[House Report 114-671]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 114-671
======================================================================
CONCRETE MASONRY PRODUCTS RESEARCH, EDUCATION, AND PROMOTION ACT OF
2015
_______
July 8, 2016.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Upton, from the Committee on Energy and Commerce, submitted the
following
R E P O R T
[To accompany H.R. 985]
[Including cost estimate of the Congressional Budget Office]
The Committee on Energy and Commerce, to whom was referred
the bill (H.R. 985) to enable concrete masonry products
manufacturers to establish, finance, and carry out a
coordinated program of research, education, and promotion to
improve, maintain, and develop markets for concrete masonry
products, having considered the same, report favorably thereon
with an amendment and recommend that the bill as amended do
pass.
CONTENTS
Page
Purpose and Summary.............................................. 11
Background and Need for Legislation.............................. 12
Hearings......................................................... 12
Committee Consideration.......................................... 13
Committee Votes.................................................. 13
Committee Oversight Findings..................................... 13
Statement of General Performance Goals and Objectives............ 13
New Budget Authority, Entitlement Authority, and Tax Expenditures 13
Earmark, Limited Tax Benefits, and Limited Tariff Benefits....... 13
Committee Cost Estimate.......................................... 13
Congressional Budget Office Estimate............................. 14
Federal Mandates Statement....................................... 17
Duplication of Federal Programs.................................. 17
Disclosure of Directed Rule Makings.............................. 17
Advisory Committee Statement..................................... 17
Applicability to Legislative Branch.............................. 17
Section-by-Section Analysis of the Legislation................... 18
Changes in Existing Law Made by the Bill, as Reported............ 20
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Concrete Masonry Products Research,
Education, and Promotion Act of 2015''.
SEC. 2. DECLARATION OF POLICY.
(a) Purpose.--The purpose of this Act is to authorize the
establishment of an orderly program for developing, financing, and
carrying out an effective, continuous, and coordinated program of
research, education, and promotion, including funds for marketing and
market research activities, that is designed to--
(1) strengthen the position of the concrete masonry products
industry in the domestic marketplace;
(2) maintain, develop, and expand markets and uses for
concrete masonry products in the domestic marketplace; and
(3) promote the use of concrete masonry products in
construction and building.
(b) Limitation.--Nothing in this Act may be construed to provide for
the control of production or otherwise limit the right of any person to
manufacture concrete masonry products.
SEC. 3. DEFINITIONS.
For the purposes of this Act:
(1) Block machine.--The term ``block machine'' means a piece
of equipment that utilizes vibration and compaction to form
concrete masonry products.
(2) Board.--The term ``Board'' means the Concrete Masonry
Products Board established under section 5.
(3) Cavity.--The term ``cavity'' means the open space in the
mold of a block machine capable of forming a single concrete
masonry unit having nominal plan dimensions of 8 inches by 16
inches.
(4) Commerce.--The term ``commerce'' includes interstate,
foreign, and intrastate commerce.
(5) Concrete masonry products.--The term ``concrete masonry
products'' refers to a broader class of products, including
concrete masonry units as well as hardscape products such as
concrete pavers and segmental retaining wall units,
manufactured on a block machine using dry-cast concrete.
(6) Concrete masonry unit.--The term ``concrete masonry
unit'' means a concrete masonry product that is a manmade
masonry unit having an actual width of 3 inches or greater and
manufactured from dry-cast concrete using a block machine. Such
term includes concrete block and related concrete units used in
masonry applications.
(7) Conflict of interest.--The term ``conflict of interest''
means, with respect to a member or employee of the Board, a
situation in which such member or employee has a direct or
indirect financial or other interest in a person that performs
a service for, or enters into a contract with, for anything of
economic value.
(8) Department.--The term ``Department'' means the Department
of Commerce.
(9) Dry-cast concrete.--The term ``dry-cast concrete'' means
a composite material that is composed essentially of aggregates
embedded in a binding medium composed of a mixture of
cementitious materials (including hydraulic cement, pozzolans,
or other cementitious materials) and water of such a
consistency to maintain its shape after forming in a block
machine.
(10) Education.--The term ``education'' means programs that
will educate or communicate the benefits of concrete masonry
products in safe and environmentally sustainable development,
advancements in concrete masonry product technology and
development, and other information and programs designed to
generate increased demand for commercial, residential, multi-
family, and institutional projects using concrete masonry
products and to generally enhance the image of concrete masonry
products.
(11) Machine cavities.--The term ``machine cavities'' means
the cavities with which a block machine could be equipped.
(12) Machine cavities in operation.--The term ``machine
cavities in operation'' means those machine cavities associated
with a block machine that have produced concrete masonry units
within the last 6 months of the date set for determining
eligibility and is fully operable and capable of producing
concrete masonry units.
(13) Manufacturer.--The term ``manufacturer'' means any
person engaged in the manufacturing of commercial concrete
masonry products in the United States.
(14) Masonry unit.--The term ``masonry unit'' means a
noncombustible building product intended to be laid by hand or
joined using mortar, grout, surface bonding, post-tensioning or
some combination of these methods.
(15) Order.--The term ``order'' means an order issued under
section 4.
(16) Person.--The term ``person'' means any individual, group
of individuals, partnership, corporation, association,
cooperative, or any other entity.
(17) Promotion.--The term ``promotion'' means any action,
including paid advertising, to advance the image and
desirability of concrete masonry products with the express
intent of improving the competitive position and stimulating
sales of concrete masonry products in the marketplace.
(18) Research.--The term ``research'' means studies testing
the effectiveness of market development and promotion efforts,
studies relating to the improvement of concrete masonry
products and new product development, and studies documenting
the performance of concrete masonry.
(19) Secretary.--The term ``Secretary'' means the Secretary
of Commerce.
(20) United states.--The term ``United States'' means the
several States and the District of Columbia.
SEC. 4. ISSUANCE OF ORDERS.
(a) In General.--
(1) Issuance.--The Secretary, subject to the procedures
provided in subsection (b), shall issue orders under this Act
applicable to manufacturers of concrete masonry products.
(2) Scope.--Any order shall be national in scope.
(3) One order.--Not more than one order shall be in effect at
any one time.
(b) Procedures.--
(1) Development or receipt of proposed order.--A proposed
order with respect to the generic research, education, and
promotion with regards to concrete masonry products may be--
(A) proposed by the Secretary at any time; or
(B) requested by or submitted to the Secretary by--
(i) an existing national organization of
concrete masonry product manufacturers; or
(ii) any person that may be affected by the
issuance of an order.
(2) Publication of proposed order.--If the Secretary
determines that a proposed order received in accordance with
paragraph (1)(B) is consistent with and will effectuate the
purpose of this Act, the Secretary shall publish such proposed
order in the Federal Register not later than 90 days after
receiving the order, and give not less than 30 days notice and
opportunity for public comment on the proposed order.
(3) Issuance of order.--
(A) In general.--After notice and opportunity for
public comment are provided in accordance with
paragraph (2), the Secretary shall issue the order,
taking into consideration the comments received and
including in the order such provisions as are necessary
to ensure that the order is in conformity with this
Act.
(B) Effective date.--If there is an affirmative vote
in a referendum as provided in section 7, the Secretary
shall issue the order and such order shall be effective
not later than 140 days after publication of the
proposed order.
(c) Amendments.--The Secretary may, from time to time, amend an
order. The provisions of this Act applicable to an order shall be
applicable to any amendment to an order.
SEC. 5. REQUIRED TERMS IN ORDERS.
(a) In General.--Any order issued under this Act shall contain the
terms and provisions specified in this section.
(b) Concrete Masonry Products Board.--
(1) Establishment and membership.--
(A) Establishment.--The order shall provide for the
establishment of a Concrete Masonry Products Board to
carry out a program of generic promotion, research, and
education regarding concrete masonry products.
(B) Membership.--
(i) Number of members.--The board shall
consist of not less than 15 and not more than
25 members.
(ii) Appointment.--The members of the Board
shall be appointed by the Secretary from
nominations submitted as provided in the order.
(iii) Composition.--The Board shall consist
of manufacturers. No employee of an industry
trade organization exempt from tax under
paragraphs (3) or (6) of section 501(c) of the
Internal Revenue Code of 1986 (26 U.S.C.
501(c)) representing the concrete masonry
industry or related industries shall serve as a
member of the Board and no member of the Board
may serve concurrently as an officer of the
board of directors of a national concrete
masonry products industry trade association.
Only two individuals from any single company or
its affiliates may serve on the Board at any
one time.
(2) Distribution of appointments.--
(A) Representation.--To ensure fair and equitable
representation of the concrete masonry products
industry, the composition of the Board shall reflect
the geographical distribution of the manufacture of
concrete masonry products in the United States, the
types of concrete masonry products manufactured, and
the range in size of manufacturers in the United
States.
(B) Adjustment in board representation.--Three years
after the assessment of concrete masonry products
commences pursuant to an order, and at the end of each
3-year period thereafter, the Board, subject to the
review and approval of the Secretary, shall, if
warranted, recommend to the Secretary the
reapportionment of the Board membership to reflect
changes in the geographical distribution of the
manufacture of concrete masonry products and the types
of concrete masonry products manufactured.
(3) Nominations process.--The Secretary may make appointments
from nominations by manufacturers pursuant to the method set
forth in the order.
(4) Failure to appoint.--If the Secretary fails to make an
appointment to the Board within 60 days of receiving
nominations for such appointment, the first nominee for such
appointment shall be deemed appointed, unless the Secretary
provides reasonable justification for the delay to the Board
and to Congress and provides a reasonable date by which
approval or disapproval will be made.
(5) Alternates.--The order shall provide for the selection of
alternate members of the Board by the Secretary in accordance
with procedures specified in the order.
(6) Terms.--
(A) In general.--The members and any alternates of
the Board shall each serve for a term of 3 years,
except that members and any alternates initially
appointed to the Board shall serve for terms of not
more than 2, 3, and 4 years, as specified by the order.
(B) Limitation on consecutive terms.--A member or an
alternate may serve not more than 2 consecutive terms.
(C) Continuation of term.--Notwithstanding
subparagraph (B), each member or alternate shall
continue to serve until a successor is appointed by the
Secretary.
(D) Vacancies.--A vacancy arising before the
expiration of a term of office of an incumbent member
or alternate of the Board shall be filled in a manner
provided for in the order.
(7) Disqualification from board service.--The order shall
provide that if a member or alternate of the Board who was
appointed as a manufacturer ceases to qualify as a
manufacturer, such member or alternate shall be disqualified
from serving on the Board.
(8) Compensation.--
(A) In general.--Members and any alternates of the
Board shall serve without compensation.
(B) Travel expenses.--If approved by the Board,
members or alternates shall be reimbursed for
reasonable travel expenses, which may include per diem
allowance or actual subsistence incurred while away
from their homes or regular places of business in the
performance of services for the Board.
(c) Powers and Duties of the Board.--The order shall specify the
powers and duties of the Board, including the power and duty--
(1) to administer the order in accordance with its terms and
conditions and to collect assessments;
(2) to develop and recommend to the Secretary for approval
such bylaws as may be necessary for the functioning of the
Board and such rules as may be necessary to administer the
order, including activities authorized to be carried out under
the order;
(3) to meet, organize, and select from among members of the
Board a chairperson, other officers, and committees and
subcommittees, as the Board determines appropriate;
(4) to establish regional organizations or committees to
administer regional initiatives;
(5) to establish working committees of persons other than
Board members;
(6) to employ such persons, other than the members, as the
board considers necessary, and to determine the compensation
and specify the duties of the persons;
(7) to prepare and submit for the approval of the Secretary,
before the beginning of each fiscal year, rates of assessment
under section 6 and an annual budget of the anticipated
expenses to be incurred in the administration of the order,
including the probable cost of each promotion, research, and
information activity proposed to be developed or carried out by
the Board;
(8) to borrow funds necessary for the startup expenses of the
order;
(9) to carry out generic research, education, and promotion
programs and projects relating to concrete masonry products,
and to pay the costs of such programs and projects with
assessments collected under section 6;
(10) subject to subsection (e), to enter into contracts or
agreements to develop and carry out programs or projects of
research, education, and promotion relating to concrete masonry
products;
(11) to keep minutes, books, and records that reflect the
actions and transactions of the Board, and promptly report
minutes of each Board meeting to the Secretary;
(12) to receive, investigate, and report to the Secretary
complaints of violations of the order;
(13) to furnish the Secretary with such information as the
Secretary may request;
(14) to recommend to the Secretary such amendments to the
order as the Board considers appropriate; and
(15) to provide the Secretary with advance notice of meetings
to permit the Secretary or the Secretary's representative to
attend the meetings.
(d) Programs and Projects; Budgets; Expenses.--
(1) Programs and projects.--
(A) In general.--The order shall require the Board to
submit to the Secretary for approval any program or
project of research, education, or promotion relating
to concrete masonry products.
(B) Statement required.--Any educational or
promotional activity undertaken with funds provided by
the Board shall include a statement that such
activities were supported in whole or in part by the
Board.
(2) Budgets.--
(A) Submission.--The order shall require the Board to
submit to the Secretary for approval a budget of the
anticipated expenses and disbursements of the Board in
the implementation of the order, including the
projected costs of concrete masonry products research,
education, and promotion programs and projects.
(B) Timing.--The budget shall be submitted before the
beginning of a fiscal year and as frequently as may be
necessary after the beginning of the fiscal year.
(C) Approval.--If the Secretary fails to approve or
reject a budget within 60 days of receipt, such budget
shall be deemed approved, unless the Secretary provides
to the Board and to Congress, in writing, reasonable
justification for the delay and provides a reasonable
date by which approval or disapproval will be made.
(3) Administrative expenses.--
(A) Incurring expenses.--The Board may incur the
expenses described in paragraph (2) and other expenses
for the administration, maintenance, and functioning of
the Board as authorized by the Secretary.
(B) Payment of expenses.--Expenses incurred under
subparagraph (A) shall be paid by the Board using
assessments collected under section 6, earnings
obtained from assessments, and other income of the
Board. Any funds borrowed by the Board shall be
expended only for startup costs and capital outlays.
(C) Limitation on spending.--For fiscal years
beginning 3 or more years after the date of the
establishment of the Board, the Board may not expend
for administration (except for reimbursement to the
Secretary required under subparagraph (D)),
maintenance, and functioning of the Board in a fiscal
year an amount that exceeds 10 percent of the
assessment and other income received by the Board for
the fiscal year.
(D) Reimbursement of secretary.--The order shall
require that the Secretary be reimbursed by the Board
from assessments for all expenses incurred by the
Secretary in the implementation, administration, and
supervision of the order, including all referenda costs
incurred in connection with the order.
(e) Contracts and Agreements.--
(1) In general.--The order shall provide that, with the
approval of the Secretary, the Board may--
(A) enter into contracts and agreements to carry out
generic research, education, and promotion programs and
projects relating to concrete masonry products,
including contracts and agreements with manufacturer
associations or other entities as considered
appropriate by the Secretary;
(B) enter into contracts and agreements for
administrative services; and
(C) pay the cost of approved generic research,
education, and promotion programs and projects using
assessments collected under section 6, earnings
obtained from assessments, and other income of the
Board.
(2) Requirements.--Each contract or agreement shall provide
that any person who enters into the contract or agreement with
the Board shall--
(A) develop and submit to the Board a proposed
program or project together with a budget that
specifies the cost to be incurred to carry out the
program or project;
(B) keep accurate records of all of transactions
relating to the contract or agreement;
(C) account for funds received and expended in
connection with the contract or agreement;
(D) make periodic reports to the Board of activities
conducted under the contract or agreement; and
(E) make such other reports as the Board or the
Secretary considers relevant.
(3) Failure to approve.--If the Secretary fails to approve or
reject a contract or agreement entered into under paragraph (1)
within 60 days of receipt, the contract or agreement shall be
deemed approved, unless the Secretary provides to the Board and
to Congress, in writing, reasonable justification for the delay
and provides a reasonable date by which approval or disapproval
will be made.
(f) Books and Records of Board.--
(1) In general.--The order shall require the Board to--
(A) maintain such books and records (which shall be
available to the Secretary for inspection and audit) as
the Secretary may require;
(B) collect and submit to the Secretary, at any time
the Secretary may specify, any information the
Secretary may request; and
(C) account for the receipt and disbursement of all
funds in the possession, or under the control, of the
Board.
(2) Audits.--The order shall require the Board to have--
(A) the books and records of the Board audited by an
independent auditor at the end of each fiscal year; and
(B) a report of the audit submitted directly to the
Secretary.
(g) Prohibited Activities.--
(1) In general.--Subject to paragraph (2), the Board shall
not engage in any program or project to, nor shall any funds
received by the Board under this Act be used to--
(A) influence legislation, elections, or governmental
action;
(B) engage in an action that would be a conflict of
interest;
(C) engage in advertising that is false or
misleading;
(D) engage in any promotion, research, or education
that would be disparaging to other construction
materials; or
(E) engage in any promotion or project that would
benefit any individual manufacturer.
(2) Exceptions.--Paragraph (1) does not preclude--
(A) the development and recommendation of amendments
to the order;
(B) the communication to appropriate government
officials of information relating to the conduct,
implementation, or results of research, education, and
promotion activities under the order except
communications described in paragraph(1)(A); or
(C) any lawful action designed to market concrete
masonry products directly to a foreign government or
political subdivision of a foreign government.
(h) Periodic Evaluation.--The order shall require the Board to
provide for the independent evaluation of all research, education, and
promotion programs or projects undertaken under the order, beginning
five years after the date of enactment of this Act and every three
years thereafter. The Board shall submit to the Secretary and make
available to the public the results of each such evaluation.
(i) Objectives.--The Board shall establish annual research,
education, and promotion objectives and performance metrics for each
fiscal year subject to approval by the Secretary.
(j) Biennial Report.--Every two years the Board shall prepare and
make publicly available a comprehensive and detailed report that
includes an identification and description of all programs and projects
undertaken by the Board during the previous two years as well as those
planned for the subsequent two years and detail the allocation or
planned allocation of Board resources for each such program or project.
Such report shall also include--
(1) the Board's overall financial condition;
(2) a summary of the amounts obligated or expended during the
two preceding fiscal years; and
(3) a description of the extent to which the Board's
objectives were met according to the metrics required under
subsection (i).
(k) Books and Records of Persons Covered by Order.--
(1) In general.--The order shall require that manufacturers
shall--
(A) maintain records sufficient to ensure compliance
with the order and regulations; and
(B) make the records described in subparagraph (A)
available, during normal business hours, for inspection
by employees or agents of the Board or the Department.
(2) Time requirement.--Any record required to be maintained
under paragraph (1) shall be maintained for such time period as
the Secretary may prescribe.
(3) Confidentiality of information.--
(A) In general.--Except as otherwise provided in this
subparagraph (B) trade secrets and commercial or
financial information that is privileged or
confidential reported to, or otherwise obtained by the
Board or the Secretary (or any representative of the
Board or the Secretary) under this Act shall not be
disclosed by any officers, employees, and agents of the
Department or the Board.
(B) Suits and hearings.--Information referred to in
subparagraph (A) may be disclosed only if--
(i) the Secretary considers the information
relevant; and
(ii) the information is revealed in a
judicial proceeding or administrative hearing
brought at the direction or on the request of
the Secretary or to which the Secretary or any
officer of the Department is a party.
(C) General statements and publications.--This
paragraph does not prohibit--
(i) the issuance of general statements based
on reports or on information relating to a
number of persons subject to an order if the
statements do not identify the information
furnished by any person; or
(ii) the publication, by direction of the
Secretary, of the name of any person violating
any order and a statement of the particular
provisions of the order violated by the person.
(D) Penalty.--Any officer, employee, or agent of the
Department of Commerce or any officer, employee, or
agent of the Board who willfully violates this
subsection shall be fined not more than $1,000 and
imprisoned for not more than 1 year, or both.
(4) Withholding information.--This subsection does not
authorize the withholding of information from Congress.
SEC. 6. ASSESSMENTS.
(a) Assessments.--The order shall provide that assessments shall be
paid by a manufacturer if the manufacturer has manufactured concrete
masonry products during a period of at least 180 days prior to the date
the assessment is to be remitted.
(b) Collection.--
(1) In general.--Assessments required under the order shall
be remitted by the manufacturer to the Board in the manner
prescribed by the order.
(2) Timing.--The order shall provide that assessments
required under the order shall be remitted to the Board not
less frequently than quarterly.
(3) Records.--As part of the remittance of assessments,
manufacturers shall identify the total amount due in
assessments on all sales receipts, invoices or other commercial
documents of sale as a result of the sale of concrete masonry
units in a manner as prescribed by the Board to ensure
compliance with the order.
(c) Assessment Rates.--With respect to assessment rates, the order
shall contain the following terms:
(1) Initial rate.--The assessment rate on concrete masonry
products shall be $0.01 per concrete masonry unit sold.
(2) Changes in the rate.--
(A) Authority to change rate.--The Board shall have
the authority to change the assessment rate. A two-
thirds majority of voting members of the Board shall be
required to approve a change in the assessment rate.
(B) Limitation on increases.--An increase or decrease
in the assessment rate with respect to concrete masonry
products may not exceed $0.01 per concrete masonry unit
sold.
(C) Maximum rate.--The assessment rate shall not be
in excess of $0.05 per concrete masonry unit.
(D) Limitation on frequency of changes.--The
assessment rate may not be increased or decreased more
than once annually.
(d) Late-Payment and Interest Charges.--
(1) In general.--Late-payment and interest charges may be
levied on each person subject to the order who fails to remit
an assessment in accordance with subsection (b).
(2) Rate.--The rate for late-payment and interest charges
shall be specified by the Secretary.
(e) Investment of Assessments.--Pending disbursement of assessments
under a budget approved by the Secretary, the Board may invest
assessments collected under this section in--
(1) obligations of the United States or any agency of the
United States;
(2) general obligations of any State or any political
subdivision of a State;
(3) interest-bearing accounts or certificates of deposit of
financial institutions that are members of the Federal Reserve
System; or
(4) obligations fully guaranteed as to principal and interest
by the United States.
(f) Assessment Funds for Regional Initiatives.--
(1) In general.--The order shall provide that no less than 50
percent of the assessments (less administration expenses) paid
by a manufacturer shall be used to support research, education,
and promotion programs and projects in support of the
geographic region of the manufacturer.
(2) Geographic regions.--The order shall provide for the
following geographic regions:
(A) Region I shall comprise Connecticut, Delaware,
the District of Columbia, Maine, Maryland,
Massachusetts, New Hampshire, New Jersey, New York,
Pennsylvania, Rhode Island, Vermont, and West Virginia.
(B) Region II shall comprise Alabama, Florida,
Georgia, Mississippi, North Carolina, South Carolina,
Tennessee, and Virginia.
(C) Region III shall comprise Illinois, Indiana,
Iowa, Kentucky, Michigan, Minnesota, Nebraska, North
Dakota, Ohio, South Dakota, and Wisconsin.
(D) Region IV shall comprise Arizona, Arkansas,
Kansas, Louisiana, Missouri, New Mexico, Oklahoma, and
Texas.
(E) Region V shall comprise Alaska, California,
Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah,
Washington, and Wyoming.
(3) Adjustment of geographic regions.--The order shall
provide that the Secretary may, upon recommendation of the
Board, modify the composition of the geographic regions
described in paragraph (2).
SEC. 7. REFERENDA.
(a) Initial Referendum.--
(1) Referendum required.--During the 60-day period
immediately preceding the proposed effective date of the order
issued under section 4, the Secretary shall conduct a
referendum among manufacturers eligible under subsection (b)(2)
subject to assessments under section 6.
(2) Approval of order needed.--The order shall become
effective only if the Secretary determines that the order has
been approved by a majority of manufacturers voting who also
represent a majority of the machine cavities in operation of
those manufacturers voting in the referendum.
(b) Votes Permitted.--
(1) In general.--Each manufacturer eligible to vote in a
referendum conducted under this section shall be entitled to
cast one vote.
(2) Eligibility.--For purposes of paragraph (1), a
manufacturer shall be considered to be eligible to vote if the
manufacturer has manufactured concrete masonry products during
a period of at least 180 days prior to the first day of the
period during which voting in the referendum will occur.
(c) Manner of Conducting Referenda.--
(1) In general.--Referenda conducted pursuant to this section
shall be conducted in a manner determined by the Secretary.
(2) Advance registration.--A manufacturer who chooses to vote
in any referendum conducted under this section shall register
with the Secretary prior to the voting period, after receiving
notice from the Secretary concerning the referendum under
paragraph (4).
(3) Voting.--The Secretary shall establish procedures for
voting in any referendum conducted under this section. The
ballots and other information or reports that reveal or tend to
reveal the identity or vote of voters shall be strictly
confidential.
(4) Notice.--Not later than 30 days before a referendum is
conducted under this section with respect to an order, the
Secretary shall notify all manufacturers, in such a manner as
determined by the Secretary, of the period during which voting
in the referendum will occur. The notice shall explain any
registration and voting procedures established under this
subsection.
(d) Subsequent Referenda.--If an order is approved in a referendum
conducted under subsection (a), the Secretary shall conduct a
subsequent referendum--
(1) at the request of the Board, subject to the voting
requirements of subsections (b) and (c), to ascertain whether
eligible manufacturers favor suspension, termination, or
continuance of the order; or
(2) effective beginning on the date that is 5 years after the
date of the approval of the order, and at 5-year intervals
thereafter, at the request of 25 percent or more of the total
number of persons eligible to vote under subsection (b).
(e) Suspension or Termination.--If, as a result of a referendum
conducted under subsection (d), the Secretary determines that
suspension or termination of the order is favored by a majority of all
votes cast in the referendum as provided in subsection (a)(2), the
Secretary shall--
(1) not later than 180 days after the referendum, suspend or
terminate, as appropriate, collection of assessments under the
order; and
(2) suspend or terminate, as appropriate, programs and
projects under the order as soon as practicable and in an
orderly manner.
(f) Costs of Referenda.--The Board established under an order with
respect to which a referendum is conducted under this section shall
reimburse the Secretary from assessments for any expenses incurred by
the Secretary to conduct the referendum.
SEC. 8. PETITION AND REVIEW.
(a) Petition.--
(1) In general.--A person subject to an order issued under
this Act may file with the Secretary a petition--
(A) stating that the order, any provision of the
order, or any obligation imposed in connection with the
order, is not established in accordance with law; and
(B) requesting a modification of the order or an
exemption from the order.
(2) Hearing.--The Secretary shall give the petitioner an
opportunity for a hearing on the petition, in accordance with
regulations issued by the Secretary.
(3) Ruling.--After the hearing, the Secretary shall make a
ruling on the petition. The ruling shall be final, subject to
review as set forth in subsection (b).
(4) Limitation on petition.--Any petition filed under this
subsection challenging an order, any provision of the order, or
any obligation imposed in connection with the order, shall be
filed not less than 2 years after the effective date of the
order, provision, or obligation subject to challenge in the
petition.
(b) Review.--
(1) Commencement of action.--The district courts of the
United States in any district in which a person who is a
petitioner under subsection (a) resides or conducts business
shall have jurisdiction to review the ruling of the Secretary
on the petition of the person, if a complaint requesting the
review is filed no later than 30 days after the date of the
entry of the ruling by the Secretary.
(2) Process.--Service of process in proceedings under this
subsection shall be conducted in accordance with the Federal
Rules of Civil Procedure.
(3) Remands.--If the court in a proceeding under this
subsection determines that the ruling of the Secretary on the
petition of the person is not in accordance with law, the court
shall remand the matter to the Secretary with directions--
(A) to make such ruling as the court shall determine
to be in accordance with law; or
(B) to take such further action as, in the opinion
the court, the law requires.
(c) Enforcement.--The pendency of proceedings instituted under this
section shall not impede, hinder, or delay the Attorney General or the
Secretary from obtaining relief under section 9.
SEC. 9. ENFORCEMENT.
(a) Jurisdiction.--A district court of the United States shall have
jurisdiction to enforce, and to prevent and restrain any person from
violating, this Act or an order or regulation issued by the Secretary
under this Act.
(b) Referral to Attorney General.--A civil action authorized to be
brought under this section shall be referred to the Attorney General of
the United States for appropriate action.
(c) Civil Penalties and Orders.--
(1) Civil penalties.--A person who willfully violates an
order or regulation issued by the Secretary under this Act may
be assessed by the Secretary a civil penalty of not more than
$5,000 for each violation.
(2) Separate offense.--Each violation and each day during
which there is a failure to comply with an order or regulation
issued by the Secretary shall be considered to be a separate
offense.
(3) Cease-and-desist orders.--In addition to, or in lieu of,
a civil penalty, the Secretary may issue an order requiring a
person to cease and desist from violating the order or
regulation.
(4) Notice and hearing.--No order assessing a penalty or
cease-and-desist order may be issued by the Secretary under
this subsection unless the Secretary provides notice and an
opportunity for a hearing on the record with respect to the
violation.
(5) Finality.--An order assessing a penalty or a cease-and-
desist order issued under this subsection by the Secretary
shall be final and conclusive unless the person against whom
the order is issued files an appeal from the order with the
appropriate district court of the United States.
(d) Additional Remedies.--The remedies provided in this Act shall be
in addition to, and not exclusive of, other remedies that may be
available.
SEC. 10. INVESTIGATION AND POWER TO SUBPOENA.
(a) Investigations.--The Secretary may conduct such investigations as
the Secretary considers necessary for the effective administration of
this Act, or to determine whether any person has engaged or is engaging
in any act that constitutes a violation of this Act or any order or
regulation issued under this Act.
(b) Subpoenas, Oaths, and Affirmations.--
(1) Investigations.--For the purpose of conducting an
investigation under subsection (a), the Secretary may
administer oaths and affirmations, subpoena witnesses, compel
the attendance of witnesses, take evidence, and require the
production of any records that are relevant to the inquiry. The
production of the records may be required from any place in the
United States.
(2) Administrative hearings.--For the purpose of an
administrative hearing held under section 8(a)(2) or section
9(c)(4), the presiding officer may administer oaths and
affirmations, subpoena witnesses, compel the attendance of
witnesses, take evidence, and require the production of any
records that are relevant to the inquiry. The attendance of
witnesses and the production of the records may be required
from any place in the United States.
(c) Aid of Courts.--
(1) In general.--In the case of contumacy by, or refusal to
obey a subpoena issued under subsection (b) to, any person, the
Secretary may invoke the aid of any court of the United States
within the jurisdiction of which the investigation or
proceeding is conducted, or where the person resides or
conducts business, in order to enforce a subpoena issued under
subsection (b).
(2) Order.--The court may issue an order requiring the person
referred to in paragraph (1) to comply with a subpoena referred
to in paragraph (1).
(3) Failure to obey.--Any failure to obey the order of the
court may be punished by the court as a contempt of court.
(4) Process.--Process in any proceeding under this subsection
may be served in the United States judicial district in which
the person being proceeded against resides or conducts
business, or wherever the person may be found.
SEC. 11. SUSPENSION OR TERMINATION.
(a) Mandatory Suspension or Termination.--The Secretary shall suspend
or terminate an order or a provision of an order if the Secretary finds
that an order or provision of an order obstructs or does not tend to
effectuate the purpose of this Act, or if the Secretary determines that
the order or a provision of an order is not favored by a majority of
all votes cast in the referendum as provided in section 7(a)(2).
(b) Implementation of Suspension or Termination.--If, as a result of
a referendum conducted under section 7, the Secretary determines that
the order is not approved, the Secretary shall--
(1) not later than 180 days after making the determination,
suspend or terminate, as the case may be, collection of
assessments under the order; and
(2) as soon as practicable, suspend or terminate, as the case
may be, activities under the order in an orderly manner.
SEC. 12. AMENDMENTS TO ORDERS.
The provisions of this Act applicable to the order shall be
applicable to any amendment to the order, except that section 8 shall
not apply to an amendment.
SEC. 13. EFFECT ON OTHER LAWS.
This Act shall not affect or preempt any other Federal or State law
authorizing research, education, and promotion relating to concrete
masonry products.
SEC. 14. REGULATIONS.
The Secretary may issue such regulations as may be necessary to carry
out this Act and the power vested in the Secretary under this Act.
SEC. 15. LIMITATION ON EXPENDITURES FOR ADMINISTRATIVE EXPENSES.
Funds appropriated to carry out this Act may not be used for the
payment of the expenses or expenditures of the Board in administering
the order.
SEC. 16. STUDY AND REPORT BY THE GOVERNMENT ACCOUNTABILITY OFFICE.
Not later than 5 years and 8 years after the date of enactment of
this Act, the Comptroller General of the United States shall prepare a
study and submit to Congress and the Secretary a report examining--
(1) how the Board spends assessments collected;
(2) the extent to which the Board's reported activities help
achieve its annual objectives;
(3) any changes in demand for concrete masonry products
relative to other building materials;
(4) any impact of the Board's activities on the market share
of competing products;
(5) any impact of the Board's activities on the overall size
of the market for building products;
(6) any impact of the Board's activities on the total number
of concrete masonry related jobs, including manufacturing,
sales, and installation;
(7) any significant effects of the Board's activities on
downstream purchasers of concrete masonry products and real
property into which concrete masonry products are incorporated;
(8) effects on prices of concrete masonry products as a
result of the Board's activities;
(9) the cost to the federal government of an increase in
concrete masonry product prices, if any, as a result of the
program established by this Act;
(10) the extent to which key statutory requirements are met;
(11) the extent and strength of federal oversight of the
program established by this Act;
(12) the appropriateness of administering the program from
within the Office of the Secretary of Commerce and the
appropriateness of administering the program from within any
division of the Department of Commerce, including whether the
Department has the expertise, knowledge, or other capabilities
necessary to adequately administer the program; and
(13) any other topic that the Comptroller General considers
appropriate.
SEC. 17. STUDY AND REPORT BY THE DEPARTMENT OF COMMERCE.
Not later than 3 years after the date of enactment of this Act, the
Secretary shall prepare a study and submit to Congress a report
examining the appropriateness and effectiveness of applying the
commodity check-off program model (such as those programs established
under subchapter II of chapter 101 of title 7, United States Code) to a
nonagricultural industry, taking into account the program established
by this Act and any other check-off program involving a nonagricultural
industry.
PURPOSE AND SUMMARY
The purpose of H.R. 985, the Concrete Masonry Products
Research, Education, and Promotion Act of 2015, is to enable
concrete masonry products manufacturers to establish, finance,
and carry out a ``check-off'' program--a coordinated program of
research, education, and promotion to improve, maintain, and
develop markets--for concrete masonry products.
BACKGROUND AND NEED FOR LEGISLATION
Designed to enable cooperation among generic commodity
products--such as beef, milk, mushrooms, peanuts, and certain
heating fuel products--check-off programs support generic
research, education, and promotion campaigns and are
established at the request of the affected industry. Funding
for check-off program activities typically comes from mandatory
fees assessed on relevant members of the affected industry.
Board members from industry producers carry out the check-off
program's activities, while the appropriate federal agency
oversees the Board to ensure compliance with the law and to
ensure resources support activities in furtherance of the
Board's purposes.
Most check-off programs cover agricultural commodities and
are authorized under the Commodity Promotion, Research, and
Information Act of 1996.\1\ Under that statute, the
Agricultural Marketing Service (AMS), a division of the U.S.
Department of Agriculture (USDA), is responsible for overseeing
at least 20 check-off programs.\2\ AMS is authorized to
establish new check-off programs and to promulgate regulations
fleshing out additional rules for each of the programs.
---------------------------------------------------------------------------
\1\Pub. L. No. 104-127.
\2\U.S. Department of Agriculture, Federal Research and Promotion
Programs (Jul. 27, 2015), (online at http://www.ams.usda.gov/ AMSv1.0/
ams.fetch Template Data.do?template=
TemplateB &leftNav=Research and Promotion&page=ResearchandPromotion).
---------------------------------------------------------------------------
The activities of each agricultural check-off program are
carried out and governed by a board appointed by the Secretary
of Agriculture from producers' nominations. All existing check-
off programs are funded and operated by the relevant
industries. According to the USDA, every $1 dollar spent in a
check-off program can yield an investment return as high as
$18.\3\
---------------------------------------------------------------------------
\3\U.S. Department of Agriculture, Industry Insight: Checkoff
Programs Empower Business (Sept. 21, 2011) (online at http://
blogs.usda.gov/2011/09/21/industry-insight-checkoff-
programs-empower-business).
---------------------------------------------------------------------------
In addition to the USDA administered programs, there are
also two check-off programs for heating fuel products. The
first involves propane and was authorized by the Propane
Education and Research Act of 1996.\4\ The second covers
heating oil, which was initially authorized by the National
Oilheat Research Alliance Act of 2000,\5\ and was recently
reauthorized by the 2014 Agricultural Act.\6\ The Department of
Energy oversees both programs. The intent of H.R. 985 is to
establish a similar check-off program for the concrete masonry
industry.
---------------------------------------------------------------------------
\4\Pub. L. No. 104-284.
\5\Pub. L. No. 106-469.
\6\Pub. L. No. 113-79.
---------------------------------------------------------------------------
HEARINGS
The Subcommittee on Commerce, Manufacturing, and Trade held
a hearing on H.R. 985 on July 10, 2015. The Subcommittee
received testimony from:
Ellen Herbst, Chief Financial Officer and
Assistant Secretary for Administration, U.S. Department
of Commerce;
Franklin Rusco, Director, Natural Resources
and Environment-Energy Issues, U.S. Government
Accountability Office;
Major Ogilvie, General Manager, Ready Mix
USA, LLC.;
Kent Waide, President, Ruby Concrete
Company; and
Kate Offringa, President, Vinyl Siding
Institute Incorporated.
COMMITTEE CONSIDERATION
On July 23, 2015, the Subcommittee on Commerce,
Manufacturing, and Trade met in open markup session and
forwarded H.R. 985 to the full Committee, as amended, by a
voice vote. On July 29, 2015, the full Committee on Energy and
Commerce met in open markup session and ordered H.R. 985
reported to the House, as amended, by a voice vote.
COMMITTEE VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto.
There were no record votes taken in connection with ordering
H.R. 985 reported.
COMMITTEE OVERSIGHT FINDINGS
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held a hearing and made
findings that are reflected in this report.
STATEMENT OF GENERAL PERFORMANCE GOALS AND OBJECTIVES
The goal of H.R. 985 is to enable concrete masonry products
manufacturers to establish, finance, and carry out a ``check-
off'' program--a coordinated program of research, education,
and promotion to improve, maintain, and develop markets--for
concrete masonry products.
NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee finds that H.R.
985 would result in no new or increased budget authority,
entitlement authority, or tax expenditures or revenues.
EARMARK, LIMITED TAX BENEFITS, AND LIMITED TARIFF BENEFITS
In compliance with clause 9(e), 9(f), and 9(g) of rule XXI
of the Rules of the House of Representatives, the Committee
finds that H.R. 985 contains no earmarks, limited tax benefits,
or limited tariff benefits.
COMMITTEE COST ESTIMATE
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
CONGRESSIONAL BUDGET OFFICE ESTIMATE
U.S. Congress,
Congressional Budget Office,
Washington, DC, September 4, 2015.
Hon. Fred Upton,
Chairman, Committee on Energy and Commerce
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 985, the Concrete
Masonry Products Research, Education, and Promotion Act of
2015.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Susan Willie.
Sincerely,
Keith Hall.
Enclosure.
H.R. 985--Concrete Masonry Products Research, Education, and Promotion
Act of 2015
Summary: H.R. 985 would establish the Concrete Masonry
Products Board (Board), upon approval of a referendum by
producers of masonry products made from concrete (CMP), such as
cinder blocks. The Board would develop research and education
programs as well as efforts to promote CMP in domestic markets.
Funding for those activities would be derived from assessments
on CMP manufacturers based on the number of masonry units sold
each year. The bill would direct the Secretary of Commerce to
organize and hold the referendum; the agency's costs would be
reimbursed by the Board from initial collections of
assessments.
CBO estimates that enacting H.R. 985 would increase direct
spending by $111 million and increase net revenues by $85
million over the 2016-2025 period, leading to a net increase in
the deficit of $26 million over the 10-year period. Pay-as-you-
go procedures apply because enacting the legislation would
affect direct spending and revenues. In addition, CBO estimates
that implementing H.R. 985 would cost $2 million over the 2016-
2020 period; such spending would be subject to the availability
of appropriated funds.
H.R. 985 contains no intergovernmental mandates as defined
in the Unfunded Mandates Reform Act (UMRA) and would not affect
the budgets of state, local, or tribal governments.
H.R. 985 would impose private-sector mandates on
manufacturers of CMP. Based on information from industry
experts, CBO estimates that the annual cost of the mandates
would fall well below the threshold established in UMRA for
private-sector mandates ($154 million in 2015, adjusted
annually for inflation).
Estimated cost to the Federal Government: The estimated
budgetary effects of H.R. 985 are shown in the following table.
The costs of this legislation fall within budget function 370
(commerce and housing credit).
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016-2020 2016-2025
--------------------------------------------------------------------------------------------------------------------------------------------------------
CHANGES IN DIRECT SPENDING
Estimated Budget Authority.................................. 0 9 12 12 13 13 13 14 14 14 46 114
Estimated Outlays........................................... 0 6 12 12 13 13 13 14 14 14 43 111
CHANGES IN REVENUESa
Estimated Revenues.......................................... 0 7 9 9 10 10 10 10 10 10 35 85
NET INCREASE OR DECREASE (-) IN THE DEFICIT FROM CHANGES IN DIRECT SPENDING AND REVENUES
Impact on Deficit........................................... 0 -1 3 3 3 3 3 4 4 4 8 26
--------------------------------------------------------------------------------------------------------------------------------------------------------
Notes: Components may not sum to totals because of rounding.
CBO estimates that implementing H.R. 985 would cost about $2 million over the 2016-2020 period for administrative costs and reports; such spending would
be subject to the availability of appropriated funds.
aWhen excise taxes and other types of revenue, such as assessments by the Board, are imposed on goods or services, they tend to reduce income for
workers or business owners in that industry and through the economy. As a consequence, revenue derived from other tax sources--such as income and
payroll taxes--will be diminished. As a result, CBO applies an offset when estimating the net revenue effect for proposals that generate such indirect
tax. The amount of the offset ranges from 25.6 percent in 2016 to 26.2 percent in 2025.
Basis of estimate: In CBO's view, the Board that would be
established under H.R. 985 should be considered to be acting on
behalf of the federal government, thus all of its financial
transactions should be reflected in the federal budget. While
the Board would be formed only upon approval by a majority of
the producers of CMP, once created, the requirement to pay
assessments would be compulsory and could be enforced by the
federal government's sovereign authority.
Based on information from industry representatives, CBO
anticipates that the referendum would be approved by the
industry and that the Board and supporting staff would be
appointed near the end fiscal year 2016. We expect that
assessments would be collected beginning in the first half of
fiscal year 2017; the bill would require assessments to be paid
quarterly.
While the bill would apply to producers of both concrete
block and concrete pavers, CBO expects that only producers of
concrete block would participate in the referendum. Because
there is little differentiation among concrete blocks across
manufacturers, all producers of concrete blocks would benefit
from an industry-wide research and promotion program.
Manufacturers of concrete pavers, on the other hand, are able
to distinguish their products in a way that allows consumers to
recognize individual brands. Consequently, those producers have
little incentive to participate in an industry-wide marketing
effort. Based on information from manufacturers of concrete
pavers, CBO expects that those producers would not participate
in the referendum.
Direct spending
H.R. 985 would authorize the Board to spend amounts
collected, without further appropriation, on research and
education efforts as well as on programs to promote sales of
CMP. The bill also would authorize the Board to borrow funds to
cover the Board's start-up expenses and to invest collections
in interest-bearing securities issued by the Treasury, thereby
generating additional funding for its activities. Expenditures
of assessments and accrued interest would be considered direct
spending. Based on historical patterns for similar activities,
CBO estimates that expenditures by the proposed Board would
total $111 million over the 2016-2025 period.
Revenues
H.R. 985 would authorize the Board to levy an assessment of
one cent on each concrete block product sold by all CMP
manufacturers in the United States. Based on information from
industry experts and historical sales information, CBO expects
about 1.2 billion concrete blocks will be sold in 2016 and we
expect sales to grow with inflation, yielding, on average,
estimated collections of $13 million per year. Those amounts
would be recorded in the budget as revenues, because payment of
the assessments would be compulsory, and could be enforced by
federal courts. CBO estimates that enacting H.R. 985 would
increase gross revenues by $114 million over the 2016-2025
period.
Because excise taxes and other indirect business taxes
(such as assessments by the Board) reduce the base of income
and payroll taxes, higher amounts of those indirect business
taxes would lead to reductions in revenues from income and
payroll taxes. As a result, gross assessments would be
partially offset by a loss of receipts of about 25 percent each
year. Thus, CBO estimates that enacting H.R. 985 would increase
net revenues by $85 million over the 2016-2025 period.
Spending subject to appropriation
H.R. 985 would direct the Secretary of Commerce to develop
an order to establish the Board and set out its authorities,
and to conduct a referendum among eligible CMP manufacturers to
approve the order. After passage of the referendum, the
Secretary would be responsible for approving the Board's
programs and budgets each year. The bill also would direct the
Secretary of Commerce and the Government Accountability Office
to prepare several reports for the Congress to explain the
effect the Board has on the concrete masonry block industry and
the effectiveness of the referendum model on a nonagricultural
industry.
Based on the cost of similar reports and activities, CBO
estimates that implementing those provisions would cost about
$2 million over the 2016-2020 period, assuming the availability
of appropriated funds.
Pay-As-You-Go considerations: The Statutory Pay-As-You-Go
Act of 2010 establishes budget-reporting and enforcement
procedures for legislation affecting direct spending or
revenues. The net changes in outlays and revenues that are
subject to those pay-as-you-go procedures are shown in the
following table.
CBO Estimate of Pay-As-You-Go Effects for H.R. 985 as ordered reported by the House Committee on Energy and Commerce on July 29, 2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------------------------------------------
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2016-2020 2016-2025
--------------------------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE OR DECREASE (-) IN THE DEFICIT
Statutory Pay-As-You-Go Impact.............................. 0 -1 3 3 3 3 3 4 4 4 8 26
Memorandum:
Changes in Outlays...................................... 0 6 12 12 13 13 13 14 14 14 43 111
Changes in Revenues..................................... 0 7 9 9 10 10 10 10 10 10 35 85
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding.
Estimated impact on state, local, and tribal governments:
H.R. 985 contains no intergovernmental mandates as defined in
UMRA and would not affect the budgets of state, local, or
tribal governments.
Estimated impact on the private sector: H.R. 985 would
impose private-sector mandates on manufacturers of concrete
masonry products, such as cinder blocks. Those manufacturers
would be required to pay to the Board an assessment of one cent
per masonry unit sold. CBO estimates that the cost of this
mandate would amount to about $13 million annually on average.
The bill also would impose mandates on CMP manufacturers by
requiring them to maintain records and make those records
available for inspection as required by the Board. Based on
information from industry experts, the cost of complying with
the recordkeeping requirements would be small. Consequently,
CBO estimates that the aggregate cost of the private-sector
mandates in the bill would fall well below the annual threshold
established in UMRA ($154 million in 2015, adjusted annually
for inflation).
Estimate prepared by: Federal costs: Susan Willie; Impact
on state, local, and tribal governments: Melissa Merrell;
Impact on the private sector: Logan Smith.
Estimate approved by: H. Samuel Papenfuss, Deputy Assistant
Director for Budget Analysis.
FEDERAL MANDATES STATEMENT
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
DUPLICATION OF FEDERAL PROGRAMS
No provision of H.R. 985 establishes or reauthorizes a
program of the Federal Government known to be duplicative of
another Federal program, a program that was included in any
report from the Government Accountability Office to Congress
pursuant to section 21 of Public Law 111-139, or a program
related to a program identified in the most recent Catalog of
Federal Domestic Assistance.
DISCLOSURE OF DIRECTED RULE MAKINGS
The Committee estimates that enacting H.R. 985 specifically
directs to be completed 1 rulemaking within the meaning of 5
U.S.C. 551.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
APPLICABILITY TO LEGISLATIVE BRANCH
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION
Section 1. Short title
Section 1 provides that this Act may be cited as the
``Concrete Masonry Products Research, Education, and Promotion
Act of 2015.''
Section 2. Declaration of policy
Section 2 sets forth the purpose of the Act to establish a
program that strengthens the market position and promotes the
use of concrete masonry products.
Section 3. Definitions
Section 3 sets forth definitions for terms contained within
the Act.
Section 4. Issuance of orders
Section 4 authorizes the Secretary of the Department of
Commerce to issue orders under this Act that are applicable to
manufacturers of concrete masonry products. It also sets forth
procedures the Secretary must follow in issuing a proposed
order, amending a current order, and making orders available
for public comment and review.
Section 5. Required terms in orders
Section 5 sets forth the specified terms and conditions
that an order must contain. This section authorizes the
establishment of a Concrete Masonry Products Board, the
criteria for board membership, and the powers and duties of the
board in carrying out the promotion, research, and education
programs related to concrete masonry products.
Section 6. Assessments
Section 6 requires and authorizes the collection of
mandatory assessments paid by manufacturers of concrete masonry
products manufactured and marketed in the United States. It
also sets forth the collection processes of the assessment and
details how the assessments must be disbursed to support
research, education, and promotion programs and projects.
Section 7. Referenda
Section 7 requires the Secretary to conduct a referendum
among manufacturers required to pay the assessments to formally
adopt an order under this Act. The Secretary will deem the
order in effect only if it has been approved by a majority of
manufacturers voting who also represent a majority of the
machine cavities in operation of those manufacturers voting in
the referendum. This section also sets forth the terms of
eligibility among manufacturers to participate and cast votes
on the referendum.
Section 8. Petition and review
Section 8 authorizes concrete masonry product manufacturers
covered by an order to file a petition challenging the legality
of the order. It also authorizes manufacturers to file a
petition requesting a modification to the order or an exemption
from the order.
Section 9. Enforcement
Section 9 gives U.S. District courts authority to enforce
this Act. It also authorizes the U.S. Attorney General to bring
civil actions. It establishes civil penalties and orders for
violations of the Act of not more than $5,000 for each
violation. It also provides that any remedies for enforcement
listed in this Act are in addition to, and not exclusive of,
other remedies that may be available.
Section 10. Investigation and power to subpoena
Section 10 authorizes the Secretary to conduct
investigations, issue subpoenas, and take other actions to
determine whether any persons are engaging in conduct that
violates the Act.
Section 11. Suspension or termination
Section 11 gives the Secretary authority to suspend or
terminate an order or provision of an order that obstructs or
does not effectuate the purpose of the Act. It also gives the
Secretary authority to suspend or terminate the collection of
assessments under an order and all other activities if it is
determined that the order is not approved as a result of a
referendum conducted under
Section 7.
Section 12. Amendments to orders
Section 12 establishes that all the provisions of the Act
that are applicable to the order will be applicable to any
amendment to the order, except Section 8 will not apply to an
amendment.
Section 13. Effect on other laws
Section 13 establishes that this Act will not affect or
preempt any other Federal or State laws authorizing research,
education, and promotion relating to concrete masonry products.
Section 14. Regulations
Section 14 authorizes the Secretary to issue regulations
that may be necessary under the power vested in the Secretary
under this Act to carry out the Act.
Section 15. Limitation on expenditures for administrative expenses
Section 15 prohibits the use of any funds appropriated to
carry out the Act to be used for the payment of expenses or
expenditures of the Board in administering the order.
Section 16. Study and report by the Government Accountability Office
Section 16 requires the Government Accountability Office to
conduct two studies examining several factors related to the
efficacy of the program. The first study must be submitted to
Congress no later than five years after the Act's enactment,
and the second study must be submitted no later than eight
years after the Act's enactment.
Section 17. Study and report by the Department of Commerce
Section 17 requires the Department of Commerce to prepare a
study and submit to Congress a report examining the
appropriateness and effectiveness of applying the Department of
Agriculture's check-off program model to other non-agricultural
industries.
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
This legislation does not amend any existing Federal
statute.
[all]