II 
114TH CONGRESS 
2D SESSION 
H. R. 985 
IN THE SENATE OF THE UNITED STATES 
NOVEMBER 15, 2016 
Received 
AN ACT 
To enable concrete masonry products manufacturers to estab-
lish, finance, and carry out a coordinated program of 
research, education, and promotion to improve, maintain, 
and develop markets for concrete masonry products. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Concrete Masonry 
Products Research, Education, and Promotion Act of 
2015’’. 
SEC. 2. DECLARATION OF POLICY. 
(a) PURPOSE.—The purpose of this Act is to author-
ize the establishment of an orderly program for devel-
oping, financing, and carrying out an effective, contin-
uous, and coordinated program of research, education, and 
promotion, including funds for marketing and market re-
search activities, that is designed to— 
(1) strengthen the position of the concrete ma-
sonry products industry in the domestic market-
place; 
(2) maintain, develop, and expand markets and 
uses for concrete masonry products in the domestic 
marketplace; and 
(3) promote the use of concrete masonry prod-
ucts in construction and building. 
(b) LIMITATION.—Nothing in this Act may be con-
strued to provide for the control of production or otherwise 
limit the right of any person to manufacture concrete ma-
sonry products. 
SEC. 3. DEFINITIONS. 
For the purposes of this Act: 
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(1) BLOCK
MACHINE.—The term ‘‘block ma-
chine’’ means a piece of equipment that utilizes vi-
bration and compaction to form concrete masonry 
products. 
(2) BOARD.—The term ‘‘Board’’ means the 
Concrete Masonry Products Board established under 
section 5. 
(3) CAVITY.—The term ‘‘cavity’’ means the 
open space in the mold of a block machine capable 
of forming a single concrete masonry unit having 
nominal plan dimensions of 8 inches by 16 inches. 
(4) COMMERCE.—The term ‘‘commerce’’ in-
cludes interstate, foreign, and intrastate commerce. 
(5) 
CONCRETE
MASONRY
PRODUCTS.—The 
term ‘‘concrete masonry products’’ refers to a broad-
er class of products, including concrete masonry 
units as well as hardscape products such as concrete 
pavers and segmental retaining wall units, manufac-
tured on a block machine using dry-cast concrete. 
(6) CONCRETE
MASONRY
UNIT.—The term 
‘‘concrete masonry unit’’ means a concrete masonry 
product that is a manmade masonry unit having an 
actual width of 3 inches or greater and manufac-
tured from dry-cast concrete using a block machine. 
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Such term includes concrete block and related con-
crete units used in masonry applications. 
(7) CONFLICT OF INTEREST.—The term ‘‘con-
flict of interest’’ means, with respect to a member 
or employee of the Board, a situation in which such 
member or employee has a direct or indirect finan-
cial or other interest in a person that performs a 
service for, or enters into a contract with, for any-
thing of economic value. 
(8) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Commerce. 
(9) DRY-CAST CONCRETE.—The term ‘‘dry-cast 
concrete’’ means a composite material that is com-
posed essentially of aggregates embedded in a bind-
ing medium composed of a mixture of cementitious 
materials (including hydraulic cement, pozzolans, or 
other cementitious materials) and water of such a 
consistency to maintain its shape after forming in a 
block machine. 
(10) 
EDUCATION.—The 
term 
‘‘education’’ 
means programs that will educate or communicate 
the benefits of concrete masonry products in safe 
and environmentally sustainable development, ad-
vancements in concrete masonry product technology 
and development, and other information and pro-
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grams designed to generate increased demand for 
commercial, residential, multi-family, and institu-
tional projects using concrete masonry products and 
to generally enhance the image of concrete masonry 
products. 
(11) MACHINE CAVITIES.—The term ‘‘machine 
cavities’’ means the cavities with which a block ma-
chine could be equipped. 
(12) MACHINE CAVITIES IN OPERATION.—The 
term ‘‘machine cavities in operation’’ means those 
machine cavities associated with a block machine 
that have produced concrete masonry units within 
the last 6 months of the date set for determining eli-
gibility and is fully operable and capable of pro-
ducing concrete masonry units. 
(13) MANUFACTURER.—The term ‘‘manufac-
turer’’ means any person engaged in the manufac-
turing of commercial concrete masonry products in 
the United States. 
(14) MASONRY
UNIT.—The term ‘‘masonry 
unit’’ means a noncombustible building product in-
tended to be laid by hand or joined using mortar, 
grout, surface bonding, post-tensioning or some com-
bination of these methods. 
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(15) ORDER.—The term ‘‘order’’ means an 
order issued under section 4. 
(16) PERSON.—The term ‘‘person’’ means any 
individual, group of individuals, partnership, cor-
poration, association, cooperative, or any other enti-
ty. 
(17) 
PROMOTION.—The 
term 
‘‘promotion’’ 
means any action, including paid advertising, to ad-
vance the image and desirability of concrete masonry 
products with the express intent of improving the 
competitive position and stimulating sales of con-
crete masonry products in the marketplace. 
(18) RESEARCH.—The term ‘‘research’’ means 
studies testing the effectiveness of market develop-
ment and promotion efforts, studies relating to the 
improvement of concrete masonry products and new 
product development, and studies documenting the 
performance of concrete masonry. 
(19) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Commerce. 
(20) UNITED
STATES.—The term ‘‘United 
States’’ means the several States and the District of 
Columbia. 
SEC. 4. ISSUANCE OF ORDERS. 
(a) IN GENERAL.— 
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(1) ISSUANCE.—The Secretary, subject to the 
procedures provided in subsection (b), shall issue or-
ders under this Act applicable to manufacturers of 
concrete masonry products. 
(2) SCOPE.—Any order shall be national in 
scope. 
(3) ONE
ORDER.—Not more than one order 
shall be in effect at any one time. 
(b) PROCEDURES.— 
(1) DEVELOPMENT OR RECEIPT OF PROPOSED 
ORDER.—A proposed order with respect to the ge-
neric research, education, and promotion with re-
gards to concrete masonry products may be— 
(A) proposed by the Secretary at any time; 
or 
(B) requested by or submitted to the Sec-
retary by— 
(i) an existing national organization of 
concrete masonry product manufacturers; 
or 
(ii) any person that may be affected 
by the issuance of an order. 
(2) PUBLICATION
OF
PROPOSED
ORDER.—If 
the Secretary determines that a proposed order re-
ceived in accordance with paragraph (1)(B) is con-
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SEC. 5. REQUIRED TERMS IN ORDERS. 
(a) IN GENERAL.—Any order issued under this Act 
shall contain the terms and provisions specified in this sec-
tion. 
(b) CONCRETE MASONRY PRODUCTS BOARD.— 
(1) ESTABLISHMENT AND MEMBERSHIP.— 
(A) ESTABLISHMENT.—The order shall 
provide for the establishment of a Concrete Ma-
sonry Products Board to carry out a program 
of generic promotion, research, and education 
regarding concrete masonry products. 
(B) MEMBERSHIP.— 
(i) 
NUMBER
OF
MEMBERS.—The 
board shall consist of not less than 15 and 
not more than 25 members. 
(ii) APPOINTMENT.—The members of 
the Board shall be appointed by the Sec-
retary from nominations submitted as pro-
vided in the order. 
(iii) COMPOSITION.—The Board shall 
consist of manufacturers. No employee of 
an industry trade organization exempt 
from tax under paragraphs (3) or (6) of 
section 501(c) of the Internal Revenue 
Code of 1986 (26 U.S.C. 501(c)) rep-
resenting the concrete masonry industry or 
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related industries shall serve as a member 
of the Board and no member of the Board 
may serve concurrently as an officer of the 
board of directors of a national concrete 
masonry products industry trade associa-
tion. Only two individuals from any single 
company or its affiliates may serve on the 
Board at any one time. 
(2) DISTRIBUTION OF APPOINTMENTS.— 
(A) REPRESENTATION.—To ensure fair 
and equitable representation of the concrete 
masonry products industry, the composition of 
the Board shall reflect the geographical dis-
tribution of the manufacture of concrete ma-
sonry products in the United States, the types 
of concrete masonry products manufactured, 
and the range in size of manufacturers in the 
United States. 
(B) ADJUSTMENT IN BOARD REPRESENTA-
TION.—Three years after the assessment of 
concrete masonry products commences pursuant 
to an order, and at the end of each 3-year pe-
riod thereafter, the Board, subject to the review 
and approval of the Secretary, shall, if war-
ranted, recommend to the Secretary the re-
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apportionment of the Board membership to re-
flect changes in the geographical distribution of 
the manufacture of concrete masonry products 
and the types of concrete masonry products 
manufactured. 
(3) NOMINATIONS
PROCESS.—The Secretary 
may make appointments from nominations by manu-
facturers pursuant to the method set forth in the 
order. 
(4) FAILURE
TO
APPOINT.—If the Secretary 
fails to make an appointment to the Board within 
60 days of receiving nominations for such appoint-
ment, the first nominee for such appointment shall 
be deemed appointed, unless the Secretary provides 
reasonable justification for the delay to the Board 
and to Congress and provides a reasonable date by 
which approval or disapproval will be made. 
(5) ALTERNATES.—The order shall provide for 
the selection of alternate members of the Board by 
the Secretary in accordance with procedures speci-
fied in the order. 
(6) TERMS.— 
(A) IN GENERAL.—The members and any 
alternates of the Board shall each serve for a 
term of 3 years, except that members and any 
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alternates initially appointed to the Board shall 
serve for terms of not more than 2, 3, and 4 
years, as specified by the order. 
(B) 
LIMITATION
ON
CONSECUTIVE 
TERMS.—A member or an alternate may serve 
not more than 2 consecutive terms. 
(C) CONTINUATION
OF
TERM.—Notwith-
standing subparagraph (B), each member or al-
ternate shall continue to serve until a successor 
is appointed by the Secretary. 
(D) VACANCIES.—A vacancy arising before 
the expiration of a term of office of an incum-
bent member or alternate of the Board shall be 
filled in a manner provided for in the order. 
(7) DISQUALIFICATION
FROM
BOARD
SERV-
ICE.—The order shall provide that if a member or 
alternate of the Board who was appointed as a man-
ufacturer ceases to qualify as a manufacturer, such 
member or alternate shall be disqualified from serv-
ing on the Board. 
(8) COMPENSATION.— 
(A) IN GENERAL.—Members and any al-
ternates of the Board shall serve without com-
pensation. 
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(B) TRAVEL EXPENSES.—If approved by 
the Board, members or alternates shall be reim-
bursed for reasonable travel expenses, which 
may include per diem allowance or actual sub-
sistence incurred while away from their homes 
or regular places of business in the performance 
of services for the Board. 
(c) POWERS
AND DUTIES
OF
THE BOARD.—The 
order shall specify the powers and duties of the Board, 
including the power and duty— 
(1) to administer the order in accordance with 
its terms and conditions and to collect assessments; 
(2) to develop and recommend to the Secretary 
for approval such bylaws as may be necessary for 
the functioning of the Board and such rules as may 
be necessary to administer the order, including ac-
tivities authorized to be carried out under the order; 
(3) to meet, organize, and select from among 
members of the Board a chairperson, other officers, 
and committees and subcommittees, as the Board 
determines appropriate; 
(4) to establish regional organizations or com-
mittees to administer regional initiatives; 
(5) to establish working committees of persons 
other than Board members; 
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(6) to employ such persons, other than the 
members, as the board considers necessary, and to 
determine the compensation and specify the duties 
of the persons; 
(7) to prepare and submit for the approval of 
the Secretary, before the beginning of each fiscal 
year, rates of assessment under section 6 and an an-
nual budget of the anticipated expenses to be in-
curred in the administration of the order, including 
the probable cost of each promotion, research, and 
information activity proposed to be developed or car-
ried out by the Board; 
(8) to borrow funds necessary for the startup 
expenses of the order; 
(9) to carry out generic research, education, 
and promotion programs and projects relating to 
concrete masonry products, and to pay the costs of 
such programs and projects with assessments col-
lected under section 6; 
(10) subject to subsection (e), to enter into con-
tracts or agreements to develop and carry out pro-
grams or projects of research, education, and pro-
motion relating to concrete masonry products; 
(11) to keep minutes, books, and records that 
reflect the actions and transactions of the Board, 
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and promptly report minutes of each Board meeting 
to the Secretary; 
(12) to receive, investigate, and report to the 
Secretary complaints of violations of the order; 
(13) to furnish the Secretary with such infor-
mation as the Secretary may request; 
(14) to recommend to the Secretary such 
amendments to the order as the Board considers ap-
propriate; and 
(15) to provide the Secretary with advance no-
tice of meetings to permit the Secretary or the Sec-
retary’s representative to attend the meetings. 
(d) PROGRAMS
AND
PROJECTS; BUDGETS; EX-
PENSES.— 
(1) PROGRAMS AND PROJECTS.— 
(A) IN GENERAL.—The order shall require 
the Board to submit to the Secretary for ap-
proval any program or project of research, edu-
cation, or promotion relating to concrete ma-
sonry products. 
(B) STATEMENT
REQUIRED.—Any edu-
cational or promotional activity undertaken with 
funds provided by the Board shall include a 
statement that such activities were supported in 
whole or in part by the Board. 
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(2) BUDGETS.— 
(A) SUBMISSION.—The order shall require 
the Board to submit to the Secretary for ap-
proval a budget of the anticipated expenses and 
disbursements of the Board in the implementa-
tion of the order, including the projected costs 
of concrete masonry products research, edu-
cation, and promotion programs and projects. 
(B) TIMING.—The budget shall be sub-
mitted before the beginning of a fiscal year and 
as frequently as may be necessary after the be-
ginning of the fiscal year. 
(C) APPROVAL.—If the Secretary fails to 
approve or reject a budget within 60 days of re-
ceipt, such budget shall be deemed approved, 
unless the Secretary provides to the Board and 
to Congress, in writing, reasonable justification 
for the delay and provides a reasonable date by 
which approval or disapproval will be made. 
(3) ADMINISTRATIVE EXPENSES.— 
(A) INCURRING
EXPENSES.—The Board 
may incur the expenses described in paragraph 
(2) and other expenses for the administration, 
maintenance, and functioning of the Board as 
authorized by the Secretary. 
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(B) PAYMENT
OF
EXPENSES.—Expenses 
incurred under subparagraph (A) shall be paid 
by the Board using assessments collected under 
section 6, earnings obtained from assessments, 
and other income of the Board. Any funds bor-
rowed by the Board shall be expended only for 
startup costs and capital outlays. 
(C) LIMITATION ON SPENDING.—For fiscal 
years beginning 3 or more years after the date 
of the establishment of the Board, the Board 
may not expend for administration (except for 
reimbursement to the Secretary required under 
subparagraph (D)), maintenance, and func-
tioning of the Board in a fiscal year an amount 
that exceeds 10 percent of the assessment and 
other income received by the Board for the fis-
cal year. 
(D) REIMBURSEMENT
OF
SECRETARY.— 
The order shall require that the Secretary be 
reimbursed by the Board from assessments for 
all expenses incurred by the Secretary in the 
implementation, administration, and supervision 
of the order, including all referenda costs in-
curred in connection with the order. 
(e) CONTRACTS AND AGREEMENTS.— 
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(1) IN GENERAL.—The order shall provide that, 
with the approval of the Secretary, the Board may— 
(A) enter into contracts and agreements to 
carry out generic research, education, and pro-
motion programs and projects relating to con-
crete masonry products, including contracts and 
agreements with manufacturer associations or 
other entities as considered appropriate by the 
Secretary; 
(B) enter into contracts and agreements 
for administrative services; and 
(C) pay the cost of approved generic re-
search, education, and promotion programs and 
projects using assessments collected under sec-
tion 6, earnings obtained from assessments, and 
other income of the Board. 
(2) REQUIREMENTS.—Each contract or agree-
ment shall provide that any person who enters into 
the contract or agreement with the Board shall— 
(A) develop and submit to the Board a 
proposed program or project together with a 
budget that specifies the cost to be incurred to 
carry out the program or project; 
(B) keep accurate records of all of trans-
actions relating to the contract or agreement; 
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(C) account for funds received and ex-
pended in connection with the contract or 
agreement; 
(D) make periodic reports to the Board of 
activities conducted under the contract or 
agreement; and 
(E) make such other reports as the Board 
or the Secretary considers relevant. 
(3) FAILURE TO APPROVE.—If the Secretary 
fails to approve or reject a contract or agreement 
entered into under paragraph (1) within 60 days of 
receipt, the contract or agreement shall be deemed 
approved, unless the Secretary provides to the Board 
and to Congress, in writing, reasonable justification 
for the delay and provides a reasonable date by 
which approval or disapproval will be made. 
(f) BOOKS AND RECORDS OF BOARD.— 
(1) IN GENERAL.—The order shall require the 
Board to— 
(A) maintain such books and records 
(which shall be available to the Secretary for in-
spection and audit) as the Secretary may re-
quire; 
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(B) collect and submit to the Secretary, at 
any time the Secretary may specify, any infor-
mation the Secretary may request; and 
(C) account for the receipt and disburse-
ment of all funds in the possession, or under 
the control, of the Board. 
(2) AUDITS.—The order shall require the Board 
to have— 
(A) the books and records of the Board au-
dited by an independent auditor at the end of 
each fiscal year; and 
(B) a report of the audit submitted di-
rectly to the Secretary. 
(g) PROHIBITED ACTIVITIES.— 
(1) IN GENERAL.—Subject to paragraph (2), 
the Board shall not engage in any program or 
project to, nor shall any funds received by the Board 
under this Act be used to— 
(A) influence legislation, elections, or gov-
ernmental action; 
(B) engage in an action that would be a 
conflict of interest; 
(C) engage in advertising that is false or 
misleading; 
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(D) engage in any promotion, research, or 
education that would be disparaging to other 
construction materials; or 
(E) engage in any promotion or project 
that would benefit any individual manufacturer. 
(2) EXCEPTIONS.—Paragraph (1) does not pre-
clude— 
(A) the development and recommendation 
of amendments to the order; 
(B) the communication to appropriate gov-
ernment officials of information relating to the 
conduct, implementation, or results of research, 
education, and promotion activities under the 
order except communications described in para-
graph (1)(A); or 
(C) any lawful action designed to market 
concrete masonry products directly to a foreign 
government or political subdivision of a foreign 
government. 
(h) PERIODIC EVALUATION.—The order shall require 
the Board to provide for the independent evaluation of all 
research, education, and promotion programs or projects 
undertaken under the order, beginning 5 years after the 
date of enactment of this Act and every 3 years thereafter. 
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The Board shall submit to the Secretary and make avail-
able to the public the results of each such evaluation. 
(i) OBJECTIVES.—The Board shall establish annual 
research, education, and promotion objectives and per-
formance metrics for each fiscal year subject to approval 
by the Secretary. 
(j) BIENNIAL REPORT.—Every 2 years the Board 
shall prepare and make publicly available a comprehensive 
and detailed report that includes an identification and de-
scription of all programs and projects undertaken by the 
Board during the previous 2 years as well as those planned 
for the subsequent 2 years and detail the allocation or 
planned allocation of Board resources for each such pro-
gram or project. Such report shall also include— 
(1) the Board’s overall financial condition; 
(2) a summary of the amounts obligated or ex-
pended during the 2 preceding fiscal years; and 
(3) a description of the extent to which the 
Board’s objectives were met according to the metrics 
required under subsection (i). 
(k) BOOKS AND RECORDS OF PERSONS COVERED BY 
ORDER.— 
(1) IN GENERAL.—The order shall require that 
manufacturers shall— 
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(A) maintain records sufficient to ensure 
compliance with the order and regulations; and 
(B) make the records described in subpara-
graph (A) available, during normal business 
hours, for inspection by employees or agents of 
the Board or the Department. 
(2) TIME REQUIREMENT.—Any record required 
to be maintained under paragraph (1) shall be main-
tained for such time period as the Secretary may 
prescribe. 
(3) CONFIDENTIALITY OF INFORMATION.— 
(A) IN
GENERAL.—Except as otherwise 
provided in this paragraph, trade secrets and 
commercial or financial information that is 
privileged or confidential reported to, or other-
wise obtained by the Board or the Secretary (or 
any representative of the Board or the Sec-
retary) under this Act shall not be disclosed by 
any officers, employees, and agents of the De-
partment or the Board. 
(B) SUITS
AND
HEARINGS.—Information 
referred to in subparagraph (A) may be dis-
closed only if— 
(i) the Secretary considers the infor-
mation relevant; and 
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(ii) the information is revealed in a 
judicial proceeding or administrative hear-
ing brought at the direction or on the re-
quest of the Secretary or to which the Sec-
retary or any officer of the Department is 
a party. 
(C) GENERAL STATEMENTS AND PUBLICA-
TIONS.—This paragraph does not prohibit— 
(i) the issuance of general statements 
based on reports or on information relating 
to a number of persons subject to an order 
if the statements do not identify the infor-
mation furnished by any person; or 
(ii) the publication, by direction of the 
Secretary, of the name of any person vio-
lating any order and a statement of the 
particular provisions of the order violated 
by the person. 
(D) PENALTY.—Any officer, employee, or 
agent of the Department of Commerce or any 
officer, employee, or agent of the Board who 
willfully violates this paragraph shall be fined 
not more than $1,000 and imprisoned for not 
more than 1 year, or both. 
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(4) WITHHOLDING
INFORMATION.—This sub-
section does not authorize the withholding of infor-
mation from Congress. 
SEC. 6. ASSESSMENTS. 
(a) ASSESSMENTS.—The order shall provide that as-
sessments shall be paid by a manufacturer if the manufac-
turer has manufactured concrete masonry products during 
a period of at least 180 days prior to the date the assess-
ment is to be remitted. 
(b) COLLECTION.— 
(1) IN GENERAL.—Assessments required under 
the order shall be remitted by the manufacturer to 
the Board in the manner prescribed by the order. 
(2) TIMING.—The order shall provide that as-
sessments required under the order shall be remitted 
to the Board not less frequently than quarterly. 
(3) RECORDS.—As part of the remittance of as-
sessments, manufacturers shall identify the total 
amount due in assessments on all sales receipts, in-
voices or other commercial documents of sale as a 
result of the sale of concrete masonry units in a 
manner as prescribed by the Board to ensure com-
pliance with the order. 
(c) ASSESSMENT RATES.—With respect to assess-
ment rates, the order shall contain the following terms: 
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(1) INITIAL
RATE.—The assessment rate on 
concrete masonry products shall be $0.01 per con-
crete masonry unit sold. 
(2) CHANGES IN THE RATE.— 
(A) AUTHORITY TO CHANGE RATE.—The 
Board shall have the authority to change the 
assessment rate. A two-thirds majority of voting 
members of the Board shall be required to ap-
prove a change in the assessment rate. 
(B) LIMITATION ON INCREASES.—An in-
crease or decrease in the assessment rate with 
respect to concrete masonry products may not 
exceed $0.01 per concrete masonry unit sold. 
(C) MAXIMUM
RATE.—The assessment 
rate shall not be in excess of $0.05 per concrete 
masonry unit. 
(D) 
LIMITATION
ON
FREQUENCY
OF 
CHANGES.—The assessment rate may not be in-
creased or decreased more than once annually. 
(d) LATE-PAYMENT AND INTEREST CHARGES.— 
(1) IN GENERAL.—Late-payment and interest 
charges may be levied on each person subject to the 
order who fails to remit an assessment in accordance 
with subsection (b). 
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(2) RATE.—The rate for late-payment and in-
terest charges shall be specified by the Secretary. 
(e) INVESTMENT OF ASSESSMENTS.—Pending dis-
bursement of assessments under a budget approved by the 
Secretary, the Board may invest assessments collected 
under this section in— 
(1) obligations of the United States or any 
agency of the United States; 
(2) general obligations of any State or any po-
litical subdivision of a State; 
(3) interest-bearing accounts or certificates of 
deposit of financial institutions that are members of 
the Federal Reserve System; or 
(4) obligations fully guaranteed as to principal 
and interest by the United States. 
(f) ASSESSMENT FUNDS
FOR REGIONAL INITIA-
TIVES.— 
(1) IN GENERAL.—The order shall provide that 
no less than 50 percent of the assessments (less ad-
ministration expenses) paid by a manufacturer shall 
be used to support research, education, and pro-
motion programs and projects in support of the geo-
graphic region of the manufacturer. 
(2) GEOGRAPHIC
REGIONS.—The order shall 
provide for the following geographic regions: 
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(A) Region I shall comprise Connecticut, 
Delaware, the District of Columbia, Maine, 
Maryland, Massachusetts, New Hampshire, 
New Jersey, New York, Pennsylvania, Rhode 
Island, Vermont, and West Virginia. 
(B) Region II shall comprise Alabama, 
Florida, Georgia, Mississippi, North Carolina, 
South Carolina, Tennessee, and Virginia. 
(C) Region III shall comprise Illinois, Indi-
ana, Iowa, Kentucky, Michigan, Minnesota, Ne-
braska, North Dakota, Ohio, South Dakota, 
and Wisconsin. 
(D) Region IV shall comprise Arizona, Ar-
kansas, Kansas, Louisiana, Missouri, New Mex-
ico, Oklahoma, and Texas. 
(E) Region V shall comprise Alaska, Cali-
fornia, Colorado, Hawaii, Idaho, Montana, Ne-
vada, Oregon, Utah, Washington, and Wyo-
ming. 
(3) ADJUSTMENT OF GEOGRAPHIC REGIONS.— 
The order shall provide that the Secretary may, 
upon recommendation of the Board, modify the com-
position of the geographic regions described in para-
graph (2). 
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SEC. 7. REFERENDA. 
(a) INITIAL REFERENDUM.— 
(1) REFERENDUM REQUIRED.—During the 60- 
day period immediately preceding the proposed effec-
tive date of the order issued under section 4, the 
Secretary shall conduct a referendum among manu-
facturers eligible under subsection (b)(2) subject to 
assessments under section 6. 
(2) APPROVAL OF ORDER NEEDED.—The order 
shall become effective only if the Secretary deter-
mines that the order has been approved by a major-
ity of manufacturers voting who also represent a 
majority of the machine cavities in operation of 
those manufacturers voting in the referendum. 
(b) VOTES PERMITTED.— 
(1) IN GENERAL.—Each manufacturer eligible 
to vote in a referendum conducted under this section 
shall be entitled to cast one vote. 
(2) ELIGIBILITY.—For purposes of paragraph 
(1), a manufacturer shall be considered to be eligible 
to vote if the manufacturer has manufactured con-
crete masonry products during a period of at least 
180 days prior to the first day of the period during 
which voting in the referendum will occur. 
(c) MANNER OF CONDUCTING REFERENDA.— 
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(1) IN GENERAL.—Referenda conducted pursu-
ant to this section shall be conducted in a manner 
determined by the Secretary. 
(2) ADVANCE REGISTRATION.—A manufacturer 
who chooses to vote in any referendum conducted 
under this section shall register with the Secretary 
prior to the voting period, after receiving notice from 
the Secretary concerning the referendum under 
paragraph (4). 
(3) VOTING.—The Secretary shall establish pro-
cedures for voting in any referendum conducted 
under this section. The ballots and other information 
or reports that reveal or tend to reveal the identity 
or vote of voters shall be strictly confidential. 
(4) NOTICE.—Not later than 30 days before a 
referendum is conducted under this section with re-
spect to an order, the Secretary shall notify all man-
ufacturers, in such a manner as determined by the 
Secretary, of the period during which voting in the 
referendum will occur. The notice shall explain any 
registration and voting procedures established under 
this subsection. 
(d) SUBSEQUENT REFERENDA.—If an order is ap-
proved in a referendum conducted under subsection (a), 
the Secretary shall conduct a subsequent referendum— 
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(1) at the request of the Board, subject to the 
voting requirements of subsections (b) and (c), to 
ascertain whether eligible manufacturers favor sus-
pension, termination, or continuance of the order; or 
(2) effective beginning on the date that is 5 
years after the date of the approval of the order, and 
at 5-year intervals thereafter, at the request of 25 
percent or more of the total number of persons eligi-
ble to vote under subsection (b). 
(e) SUSPENSION OR TERMINATION.—If, as a result 
of a referendum conducted under subsection (d), the Sec-
retary determines that suspension or termination of the 
order is favored by a majority of all votes cast in the ref-
erendum as provided in subsection (a)(2), the Secretary 
shall— 
(1) not later than 180 days after the ref-
erendum, suspend or terminate, as appropriate, col-
lection of assessments under the order; and 
(2) suspend or terminate, as appropriate, pro-
grams and projects under the order as soon as prac-
ticable and in an orderly manner. 
(f) COSTS OF REFERENDA.—The Board established 
under an order with respect to which a referendum is con-
ducted under this section shall reimburse the Secretary 
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from assessments for any expenses incurred by the Sec-
retary to conduct the referendum. 
SEC. 8. PETITION AND REVIEW. 
(a) PETITION.— 
(1) IN GENERAL.—A person subject to an order 
issued under this Act may file with the Secretary a 
petition— 
(A) stating that the order, any provision of 
the order, or any obligation imposed in connec-
tion with the order, is not established in accord-
ance with law; and 
(B) requesting a modification of the order 
or an exemption from the order. 
(2) HEARING.—The Secretary shall give the pe-
titioner an opportunity for a hearing on the petition, 
in accordance with regulations issued by the Sec-
retary. 
(3) RULING.—After the hearing, the Secretary 
shall make a ruling on the petition. The ruling shall 
be final, subject to review as set forth in subsection 
(b). 
(4) LIMITATION
ON
PETITION.—Any petition 
filed under this subsection challenging an order, any 
provision of the order, or any obligation imposed in 
connection with the order, shall be filed not less than 
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2 years after the effective date of the order, provi-
sion, or obligation subject to challenge in the peti-
tion. 
(b) REVIEW.— 
(1) COMMENCEMENT OF ACTION.—The district 
courts of the United States in any district in which 
a person who is a petitioner under subsection (a) re-
sides or conducts business shall have jurisdiction to 
review the ruling of the Secretary on the petition of 
the person, if a complaint requesting the review is 
filed no later than 30 days after the date of the 
entry of the ruling by the Secretary. 
(2) PROCESS.—Service of process in pro-
ceedings under this subsection shall be conducted in 
accordance with the Federal Rules of Civil Proce-
dure. 
(3) REMANDS.—If the court in a proceeding 
under this subsection determines that the ruling of 
the Secretary on the petition of the person is not in 
accordance with law, the court shall remand the 
matter to the Secretary with directions— 
(A) to make such ruling as the court shall 
determine to be in accordance with law; or 
(B) to take such further action as, in the 
opinion the court, the law requires. 
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(c) ENFORCEMENT.—The pendency of proceedings 
instituted under this section shall not impede, hinder, or 
delay the Attorney General or the Secretary from obtain-
ing relief under section 9. 
SEC. 9. ENFORCEMENT. 
(a) JURISDICTION.—A district court of the United 
States shall have jurisdiction to enforce, and to prevent 
and restrain any person from violating, this Act or an 
order or regulation issued by the Secretary under this Act. 
(b) REFERRAL TO ATTORNEY GENERAL.—A civil ac-
tion authorized to be brought under this section shall be 
referred to the Attorney General of the United States for 
appropriate action. 
(c) CIVIL PENALTIES AND ORDERS.— 
(1) CIVIL PENALTIES.—A person who willfully 
violates an order or regulation issued by the Sec-
retary under this Act may be assessed by the Sec-
retary a civil penalty of not more than $5,000 for 
each violation. 
(2) SEPARATE OFFENSE.—Each violation and 
each day during which there is a failure to comply 
with an order or regulation issued by the Secretary 
shall be considered to be a separate offense. 
(3) CEASE-AND-DESIST
ORDERS.—In addition 
to, or in lieu of, a civil penalty, the Secretary may 
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issue an order requiring a person to cease and desist 
from violating the order or regulation. 
(4) NOTICE AND HEARING.—No order assessing 
a penalty or cease-and-desist order may be issued by 
the Secretary under this subsection unless the Sec-
retary provides notice and an opportunity for a hear-
ing on the record with respect to the violation. 
(5) FINALITY.—An order assessing a penalty or 
a cease-and-desist order issued under this subsection 
by the Secretary shall be final and conclusive unless 
the person against whom the order is issued files an 
appeal from the order with the appropriate district 
court of the United States. 
(d) ADDITIONAL REMEDIES.—The remedies provided 
in this Act shall be in addition to, and not exclusive of, 
other remedies that may be available. 
SEC. 10. INVESTIGATION AND POWER TO SUBPOENA. 
(a) INVESTIGATIONS.—The Secretary may conduct 
such investigations as the Secretary considers necessary 
for the effective administration of this Act, or to determine 
whether any person has engaged or is engaging in any 
act that constitutes a violation of this Act or any order 
or regulation issued under this Act. 
(b) SUBPOENAS, OATHS, AND AFFIRMATIONS.— 
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(1) INVESTIGATIONS.—For the purpose of con-
ducting an investigation under subsection (a), the 
Secretary may administer oaths and affirmations, 
subpoena witnesses, compel the attendance of wit-
nesses, take evidence, and require the production of 
any records that are relevant to the inquiry. The 
production of the records may be required from any 
place in the United States. 
(2) ADMINISTRATIVE HEARINGS.—For the pur-
pose of an administrative hearing held under section 
8(a)(2) or section 9(c)(4), the presiding officer may 
administer oaths and affirmations, subpoena wit-
nesses, compel the attendance of witnesses, take evi-
dence, and require the production of any records 
that are relevant to the inquiry. The attendance of 
witnesses and the production of the records may be 
required from any place in the United States. 
(c) AID OF COURTS.— 
(1) IN GENERAL.—In the case of contumacy by, 
or refusal to obey a subpoena issued under sub-
section (b) to, any person, the Secretary may invoke 
the aid of any court of the United States within the 
jurisdiction of which the investigation or proceeding 
is conducted, or where the person resides or con-
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ducts business, in order to enforce a subpoena issued 
under subsection (b). 
(2) ORDER.—The court may issue an order re-
quiring the person referred to in paragraph (1) to 
comply with a subpoena referred to in paragraph 
(1). 
(3) FAILURE TO OBEY.—Any failure to obey 
the order of the court may be punished by the court 
as a contempt of court. 
(4) PROCESS.—Process in any proceeding 
under this subsection may be served in the United 
States judicial district in which the person being 
proceeded against resides or conducts business, or 
wherever the person may be found. 
SEC. 11. SUSPENSION OR TERMINATION. 
(a) MANDATORY SUSPENSION OR TERMINATION.— 
The Secretary shall suspend or terminate an order or a 
provision of an order if the Secretary finds that an order 
or provision of an order obstructs or does not tend to ef-
fectuate the purpose of this Act, or if the Secretary deter-
mines that the order or a provision of an order is not fa-
vored by a majority of all votes cast in the referendum 
as provided in section 7(a)(2). 
(b) IMPLEMENTATION OF SUSPENSION OR TERMI-
NATION.—If, as a result of a referendum conducted under 
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section 7, the Secretary determines that the order is not 
approved, the Secretary shall— 
(1) not later than 180 days after making the 
determination, suspend or terminate, as the case 
may be, collection of assessments under the order; 
and 
(2) as soon as practicable, suspend or termi-
nate, as the case may be, activities under the order 
in an orderly manner. 
SEC. 12. AMENDMENTS TO ORDERS. 
The provisions of this Act applicable to the order 
shall be applicable to any amendment to the order, except 
that section 8 shall not apply to an amendment. 
SEC. 13. EFFECT ON OTHER LAWS. 
This Act shall not affect or preempt any other Fed-
eral or State law authorizing research, education, and pro-
motion relating to concrete masonry products. 
SEC. 14. REGULATIONS. 
The Secretary may issue such regulations as may be 
necessary to carry out this Act and the power vested in 
the Secretary under this Act. 
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SEC. 15. LIMITATION ON EXPENDITURES FOR ADMINISTRA-
TIVE EXPENSES. 
Funds appropriated to carry out this Act may not 
be used for the payment of the expenses or expenditures 
of the Board in administering the order. 
SEC. 16. LIMITATIONS ON OBLIGATION OF FUNDS. 
(a) IN GENERAL.—In each fiscal year of the covered 
period, the Board may not obligate an amount greater 
than the sum of— 
(1) 73 percent of the amount of assessments es-
timated to be collected under section 6 in such fiscal 
year; 
(2) 73 percent of the amount of assessments 
actually collected under section 6 in the most recent 
fiscal year for which an audit report has been sub-
mitted under section 5(f)(2)(B) as of the beginning 
of the fiscal year for which the amount that may be 
obligated is being determined, less the estimate 
made pursuant to paragraph (1) for such most re-
cent fiscal year; and 
(3) amounts permitted in preceding fiscal years 
to be obligated pursuant to this subsection that have 
not been obligated. 
(b) EXCESS AMOUNTS DEPOSITED IN ESCROW AC-
COUNT.—Assessments collected under section 6 in excess 
of the amount permitted to be obligated under subsection 
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(a) in a fiscal year shall be deposited in an escrow account 
for the duration of the covered period. 
(c) TREATMENT
OF AMOUNTS
IN ESCROW AC-
COUNT.—During the covered period, the Board may not 
obligate, expend, or borrow against amounts required 
under subsection (b) to be deposited in the escrow account. 
Any interest earned on such amounts shall be deposited 
in the escrow account and shall be unavailable for obliga-
tion for the duration of the covered period. 
(d) RELEASE OF AMOUNTS IN ESCROW ACCOUNT.— 
After the covered period, the Board may withdraw and 
obligate in any fiscal year an amount in the escrow ac-
count that does not exceed 1⁄5th of the amount in the es-
crow account on the last day of the covered period. 
(e) SPECIAL RULE FOR ESTIMATES FOR PARTICULAR 
FISCAL YEARS.— 
(1) RULE.—For purposes of subsection (a)(1), 
the amount of assessments estimated to be collected 
under section 6 in a fiscal year specified in para-
graph (2) shall be equal to 62 percent of the amount 
of assessments actually collected under such section 
in the most recent fiscal year for which an audit re-
port has been submitted under section 5(f)(2)(B) as 
of the beginning of the fiscal year for which the 
amount that may be obligated is being determined. 
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(2) FISCAL
YEARS
SPECIFIED.—The fiscal 
years specified in this paragraph are the 9th and 
10th fiscal years that begin on or after the date of 
the enactment of this Act. 
(f) COVERED PERIOD DEFINED.—In this section, the 
term ‘‘covered period’’ means the period that begins on 
the date of the enactment of this Act and ends on the 
last day of the 11th fiscal year that begins on or after 
such date of enactment. 
SEC. 17. STUDY AND REPORT BY THE GOVERNMENT AC-
COUNTABILITY OFFICE. 
Not later than 5 years and 8 years after the date 
of enactment of this Act, the Comptroller General of the 
United States shall prepare a study and submit to Con-
gress and the Secretary a report examining— 
(1) how the Board spends assessments col-
lected; 
(2) the extent to which the Board’s reported ac-
tivities help achieve its annual objectives; 
(3) any changes in demand for concrete ma-
sonry products relative to other building materials; 
(4) any impact of the Board’s activities on the 
market share of competing products; 
(5) any impact of the Board’s activities on the 
overall size of the market for building products; 
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(6) any impact of the Board’s activities on the 
total number of concrete masonry related jobs, in-
cluding manufacturing, sales, and installation; 
(7) any significant effects of the Board’s activi-
ties on downstream purchasers of concrete masonry 
products and real property into which concrete ma-
sonry products are incorporated; 
(8) effects on prices of concrete masonry prod-
ucts as a result of the Board’s activities; 
(9) the cost to the federal government of an in-
crease in concrete masonry product prices, if any, as 
a result of the program established by this Act; 
(10) the extent to which key statutory require-
ments are met; 
(11) the extent and strength of federal over-
sight of the program established by this Act; 
(12) the appropriateness of administering the 
program from within the Office of the Secretary of 
Commerce and the appropriateness of administering 
the program from within any division of the Depart-
ment of Commerce, including whether the Depart-
ment has the expertise, knowledge, or other capabili-
ties necessary to adequately administer the program; 
and 
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(13) any other topic that the Comptroller Gen-
eral considers appropriate. 
SEC. 18. STUDY AND REPORT BY THE DEPARTMENT OF 
COMMERCE. 
Not later than 3 years after the date of enactment 
of this Act, the Secretary shall prepare a study and submit 
to Congress a report examining the appropriateness and 
effectiveness of applying the commodity check-off program 
model (such as those programs established under sub-
chapter II of chapter 101 of title 7, United States Code) 
to a nonagricultural industry, taking into account the pro-
gram established by this Act and any other check-off pro-
gram involving a nonagricultural industry. 
Passed the House of Representatives November 14, 
2016. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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