate records of all trans20 actions relating to the contract or agreement; 

21 (C) account for funds received and ex22 pended in connection with the contract or 

23 agreement; 


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1 (D) make periodic reports to the Board of 

2 activities conducted under the contract or 

3 agreement; and 

4 (E) make such other reports as the Board 

5 or the Secretary considers relevant. 

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

7 fails to approve or reject a contract or agreement 

8 entered into under paragraph (1) within 60 days of 

9 receipt, the contract or agreement shall be deemed 

10 approved, unless the Secretary provides to the Board 

11 and to Congress, in writing, reasonable justification 

12 for the delay and provides a reasonable date by 

13 which approval or disapproval will be made. 

14 (f) BOOKS AND RECORDS OF BOARD.— 

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

16 Board to— 

17 (A) maintain such books and records 

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

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

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


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

3 the control, of the Board. 

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

5 to have— 

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

8 each fiscal year; and 

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

11 (g) PROHIBITED ACTIVITIES.— 

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

13 the Board shall not engage in any program or 

14 project to, nor shall any funds received by the Board 

15 under this Act be used to— 

16 (A) influence legislation, elections, or gov17 ernmental action; 

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

19 conflict of interest; 

20 (C) engage in advertising that is false or 

21 misleading; 

22 (D) engage in any promotion, research, or 

23 education that would be disparaging to other 

24 construction materials; or 


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1 (E) engage in any promotion or project 

2 that would benefit any individual manufacturer. 

3 (2) EXCEPTIONS.—Paragraph (1) does not pre4 clude— 

5 (A) the development and recommendation 

6 of amendments to the order; 

7 (B) the communication to appropriate gov8 ernment officials of information relating to the 

9 conduct, implementation, or results of research, 

10 education, and promotion activities under the 

11 order except communications described in para12 graph (1)(A); or 

13 (C) any lawful action designed to market 

14 concrete masonry products directly to a foreign 

15 government or political subdivision of a foreign 

16 government. 

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

18 the Board to provide for the independent evaluation of all 

19 research, education, and promotion programs or projects 

20 undertaken under the order, beginning 5 years after the 

21 date of enactment of this Act and every 3 years thereafter. 

22 The Board shall submit to the Secretary and make avail23 able to the public the results of each such evaluation. 

24 (i) OBJECTIVES.—The Board shall establish annual 

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1 formance metrics for each fiscal year subject to approval 

2 by the Secretary. 

3 (j) BIENNIAL REPORT.—Every 2 years the Board 

4 shall prepare and make publicly available a comprehensive 

5 and detailed report that includes an identification and de6 scription of all programs and projects undertaken by the 

7 Board during the previous 2 years as well as those planned 

8 for the subsequent 2 years and detail the allocation or 

9 planned allocation of Board resources for each such pro10 gram or project. Such report shall also include— 

11 (1) the Board’s overall financial condition; 

12 (2) a summary of the amounts obligated or ex13 pended during the 2 preceding fiscal years; and 

14 (3) a description of the extent to which the 

15 Board’s objectives were met according to the metrics 

16 required under subsection (i). 

17 (k) BOOKS AND RECORDS OF PERSONS COVERED BY

18 ORDER.— 

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

20 manufacturers shall— 

21 (A) maintain records sufficient to ensure 

22 compliance with the order and regulations; and 

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


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1 hours, for inspection by employees or agents of 

2 the Board or the Department. 

3 (2) TIME REQUIREMENT.—Any record required 

4 to be maintained under paragraph (1) shall be main5 tained for such time period as the Secretary may 

6 prescribe. 

7 (3) CONFIDENTIALITY OF INFORMATION.— 

8 (A) IN GENERAL.—Except as otherwise 

9 provided in this paragraph, trade secrets and 

10 commercial or financial information that is 

11 privileged or confidential reported to, or other12 wise obtained by the Board or the Secretary (or 

13 any representative of the Board or the Sec14 retary) under this Act shall not be disclosed by 

15 any officers, employees, and agents of the De16 partment or the Board. 

17 (B) SUITS AND HEARINGS.—Information 

18 referred to in subparagraph (A) may be dis19 closed only if— 

20 (i) the Secretary considers the infor21 mation relevant; and 

22 (ii) the information is revealed in a 

23 judicial proceeding or administrative hear24 ing brought at the direction or on the re25 quest of the Secretary or to which the SecVerDate Sep 11 2014 01:44 Feb 22, 2017 Jkt 069200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H1046.IH H1046

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1 retary or any officer of the Department is 

2 a party. 

3 (C) GENERAL STATEMENTS AND PUBLICA4 TIONS.—This paragraph does not prohibit— 

5 (i) the issuance of general statements 

6 based on reports or on information relating 

7 to a number of persons subject to an order 

8 if the statements do not identify the infor9 mation furnished by any person; or 

10 (ii) the publication, by direction of the 

11 Secretary, of the name of any person vio12 lating any order and a statement of the 

13 particular provisions of the order violated 

14 by the person. 

15 (D) PENALTY.—Any officer, employee, or 

16 agent of the Department of Commerce or any 

17 officer, employee, or agent of the Board who 

18 willfully violates this paragraph shall be fined 

19 not more than $1,000 and imprisoned for not 

20 more than 1 year, or both. 

21 (4) WITHHOLDING INFORMATION.—This sub22 section does not authorize the withholding of infor23 mation from Congress. 


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1 SEC. 6. ASSESSMENTS. 

2 (a) ASSESSMENTS.—The order shall provide that as3 sessments shall be paid by a manufacturer if the manufac4 turer has manufactured concrete masonry products during 

5 a period of at least 180 days prior to the date the assess6 ment is to be remitted. 

7 (b) COLLECTION.— 

8 (1) IN GENERAL.—Assessments required under 

9 the order shall be remitted by the manufacturer to 

10 the Board in the manner prescribed by the order. 

11 (2) TIMING.—The order shall provide that as12 sessments required under the order shall be remitted 

13 to the Board not less frequently than quarterly. 

14 (3) RECORDS.—As part of the remittance of as15 sessments, manufacturers shall identify the total 

16 amount due in assessments on all sales receipts, in17 voices or other commercial documents of sale as a 

18 result of the sale of concrete masonry units in a 

19 manner as prescribed by the Board to ensure com20 pliance with the order. 

21 (c) ASSESSMENT RATES.—With respect to assess22 ment rates, the order shall contain the following terms: 

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

24 concrete masonry products shall be $0.01 per con25 crete masonry unit sold. 

26 (2) CHANGES IN THE RATE.— 


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1 (A) AUTHORITY TO CHANGE RATE.—The 

2 Board shall have the authority to change the 

3 assessment rate. A two-thirds majority of voting 

4 members of the Board shall be required to ap5 prove a change in the assessment rate. 

6 (B) LIMITATION ON INCREASES.—An in7 crease or decrease in the assessment rate with 

8 respect to concrete masonry products may not 

9 exceed $0.01 per concrete masonry unit sold. 

10 (C) MAXIMUM RATE.—The assessment 

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

12 masonry unit. 

13 (D) LIMITATION ON FREQUENCY OF

14 CHANGES.—The assessment rate may not be in15 creased or decreased more than once annually. 

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

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

18 charges may be levied on each person subject to the 

19 order who fails to remit an assessment in accordance 

20 with subsection (b). 

21 (2) RATE.—The rate for late-payment and in22 terest charges shall be specified by the Secretary. 

23 (e) INVESTMENT OF ASSESSMENTS.—Pending dis24 bursement of assessments under a budget approved by the 


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1 Secretary, the Board may invest assessments collected 

2 under this section in— 

3 (1) obligations of the United States or any 

4 agency of the United States; 

5 (2) general obligations of any State or any po6 litical subdivision of a State; 

7 (3) interest-bearing accounts or certificates of 

8 deposit of financial institutions that are members of 

9 the Federal Reserve System; or 

10 (4) obligations fully guaranteed as to principal 

11 and interest by the United States. 

12 (f) ASSESSMENT FUNDS FOR REGIONAL INITIA13 TIVES.— 

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

15 no less than 50 percent of the assessments (less ad16 ministration expenses) paid by a manufacturer shall 

17 be used to support research, education, and pro18 motion programs and projects in support of the geo19 graphic region of the manufacturer. 

20 (2) GEOGRAPHIC REGIONS.—The order shall 

21 provide for the following geographic regions: 

22 (A) Region I shall comprise Connecticut, 

23 Delaware, the District of Columbia, Maine, 

24 Maryland, Massachusetts, New Hampshire, 


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1 New Jersey, New York, Pennsylvania, Rhode 

2 Island, Vermont, and West Virginia. 

3 (B) Region II shall comprise Alabama, 

4 Florida, Georgia, Mississippi, North Carolina, 

5 South Carolina, Tennessee, and Virginia. 

6 (C) Region III shall comprise Illinois, Indi7 ana, Iowa, Kentucky, Michigan, Minnesota, Ne8 braska, North Dakota, Ohio, South Dakota, 

9 and Wisconsin. 

10 (D) Region IV shall comprise Arizona, Ar11 kansas, Kansas, Louisiana, Missouri, New Mex12 ico, Oklahoma, and Texas. 

13 (E) Region V shall comprise Alaska, Cali14 fornia, Colorado, Hawaii, Idaho, Montana, Ne15 vada, Oregon, Utah, Washington, and Wyo16 ming. 

17 (3) ADJUSTMENT OF GEOGRAPHIC REGIONS.— 

18 The order shall provide that the Secretary may, 

19 upon recommendation of the Board, modify the com20 position of the geographic regions described in para21 graph (2). 

22 SEC. 7. REFERENDA. 

23 (a) INITIAL REFERENDUM.— 

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

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1 tive date of the order issued under section 4, the 

2 Secretary shall conduct a referendum among manu3 facturers eligible under subsection (b)(2) subject to 

4 assessments under section 6. 

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

6 shall become effective only if the Secretary deter7 mines that the order has been approved by a major8 ity of manufacturers voting who also represent a 

9 majority of the machine cavities in operation of 

10 those manufacturers voting in the referendum. 

11 (b) VOTES PERMITTED.— 

12 (1) IN GENERAL.—Each manufacturer eligible 

13 to vote in a referendum conducted under this section 

14 shall be entitled to cast one vote. 

15 (2) ELIGIBILITY.—For purposes of paragraph 

16 (1), a manufacturer shall be considered to be eligible 

17 to vote if the manufacturer has manufactured con18 crete masonry products during a period of at least 

19 180 days prior to the first day of the period during 

20 which voting in the referendum will occur. 

21 (c) MANNER OF CONDUCTING REFERENDA.— 

22 (1) IN GENERAL.—Referenda conducted pursu23 ant to this section shall be conducted in a manner 

24 determined by the Secretary. 


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1 (2) ADVANCE REGISTRATION.—A manufacturer 

2 who chooses to vote in any referendum conducted 

3 under this section shall register with the Secretary 

4 prior to the voting period, after receiving notice from 

5 the Secretary concerning the referendum under 

6 paragraph (4). 

7 (3) VOTING.—The Secretary shall establish pro8 cedures for voting in any referendum conducted 

9 under this section. The ballots and other information 

10 or reports that reveal or tend to reveal the identity 

11 or vote of voters shall be strictly confidential. 

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

13 referendum is conducted under this section with re14 spect to an order, the Secretary shall notify all man15 ufacturers, in such a manner as determined by the 

16 Secretary, of the period during which voting in the 

17 referendum will occur. The notice shall explain any 

18 registration and voting procedures established under 

19 this subsection. 

20 (d) SUBSEQUENT REFERENDA.—If an order is ap21 proved in a referendum conducted under subsection (a), 

22 the Secretary shall conduct a subsequent referendum— 

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

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


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1 ascertain whether eligible manufacturers favor sus2 pension, termination, or continuance of the order; or 

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

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

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

6 percent or more of the total number of persons eligi7 ble to vote under subsection (b). 

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

9 of a referendum conducted under subsection (d), the Sec10 retary determines that suspension or termination of the 

11 order is favored by a majority of all votes cast in the ref12 erendum as provided in subsection (a)(2), the Secretary 

13 shall— 

14 (1) not later than 180 days after the ref15 erendum, suspend or terminate, as appropriate, col16 lection of assessments under the order; and 

17 (2) suspend or terminate, as appropriate, pro18 grams and projects under the order as soon as prac19 ticable and in an orderly manner. 

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

21 under an order with respect to which a referendum is con22 ducted under this section shall reimburse the Secretary 

23 from assessments for any expenses incurred by the Sec24 retary to conduct the referendum. 


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1 SEC. 8. PETITION AND REVIEW. 

2 (a) PETITION.— 

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

4 issued under this Act may file with the Secretary a 

5 petition— 

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

7 the order, or any obligation imposed in connec8 tion with the order, is not established in accord9 ance with law; and 

10 (B) requesting a modification of the order 

11 or an exemption from the order. 

12 (2) HEARING.—The Secretary shall give the pe13 titioner an opportunity for a hearing on the petition, 

14 in accordance with regulations issued by the Sec15 retary. 

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

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

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

19 (b). 

20 (4) LIMITATION ON PETITION.—Any petition 

21 filed under this subsection challenging an order, any 

22 provision of the order, or any obligation imposed in 

23 connection with the order, shall be filed not less than 

24 2 years after the effective date of the order, provi25 sion, or obligation subject to challenge in the peti26 tion. 


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1 (b) REVIEW.— 

2 (1) COMMENCEMENT OF ACTION.—The district 

3 courts of the United States in any district in which 

4 a person who is a petitioner under subsection (a) re5 sides or conducts business shall have jurisdiction to 

6 review the ruling of the Secretary on the petition of 

7 the person, if a complaint requesting the review is 

8 filed no later than 30 days after the date of the 

9 entry of the ruling by the Secretary. 

10 (2) PROCESS.—Service of process in pro11 ceedings under this subsection shall be conducted in 

12 accordance with the Federal Rules of Civil Proce13 dure. 

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

15 under this subsection determines that the ruling of 

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

17 accordance with law, the court shall remand the 

18 matter to the Secretary with directions— 

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

20 determine to be in accordance with law; or 

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

22 opinion of the court, the law requires. 

23 (c) ENFORCEMENT.—The pendency of proceedings 

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


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1 delay the Attorney General or the Secretary from obtain2 ing relief under section 9. 

3 SEC. 9. ENFORCEMENT. 

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

5 States shall have jurisdiction to enforce, and to prevent 

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

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

8 (b) REFERRAL TO ATTORNEY GENERAL.—A civil ac9 tion authorized to be brought under this section shall be 

10 referred to the Attorney General of the United States for 

11 appropriate action. 

12 (c) CIVIL PENALTIES AND ORDERS.— 

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

14 violates an order or regulation issued by the Sec15 retary under this Act may be assessed by the Sec16 retary a civil penalty of not more than $5,000 for 

17 each violation. 

18 (2) SEPARATE OFFENSE.—Each violation and 

19 each day during which there is a failure to comply 

20 with an order or regulation issued by the Secretary 

21 shall be considered to be a separate offense. 

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

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

24 issue an order requiring a person to cease and desist 

25 from violating the order or regulation. 


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

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

3 the Secretary under this subsection unless the Sec4 retary provides notice and an opportunity for a hear5 ing on the record with respect to the violation. 

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

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

8 by the Secretary shall be final and conclusive unless 

9 the person against whom the order is issued files an 

10 appeal from the order with the appropriate district 

11 court of the United States. 

12 (d) ADDITIONAL REMEDIES.—The remedies provided 

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

14 other remedies that may be available. 

15 SEC. 10. INVESTIGATION AND POWER TO SUBPOENA. 

16 (a) INVESTIGATIONS.—The Secretary may conduct 

17 such investigations as the Secretary considers necessary 

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

19 whether any person has engaged or is engaging in any 

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

21 or regulation issued under this Act. 

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

23 (1) INVESTIGATIONS.—For the purpose of con24 ducting an investigation under subsection (a), the 

25 Secretary may administer oaths and affirmations, 


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1 subpoena witnesses, compel the attendance of wit2 nesses, take evidence, and require the production of 

3 any records that are relevant to the inquiry. The 

4 production of the records may be required from any 

5 place in the United States. 

6 (2) ADMINISTRATIVE HEARINGS.—For the pur7 pose of an administrative hearing held under section 

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

9 administer oaths and affirmations, subpoena wit10 nesses, compel the attendance of witnesses, take evi11 dence, and require the production of any records 

12 that are relevant to the inquiry. The attendance of 

13 witnesses and the production of the records may be 

14 required from any place in the United States. 

15 (c) AID OF COURTS.— 

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

17 or refusal to obey a subpoena issued under sub18 section (b) to, any person, the Secretary may invoke 

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

20 jurisdiction of which the investigation or proceeding 

21 is conducted, or where the person resides or con22 ducts business, in order to enforce a subpoena issued 

23 under subsection (b). 

24 (2) ORDER.—The court may issue an order re25 quiring the person referred to in paragraph (1) to 


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1 comply with a subpoena referred to in paragraph 

2 (1). 

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

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

5 as a contempt of court. 

6 (4) PROCESS.—Process in any proceeding 

7 under this subsection may be served in the United 

8 States judicial district in which the person being 

9 proceeded against resides or conducts business, or 

10 wherever the person may be found. 

11 SEC. 11. SUSPENSION OR TERMINATION. 

12 (a) MANDATORY SUSPENSION OR TERMINATION.— 

13 The Secretary shall suspend or terminate an order or a 

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

15 or provision of an order obstructs or does not tend to ef16 fectuate the purpose of this Act, or if the Secretary deter17 mines that the order or a provision of an order is not fa18 vored by a majority of all votes cast in the referendum 

19 as provided in section 7(a)(2). 

20 (b) IMPLEMENTATION OF SUSPENSION OR TERMI21 NATION.—If, as a result of a referendum conducted under 

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

23 approved, the Secretary shall— 

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

25 determination, suspend or terminate, as the case 


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1 may be, collection of assessments under the order; 

2 and 

3 (2) as soon as practicable, suspend or termi4 nate, as the case may be, activities under the order 

5 in an orderly manner. 

6 SEC. 12. AMENDMENTS TO ORDERS. 

7 The provisions of this Act applicable to the order 

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

9 that section 8 shall not apply to an amendment. 

10 SEC. 13. EFFECT ON OTHER LAWS. 

11 This Act shall not affect or preempt any other Fed12 eral or State law authorizing research, education, and pro13 motion relating to concrete masonry products. 

14 SEC. 14. REGULATIONS. 

15 The Secretary may issue such regulations as may be 

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

17 the Secretary under this Act. 

18 SEC. 15. LIMITATION ON EXPENDITURES FOR ADMINISTRA19 TIVE EXPENSES. 

20 Funds appropriated to carry out this Act may not 

21 be used for the payment of the expenses or expenditures 

22 of the Board in administering the order. 


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1 SEC. 16. LIMITATIONS ON OBLIGATION OF FUNDS. 

2 (a) IN GENERAL.—In each fiscal year of the covered 

3 period, the Board may not obligate an amount greater 

4 than the sum of— 

5 (1) 73 percent of the amount of assessments es6 timated to be collected under section 6 in such fiscal 

7 year; 

8 (2) 73 percent of the amount of assessments 

9 actually collected under section 6 in the most recent 

10 fiscal year for which an audit report has been sub11 mitted under section 5(f)(2)(B) as of the beginning 

12 of the fiscal year for which the amount that may be 

13 obligated is being determined, less the estimate 

14 made pursuant to paragraph (1) for such most re15 cent fiscal year; and 

16 (3) amounts permitted in preceding fiscal years 

17 to be obligated pursuant to this subsection that have 

18 not been obligated. 

19 (b) EXCESS AMOUNTS DEPOSITED IN ESCROW AC20 COUNT.—Assessments collected under section 6 in excess 

21 of the amount permitted to be obligated under subsection 

22 (a) in a fiscal year shall be deposited in an escrow account 

23 for the duration of the covered period. 

24 (c) TREATMENT OF AMOUNTS IN ESCROW AC25 COUNT.—During the covered period, the Board may not 

26 obligate, expend, or borrow against amounts required 


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1 under subsection (b) to be deposited in the escrow account. 

2 Any interest earned on such amounts shall be deposited 

3 in the escrow account and shall be unavailable for obliga4 tion for the duration of the covered period. 

5 (d) RELEASE OF AMOUNTS IN ESCROW ACCOUNT.— 

6 After the covered period, the Board may withdraw and 

7 obligate in any fiscal year an amount in the escrow account that does not exceed 1 8 ⁄5 of the amount in the escrow 

9 account on the last day of the covered period. 

10 (e) SPECIAL RULE FOR ESTIMATES FOR PARTICULAR

11 FISCAL YEARS.— 

12 (1) RULE.—For purposes of subsection (a)(1), 

13 the amount of assessments estimated to be collected 

14 under section 6 in a fiscal year specified in para15 graph (2) shall be equal to 62 percent of the amount 

16 of assessments actually collected under such section 

17 in the most recent fiscal year for which an audit re18 port has been submitted under section 5(f)(2)(B) as 

19 of the beginning of the fiscal year for which the 

20 amount that may be obligated is being determined. 

21 (2) FISCAL YEARS SPECIFIED.—The fiscal 

22 years specified in this paragraph are the 9th and 

23 10th fiscal years that begin on or after the date of 

24 the enactment of this Act. 


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1 (f) COVERED PERIOD DEFINED.—In this section, the 

2 term ‘‘covered period’’ means the period that begins on 

3 the date of the enactment of this Act and ends on the 

4 last day of the 11th fiscal year that begins on or after 

5 such date of enactment. 

6 SEC. 17. STUDY AND REPORT BY THE GOVERNMENT AC7 COUNTABILITY OFFICE. 

8 Not later than 5 years and 8 years after the date 

9 of enactment of this Act, the Comptroller General of the 

10 United States shall prepare a study and submit to Con11 gress and the Secretary a report examining— 

12 (1) how the Board spends assessments col13 lected; 

14 (2) the extent to which the Board’s reported ac15 tivities help achieve its annual objectives; 

16 (3) any changes in demand for concrete ma17 sonry products relative to other building materials; 

18 (4) any impact of the Board’s activities on the 

19 market share of competing products; 

20 (5) any impact of the Board’s activities on the 

21 overall size of the market for building products; 

22 (6) any impact of the Board’s activities on the 

23 total number of concrete-masonry-related jobs, in24 cluding manufacturing, sales, and installation; 


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1 (7) any significant effects of the Board’s activi2 ties on downstream purchasers of concrete masonry 

3 products and real property into which concrete ma4 sonry products are incorporated; 

5 (8) effects on prices of concrete masonry prod6 ucts as a result of the Board’s activities; 

7 (9) the cost to the Federal Government of an 

8 increase in concrete masonry product prices, if any, 

9 as a result of the program established by this Act; 

10 (10) the extent to which key statutory require11 ments are met; 

12 (11) the extent and strength of Federal over13 sight of the program established by this Act; 

14 (12) the appropriateness of administering the 

15 program from within the Office of the Secretary of 

16 Commerce and the appropriateness of administering 

17 the program from within any division of the Depart18 ment of Commerce, including whether the Depart19 ment has the expertise, knowledge, or other capabili20 ties necessary to adequately administer the program; 

21 and 

22 (13) any other topic that the Comptroller Gen23 eral considers appropriate. 


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1 SEC. 18. STUDY AND REPORT BY THE DEPARTMENT OF 

2 COMMERCE. 

3 Not later than 3 years after the date of enactment 

4 of this Act, the Secretary shall prepare a study and submit 

5 to Congress a report examining the appropriateness and 

6 effectiveness of applying the commodity check-off program 

7 model (such as those programs established under sub8 chapter II of chapter 101 of title 7, United States Code) 

9 to a nonagricultural industry, taking into account the pro10 gram established by this Act and any other check-off pro11 gram involving a nonagricultural industry. 

Æ 


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