15 U.S.C. § 8704 — Required terms in orders

(a) Every order^* issued under this chapter must contain the terms and provisions described in this section.
(b) Concrete Masonry Products Board^*.
(1) Establishment and membership.
(A) Establishment. The order must establish a Concrete Masonry Products Board. The Board carries out a program of generic promotion^*, research^*, and education^* about concrete masonry products.
(B) Membership.
(i) Number of members. The Board must have at least 15 and no more than 25 members.
(ii) Appointment. The Secretary^* must appoint the members from nominations submitted as the order provides.
(iii) Composition. The members must be manufacturers. An employee of an industry trade organization that is exempt from tax under paragraph (3) or (6) of section 501(c) of title 26 and represents the concrete masonry industry or related industries may not serve on the Board. A Board member may not at the same time be an officer of the board of directors of a national concrete masonry products industry trade association. At any one time, no more than two individuals from one company or its affiliates may serve on the Board.
(2) Distribution of appointments.
(A) Representation. To ensure fair and equal representation of the concrete masonry products industry, the Board’s membership must reflect the geographic distribution of concrete masonry manufacturing in the United States^*, the kinds of concrete masonry products made, and the range of manufacturer^* sizes in the United States.
(B) Adjustment in Board representation. Three years after the assessment of concrete masonry products begins under an order, and at the end of every three-year period after that, the Board must, if warranted and subject to the Secretary’s review and approval, recommend that the Secretary reapportion the Board’s membership. The recommendation must reflect changes in the geographic distribution of concrete masonry manufacturing and in the kinds of concrete masonry products made.
(3) Nominations process. The Secretary may appoint members from manufacturers’ nominations, using the method stated in the order.
(4) Failure to appoint. If the Secretary does not make an appointment within 60 days after receiving the nominations for that appointment, the first nominee is deemed appointed. This does not happen if the Secretary gives the Board and Congress a reasonable explanation for the delay and a reasonable date by which the Secretary will approve or reject the appointment.
(5) Alternates. The order must provide for the Secretary to select alternate Board members under procedures stated in the order.
(6) Terms.
(A) In general. Each member and alternate serves for three years. However, the order may provide that members and alternates first appointed serve initial terms of no more than two, three, and four years.
(B) Limitation on consecutive terms. A member or alternate may serve no more than two consecutive terms.
(C) Continuation of term. Despite subparagraph (B), each member or alternate continues serving until the Secretary appoints a successor.
(D) Vacancies. The order must provide how to fill a vacancy that occurs before a Board member’s or alternate’s term ends.
(7) Disqualification from Board service. The order must provide that a member or alternate appointed as a manufacturer is disqualified from serving if that person^* stops qualifying as a manufacturer.
(8) Compensation.
(A) In general. Members and alternates serve without pay.
(B) Travel expenses. If the Board approves, it must reimburse members and alternates for reasonable travel expenses. These expenses may include a per diem allowance or actual subsistence costs incurred while the person is away from home or the person’s regular place of business while performing Board services.
(c) Powers and duties of the Board. The order must specify the Board’s powers and duties, including the power and duty—
(1) to administer the order according to its terms and conditions and collect assessments;
(2) to develop and recommend to the Secretary for approval bylaws needed for the Board to function and rules needed to administer the order, including rules for activities authorized under the order;
(3) to meet and organize, and choose from among its members a chairperson, other officers, and committees and subcommittees as the Board considers appropriate;
(4) to establish regional organizations or committees to administer regional initiatives;
(5) to establish working committees made up of people who are not Board members;
(6) to employ people other than Board members whom the Board considers necessary, determine their pay, and state their duties;
(7) to prepare and submit to the Secretary for approval, before each fiscal year begins, assessment rates under section 8705 and an annual budget of expected expenses for administering the order, including the probable cost of each proposed promotion, research, and information activity;
(8) to borrow money needed for the order’s startup expenses;
(9) to carry out generic research, education, and promotion programs and projects about concrete masonry products and pay their costs with assessments collected under section 8705;
(10) subject to subsection (e), to enter into contracts or agreements to develop and carry out research, education, and promotion programs or projects about concrete masonry products;
(11) to keep minutes, books, and records showing the Board’s actions and transactions and promptly report the minutes of each Board meeting to the Secretary;
(12) to receive, investigate, and report to the Secretary complaints that the order was violated;
(13) to give the Secretary information the Secretary requests;
(14) to recommend amendments to the order that the Board considers appropriate; and
(15) to give the Secretary advance notice of meetings so the Secretary or the Secretary’s representative can attend.
(d) Programs and projects; budgets; expenses.
(1) Programs and projects.
(A) In general. The order must require the Board to submit to the Secretary for approval every research, education, or promotion program or project about concrete masonry products.
(B) Statement required. Every educational or promotional activity paid for with Board funds must state that the Board supported the activity in whole or in part.
(2) Budgets.
(A) Submission. The order must require the Board to submit to the Secretary for approval a budget of the Board’s expected expenses and payments in carrying out the order. The budget must include projected costs of concrete masonry products research, education, and promotion programs and projects.
(B) Timing. The budget must be submitted before the fiscal year begins and as often as needed after the fiscal year begins.
(C) Approval. If the Secretary does not approve or reject a budget within 60 days after receiving it, the budget is deemed approved. This does not happen if the Secretary gives the Board and Congress, in writing, a reasonable explanation for the delay and a reasonable date by which approval or rejection will occur.
(3) Administrative expenses.
(A) Incurring expenses. The Board may incur the expenses described in paragraph (2) and other expenses for administering, maintaining, and operating the Board, as the Secretary authorizes.
(B) Payment of expenses. The Board must pay those expenses with assessments collected under section 8705, earnings from assessments, and the Board’s other income. The Board may spend borrowed money only for startup costs and capital purchases.
(C) Limitation on spending. For fiscal years beginning at least three years after the Board is established, the Board may not spend more than 10 percent of the assessments and other income it receives during that fiscal year on administration^*, maintenance, and operation. This limit does not include reimbursement to the Secretary required under subparagraph (D).
(D) Reimbursement of Secretary. The order must require the Board to reimburse the Secretary from assessments for every expense the Secretary incurs in carrying out, administering, and supervising the order, including referendum costs connected with the order.
(e) Contracts and agreements.
(1) In general. With the Secretary’s approval, the Board may—
(A) enter into contracts and agreements to carry out generic research, education, and promotion programs and projects about concrete masonry products, including contracts and agreements with manufacturer associations or other entities the Secretary considers appropriate;
(B) enter into contracts and agreements for administrative services; and
(C) pay for approved generic research, education, and promotion programs and projects with assessments collected under section 8705, earnings from assessments, and other Board income.
(2) Requirements. Every contract or agreement must require each person entering into it with the Board to—
(A) develop and submit to the Board a proposed program or project and a budget stating the cost of carrying it out;
(B) keep accurate records of every transaction related to the contract or agreement;
(C) account for money received and spent in connection with the contract or agreement;
(D) give the Board periodic reports about activities under the contract or agreement; and
(E) give other reports that the Board or Secretary considers relevant.
(3) Failure to approve. If the Secretary does not approve or reject a contract or agreement under paragraph (1) within 60 days after receiving it, the contract or agreement is deemed approved. This does not happen if the Secretary gives the Board and Congress, in writing, a reasonable explanation for the delay and a reasonable date by which approval or rejection will occur.
(f) Books and records of Board.
(1) In general. The order must require the Board to—
(A) keep the books and records the Secretary requires, which must be available to the Secretary for inspection and audit;
(B) collect and submit to the Secretary, whenever the Secretary specifies, information the Secretary requests; and
(C) account for receiving and paying out all money in the Board’s possession or control.
(2) Audits. The order must require the Board to have—
(A) an independent auditor audit the Board’s books and records at the end of every fiscal year; and
(B) the audit report sent directly to the Secretary.
(g) Prohibited activities.
(1) In general. Subject to paragraph (2), the Board may not carry out a program or project, and may not use money received under this chapter, to—
(A) influence legislation, elections, or government action;
(B) take an action that would be a conflict of interest^*;
(C) use false or misleading advertising;
(D) carry out promotion, research, or education that disparages other construction materials; or
(E) carry out promotion or a project that would benefit one particular manufacturer.
(2) Exceptions. Paragraph (1) does not prevent—
(A) developing and recommending amendments to the order;
(B) communicating to appropriate government officials information about the conduct, implementation, or results of research, education, and promotion activities under the order, except communications described in paragraph (1)(A); or
(C) lawful action designed to market concrete masonry products directly to a foreign government or a political subdivision of a foreign government.
(h) Periodic evaluation. The order must require the Board to arrange an independent evaluation of every research, education, and promotion program or project carried out under the order. The evaluations begin five years after October 5, 2018, and occur every three years after that. The Board must submit each evaluation’s results to the Secretary and make them available to the public.
(i) Objectives. For each fiscal year, the Board must set annual research, education, and promotion objectives and performance measures. The Secretary must approve them.
(j) Biennial report. Every two years, the Board must prepare and make public a complete and detailed report. The report must identify and describe all programs and projects the Board carried out during the previous two years and those planned for the next two years. It must detail the Board resources allocated or planned to be allocated to each program or project. The report must also include—
(1) the Board’s overall financial condition;
(2) a summary of amounts obligated or spent during the two preceding fiscal years; and
(3) the extent to which the Board met its objectives, measured using the performance measures required under subsection (i).
(k) Books and records of persons covered by order.
(1) In general. The order must require manufacturers to—
(A) keep records sufficient to show compliance with the order and regulations; and
(B) make those records available during normal business hours for inspection by Board or Department^* employees or agents.
(2) Time requirement. Manufacturers must keep each required record for the period the Secretary prescribes.
(3) Confidentiality of information.
(A) In general. Unless this paragraph provides otherwise, officers, employees, and agents of the Department or the Board may not disclose trade secrets or privileged or confidential commercial or financial information reported to, or otherwise obtained by, the Board or the Secretary, or by a representative of either, under this chapter.
(B) Suits and hearings. Information described in subparagraph (A) may be disclosed only if the Secretary considers it relevant and it is revealed in a judicial proceeding or administrative hearing brought at the Secretary’s direction or request, or in which the Secretary or a Department officer is a party.
(C) General statements and publications. This paragraph does not prohibit—
(i) general statements based on reports or information about several people subject to an order, if the statements do not identify information supplied by any one person; or
(ii) publication, at the Secretary’s direction, of the name of a person violating an order and a statement of the particular order provisions that person violated.
(D) Penalty. A Department of Commerce officer, employee, or agent, or a Board officer, employee, or agent, who willfully violates this paragraph may be fined up to $1,000, imprisoned for up to one year, or both.
(4) Withholding information. This subsection does not authorize withholding information from Congress.