[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 374 Reported in Senate (RS)]

<DOC>





                                                       Calendar No. 365
115th CONGRESS
  2d Session
                                 S. 374

                          [Report No. 115-218]

    To enable concrete masonry products manufacturers to establish, 
 finance, and carry out a coordinated program of research, education, 
 and promotion to improve, maintain, and develop markets for concrete 
                           masonry products.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 14, 2017

Mr. Blunt (for himself, Mr. Nelson, Mr. Peters, Mr. Roberts, Mr. Moran, 
  Mr. Burr, Ms. Klobuchar, Mr. Manchin, Mr. Wicker, Mrs. Capito, Mr. 
 Isakson, and Mr. Crapo) introduced the following bill; which was read 
     twice and referred to the Committee on Commerce, Science, and 
                             Transportation

                             March 22, 2018

                Reported by Mr. Thune, without amendment

_______________________________________________________________________

                                 A BILL


 
    To enable concrete masonry products manufacturers to establish, 
 finance, and carry out a coordinated program of research, education, 
 and promotion to improve, maintain, and develop markets for concrete 
                           masonry products.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Concrete Masonry Products Research, 
Education, and Promotion Act of 2017''.

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) 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.
            (5) 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.
            (6) 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.
            (7) Department.--The term ``Department'' means the 
        Department of Commerce.
            (8) 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.
            (9) 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, 
        multifamily, and institutional projects using concrete masonry 
        products and to generally enhance the image of concrete masonry 
        products.
            (10) Machine cavities.--The term ``machine cavities'' means 
        the cavities with which a block machine could be equipped.
            (11) 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.
            (12) Manufacturer.--The term ``manufacturer'' means any 
        person engaged in the manufacturing of commercial concrete 
        masonry products in the United States.
            (13) 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.
            (14) Order.--The term ``order'' means an order issued under 
        section 4.
            (15) Person.--The term ``person'' means any individual, 
        group of individuals, partnership, corporation, association, 
        cooperative, or any other entity.
            (16) 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.
            (17) 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.
            (18) Secretary.--The term ``Secretary'' means the Secretary 
        of Commerce.
            (19) 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 
                        paragraph (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 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 5 
years after the date of enactment of this Act and every 3 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 2 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 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 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 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--
                    (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 paragraph, 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 
                paragraph 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 
                of 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. 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 estimated 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 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, less the 
        estimate made pursuant to paragraph (1) for such most recent 
        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 Account.--Assessments 
collected under section 6 in excess of the amount permitted to be 
obligated under subsection (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 Account.--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 obligation 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 account that does not exceed \1/5\ of the amount 
in the escrow 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 paragraph (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 
        report 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.
            (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 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. 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 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.
                                                       Calendar No. 365

115th CONGRESS

  2d Session

                                 S. 374

                          [Report No. 115-218]

_______________________________________________________________________

                                 A BILL

    To enable concrete masonry products manufacturers to establish, 
 finance, and carry out a coordinated program of research, education, 
 and promotion to improve, maintain, and develop markets for concrete 
                           masonry products.

_______________________________________________________________________

                             March 22, 2018

                       Reported without amendment