---
kind: "section"
citation: "15 U.S.C. § 8704"
title: "15"
title_heading: "Commerce and Trade"
number: "8704"
heading: "Required terms in orders"
release: "119-102"
url: "https://uscodex.org/usc/15/8704"
units:
  - "Chapter 113 — Concrete Masonry Products Research, Education, and Promotion"
---

# §8704. Required terms in orders

- (a) **In general—** Any [order](/usc/15/8702.md?p=14) issued under this chapter shall contain the terms and provisions specified in this section.
- (b) **Concrete Masonry Products Board—**
  - (1) **Establishment and membership—**
    - (A) **Establishment—** The [order](/usc/15/8702.md?p=14) shall provide for the establishment of a [Concrete Masonry Products](/usc/15/8702.md?p=4) [Board](/usc/15/8702.md?p=2) to carry out a program of generic [promotion](/usc/15/8702.md?p=16), [research](/usc/15/8702.md?p=17), and [education](/usc/15/8702.md?p=9) regarding [concrete masonry products](/usc/15/8702.md?p=4).
    - (B) **Membership—**
      - (i) **Number of members—** The [Board](/usc/15/8702.md?p=2) shall consist of not fewer than 15 and not more than 25 members.
      - (ii) **Appointment—** The members of the [Board](/usc/15/8702.md?p=2) shall be appointed by the [Secretary](/usc/15/8702.md?p=18) from nominations submitted as provided in the [order](/usc/15/8702.md?p=14).
      - (iii) **Composition—** The [Board](/usc/15/8702.md?p=2) shall consist of [manufacturers](/usc/15/8702.md?p=12). No employee of an industry trade organization exempt from tax under paragraph (3) or (6) of [section 501(c) of title 26](/usc/26/501.md?p=c) representing the concrete masonry industry or related industries shall serve as a member of the [Board](/usc/15/8702.md?p=2) and no member of the [Board](/usc/15/8702.md?p=2) may serve concurrently as an officer of the [board](/usc/15/8702.md?p=2) of directors of a national [concrete masonry products](/usc/15/8702.md?p=4) industry trade association. Only 2 individuals from any single company or its affiliates may serve on the [Board](/usc/15/8702.md?p=2) at any one time.
  - (2) **Distribution of appointments—**
    - (A) **Representation—** To ensure fair and equitable representation of the [concrete masonry products](/usc/15/8702.md?p=4) industry, the composition of the [Board](/usc/15/8702.md?p=2) shall reflect the geographical distribution of the manufacture of [concrete masonry products](/usc/15/8702.md?p=4) in the [United States](/usc/15/8702.md?p=19), the types of [concrete masonry products](/usc/15/8702.md?p=4) manufactured, and the range in size of [manufacturers](/usc/15/8702.md?p=12) in the [United States](/usc/15/8702.md?p=19).
    - (B) **Adjustment in Board representation—** Three years after the assessment of [concrete masonry products](/usc/15/8702.md?p=4) commences pursuant to an [order](/usc/15/8702.md?p=14), and at the end of each 3-year period thereafter, the [Board](/usc/15/8702.md?p=2), subject to the review and approval of the [Secretary](/usc/15/8702.md?p=18), shall, if warranted, recommend to the [Secretary](/usc/15/8702.md?p=18) the reapportionment of the [Board](/usc/15/8702.md?p=2) membership to reflect changes in the geographical distribution of the manufacture of [concrete masonry products](/usc/15/8702.md?p=4) and the types of [concrete masonry products](/usc/15/8702.md?p=4) manufactured.
  - (3) **Nominations process—** The [Secretary](/usc/15/8702.md?p=18) may make appointments from nominations by [manufacturers](/usc/15/8702.md?p=12) pursuant to the method set forth in the [order](/usc/15/8702.md?p=14).
  - (4) **Failure to appoint—** If the [Secretary](/usc/15/8702.md?p=18) fails to make an appointment to the [Board](/usc/15/8702.md?p=2) within 60 days of receiving nominations for such appointment, the first nominee for such appointment shall be deemed appointed, unless the [Secretary](/usc/15/8702.md?p=18) provides reasonable justification for the delay to the [Board](/usc/15/8702.md?p=2) and to Congress and provides a reasonable date by which approval or disapproval will be made.
  - (5) **Alternates—** The [order](/usc/15/8702.md?p=14) shall provide for the selection of alternate members of the [Board](/usc/15/8702.md?p=2) by the [Secretary](/usc/15/8702.md?p=18) in accordance with procedures specified in the [order](/usc/15/8702.md?p=14).
  - (6) **Terms—**
    - (A) **In general—** The members and any alternates of the [Board](/usc/15/8702.md?p=2) shall each serve for a term of 3 years, except that members and any alternates initially appointed to the [Board](/usc/15/8702.md?p=2) shall serve for terms of not more than 2, 3, and 4 years, as specified by the [order](/usc/15/8702.md?p=14).
    - (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)](#b-6-B), each member or alternate shall continue to serve until a successor is appointed by the [Secretary](/usc/15/8702.md?p=18).
    - (D) **Vacancies—** A vacancy arising before the expiration of a term of office of an incumbent member or alternate of the [Board](/usc/15/8702.md?p=2) shall be filled in a manner provided for in the [order](/usc/15/8702.md?p=14).
  - (7) **Disqualification from Board service—** The [order](/usc/15/8702.md?p=14) shall provide that if a member or alternate of the [Board](/usc/15/8702.md?p=2) who was appointed as a [manufacturer](/usc/15/8702.md?p=12) ceases to qualify as a [manufacturer](/usc/15/8702.md?p=12), such member or alternate shall be disqualified from serving on the [Board](/usc/15/8702.md?p=2).
  - (8) **Compensation—**
    - (A) **In general—** Members and any alternates of the [Board](/usc/15/8702.md?p=2) shall serve without compensation.
    - (B) **Travel expenses—** If approved by the [Board](/usc/15/8702.md?p=2), 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](/usc/15/8702.md?p=2).
- (c) **Powers and duties of the Board—** The [order](/usc/15/8702.md?p=14) shall specify the powers and duties of the [Board](/usc/15/8702.md?p=2), including the power and duty—
  - (1) to administer the [order](/usc/15/8702.md?p=14) in accordance with its terms and conditions and to collect assessments;
  - (2) to develop and recommend to the [Secretary](/usc/15/8702.md?p=18) for approval such bylaws as may be necessary for the functioning of the [Board](/usc/15/8702.md?p=2) and such rules as may be necessary to administer the [order](/usc/15/8702.md?p=14), including activities authorized to be carried out under the [order](/usc/15/8702.md?p=14);
  - (3) to meet, organize, and select from among members of the [Board](/usc/15/8702.md?p=2) a chairperson, other officers, and committees and subcommittees, as the [Board](/usc/15/8702.md?p=2) determines appropriate;
  - (4) to establish regional organizations or committees to administer regional initiatives;
  - (5) to establish working committees of [persons](/usc/15/8702.md?p=15) other than [Board](/usc/15/8702.md?p=2) members;
  - (6) to employ such [persons](/usc/15/8702.md?p=15), other than the members, as the [Board](/usc/15/8702.md?p=2) considers necessary, and to determine the compensation and specify the duties of the [persons](/usc/15/8702.md?p=15);
  - (7) to prepare and submit for the approval of the [Secretary](/usc/15/8702.md?p=18), before the beginning of each fiscal year, rates of assessment under [section 8705 of this title](/usc/15/8705.md) and an annual budget of the anticipated expenses to be incurred in the [administration](/usc/15/636e.md?p=1) of the [order](/usc/15/8702.md?p=14), including the probable cost of each [promotion](/usc/15/8702.md?p=16), [research](/usc/15/8702.md?p=17), and information activity proposed to be developed or carried out by the [Board](/usc/15/8702.md?p=2);
  - (8) to borrow funds necessary for the startup expenses of the [order](/usc/15/8702.md?p=14);
  - (9) to carry out generic [research](/usc/15/8702.md?p=17), [education](/usc/15/8702.md?p=9), and [promotion](/usc/15/8702.md?p=16) programs and projects relating to [concrete masonry products](/usc/15/8702.md?p=4), and to pay the costs of such programs and projects with assessments collected under [section 8705 of this title](/usc/15/8705.md);
  - (10) subject to [subsection (e)](#e), to enter into contracts or [agreements](/usc/15/7a.md?p=2) to develop and carry out programs or projects of [research](/usc/15/8702.md?p=17), [education](/usc/15/8702.md?p=9), and [promotion](/usc/15/8702.md?p=16) relating to [concrete masonry products](/usc/15/8702.md?p=4);
  - (11) to keep minutes, books, and records that reflect the actions and transactions of the [Board](/usc/15/8702.md?p=2), and promptly report minutes of each [Board](/usc/15/8702.md?p=2) meeting to the [Secretary](/usc/15/8702.md?p=18);
  - (12) to receive, investigate, and report to the [Secretary](/usc/15/8702.md?p=18) complaints of violations of the [order](/usc/15/8702.md?p=14);
  - (13) to furnish the [Secretary](/usc/15/8702.md?p=18) with such information as the [Secretary](/usc/15/8702.md?p=18) may request;
  - (14) to recommend to the [Secretary](/usc/15/8702.md?p=18) such amendments to the [order](/usc/15/8702.md?p=14) as the [Board](/usc/15/8702.md?p=2) considers appropriate; and
  - (15) to provide the [Secretary](/usc/15/8702.md?p=18) with advance notice of meetings to permit the [Secretary](/usc/15/8702.md?p=18), or the representative of the [Secretary](/usc/15/8702.md?p=18), to attend the meetings.
- (d) **Programs and projects; budgets; expenses—**
  - (1) **Programs and projects—**
    - (A) **In general—** The [order](/usc/15/8702.md?p=14) shall require the [Board](/usc/15/8702.md?p=2) to submit to the [Secretary](/usc/15/8702.md?p=18) for approval any program or project of [research](/usc/15/8702.md?p=17), [education](/usc/15/8702.md?p=9), or [promotion](/usc/15/8702.md?p=16) relating to [concrete masonry products](/usc/15/8702.md?p=4).
    - (B) **Statement required—** Any educational or promotional activity undertaken with funds provided by the [Board](/usc/15/8702.md?p=2) shall include a statement that such activities were supported in whole or in part by the [Board](/usc/15/8702.md?p=2).
  - (2) **Budgets—**
    - (A) **Submission—** The [order](/usc/15/8702.md?p=14) shall require the [Board](/usc/15/8702.md?p=2) to submit to the [Secretary](/usc/15/8702.md?p=18) for approval a budget of the anticipated expenses and disbursements of the [Board](/usc/15/8702.md?p=2) in the implementation of the [order](/usc/15/8702.md?p=14), including the projected costs of [concrete masonry products](/usc/15/8702.md?p=4) [research](/usc/15/8702.md?p=17), [education](/usc/15/8702.md?p=9), and [promotion](/usc/15/8702.md?p=16) 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](/usc/15/8702.md?p=18) fails to approve or reject a budget within 60 days of receipt, such budget shall be deemed approved, unless the [Secretary](/usc/15/8702.md?p=18) provides to the [Board](/usc/15/8702.md?p=2) 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](/usc/15/8702.md?p=2) may incur the expenses described in [paragraph (2)](#d-2) and other expenses for the [administration](/usc/15/636e.md?p=1), maintenance, and functioning of the [Board](/usc/15/8702.md?p=2) as authorized by the [Secretary](/usc/15/8702.md?p=18).
    - (B) **Payment of expenses—** Expenses incurred under [subparagraph (A)](#d-3-A) shall be paid by the [Board](/usc/15/8702.md?p=2) using assessments collected under [section 8705 of this title](/usc/15/8705.md), earnings obtained from assessments, and other income of the [Board](/usc/15/8702.md?p=2). Any funds borrowed by the [Board](/usc/15/8702.md?p=2) 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](/usc/15/8702.md?p=2), the [Board](/usc/15/8702.md?p=2) may not expend for [administration](/usc/15/636e.md?p=1) (except for reimbursement to the [Secretary](/usc/15/8702.md?p=18) required under [subparagraph (D)](#d-3-D)), maintenance, and functioning of the [Board](/usc/15/8702.md?p=2) in a fiscal year an amount that exceeds 10 percent of the assessment and other income received by the [Board](/usc/15/8702.md?p=2) for the fiscal year.
    - (D) **Reimbursement of Secretary—** The [order](/usc/15/8702.md?p=14) shall require that the [Secretary](/usc/15/8702.md?p=18) be reimbursed by the [Board](/usc/15/8702.md?p=2) from assessments for all expenses incurred by the [Secretary](/usc/15/8702.md?p=18) in the implementation, [administration](/usc/15/636e.md?p=1), and supervision of the [order](/usc/15/8702.md?p=14), including all referenda costs incurred in connection with the [order](/usc/15/8702.md?p=14).
- (e) **Contracts and agreements—**
  - (1) **In general—** The [order](/usc/15/8702.md?p=14) shall provide that, with the approval of the [Secretary](/usc/15/8702.md?p=18), the [Board](/usc/15/8702.md?p=2) may—
    - (A) enter into contracts and [agreements](/usc/15/7a.md?p=2) to carry out generic [research](/usc/15/8702.md?p=17), [education](/usc/15/8702.md?p=9), and [promotion](/usc/15/8702.md?p=16) programs and projects relating to [concrete masonry products](/usc/15/8702.md?p=4), including contracts and [agreements](/usc/15/7a.md?p=2) with [manufacturer](/usc/15/8702.md?p=12) associations or other entities as considered appropriate by the [Secretary](/usc/15/8702.md?p=18);
    - (B) enter into contracts and [agreements](/usc/15/7a.md?p=2) for administrative services; and
    - (C) pay the cost of approved generic [research](/usc/15/8702.md?p=17), [education](/usc/15/8702.md?p=9), and [promotion](/usc/15/8702.md?p=16) programs and projects using assessments collected under [section 8705 of this title](/usc/15/8705.md), earnings obtained from assessments, and other income of the [Board](/usc/15/8702.md?p=2).
  - (2) **Requirements—** Each contract or [agreement](/usc/15/7a.md?p=2) shall provide that any [person](/usc/15/8702.md?p=15) who enters into the contract or [agreement](/usc/15/7a.md?p=2) with the [Board](/usc/15/8702.md?p=2) shall—
    - (A) develop and submit to the [Board](/usc/15/8702.md?p=2) 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](/usc/15/7a.md?p=2);
    - (C) account for funds received and expended in connection with the contract or [agreement](/usc/15/7a.md?p=2);
    - (D) make periodic reports to the [Board](/usc/15/8702.md?p=2) of activities conducted under the contract or [agreement](/usc/15/7a.md?p=2); and
    - (E) make such other reports as the [Board](/usc/15/8702.md?p=2) or the [Secretary](/usc/15/8702.md?p=18) considers relevant.
  - (3) **Failure to approve—** If the [Secretary](/usc/15/8702.md?p=18) fails to approve or reject a contract or [agreement](/usc/15/7a.md?p=2) entered into under [paragraph (1)](#e-1) within 60 days of receipt, the contract or [agreement](/usc/15/7a.md?p=2) shall be deemed approved, unless the [Secretary](/usc/15/8702.md?p=18) provides to the [Board](/usc/15/8702.md?p=2) 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](/usc/15/8702.md?p=14) shall require the [Board](/usc/15/8702.md?p=2) to—
    - (A) maintain such books and records (which shall be available to the [Secretary](/usc/15/8702.md?p=18) for inspection and audit) as the [Secretary](/usc/15/8702.md?p=18) may require;
    - (B) collect and submit to the [Secretary](/usc/15/8702.md?p=18), at any time the [Secretary](/usc/15/8702.md?p=18) may specify, any information the [Secretary](/usc/15/8702.md?p=18) may request; and
    - (C) account for the receipt and disbursement of all funds in the possession, or under the control, of the [Board](/usc/15/8702.md?p=2).
  - (2) **Audits—** The [order](/usc/15/8702.md?p=14) shall require the [Board](/usc/15/8702.md?p=2) to have—
    - (A) the books and records of the [Board](/usc/15/8702.md?p=2) audited by an independent auditor at the end of each fiscal year; and
    - (B) a report of the audit submitted directly to the [Secretary](/usc/15/8702.md?p=18).
- (g) **Prohibited activities—**
  - (1) **In general—** Subject to [paragraph (2)](#g-2), the [Board](/usc/15/8702.md?p=2) shall not engage in any program or project to, nor shall any funds received by the [Board](/usc/15/8702.md?p=2) under this chapter be used to—
    - (A) influence legislation, elections, or governmental action;
    - (B) engage in an action that would be a [conflict of interest](/usc/15/8702.md?p=6);
    - (C) engage in advertising that is false or misleading;
    - (D) engage in any [promotion](/usc/15/8702.md?p=16), [research](/usc/15/8702.md?p=17), or [education](/usc/15/8702.md?p=9) that would be disparaging to other construction materials; or
    - (E) engage in any [promotion](/usc/15/8702.md?p=16) or project that would benefit any individual [manufacturer](/usc/15/8702.md?p=12).
  - (2) **Exceptions—** [Paragraph (1)](#g-1) does not preclude—
    - (A) the development and recommendation of amendments to the [order](/usc/15/8702.md?p=14);
    - (B) the communication to appropriate government officials of information relating to the conduct, implementation, or results of [research](/usc/15/8702.md?p=17), [education](/usc/15/8702.md?p=9), and [promotion](/usc/15/8702.md?p=16) activities under the [order](/usc/15/8702.md?p=14) except communications described in [paragraph (1)(A)](#g-1-A); or
    - (C) any lawful action designed to market [concrete masonry products](/usc/15/8702.md?p=4) directly to a foreign government or political subdivision of a foreign government.
- (h) **Periodic evaluation—** The [order](/usc/15/8702.md?p=14) shall require the [Board](/usc/15/8702.md?p=2) to provide for the independent evaluation of all [research](/usc/15/8702.md?p=17), [education](/usc/15/8702.md?p=9), and [promotion](/usc/15/8702.md?p=16) programs or projects undertaken under the [order](/usc/15/8702.md?p=14), beginning 5 years after October 5, 2018, and every 3 years thereafter. The [Board](/usc/15/8702.md?p=2) shall submit to the [Secretary](/usc/15/8702.md?p=18) and make available to the public the results of each such evaluation.
- (i) **Objectives—** The [Board](/usc/15/8702.md?p=2) shall establish annual [research](/usc/15/8702.md?p=17), [education](/usc/15/8702.md?p=9), and [promotion](/usc/15/8702.md?p=16) objectives and performance metrics for each fiscal year subject to approval by the [Secretary](/usc/15/8702.md?p=18).
- (j) **Biennial report—** Every 2 years the [Board](/usc/15/8702.md?p=2) 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](/usc/15/8702.md?p=2) during the previous 2 years as well as those planned for the subsequent 2 years and detail the allocation or planned allocation of [Board](/usc/15/8702.md?p=2) resources for each such program or project. Such report shall also include—
  - (1) the overall financial condition of the [Board](/usc/15/8702.md?p=2);
  - (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 objectives of the [Board](/usc/15/8702.md?p=2) were met according to the metrics required under [subsection (i)](#i).
- (k) **Books and records of persons covered by order—**
  - (1) **In general—** The [order](/usc/15/8702.md?p=14) shall require that [manufacturers](/usc/15/8702.md?p=12) shall—
    - (A) maintain records sufficient to ensure compliance with the [order](/usc/15/8702.md?p=14) and regulations; and
    - (B) make the records described in [subparagraph (A)](#k-1-A) available, during normal business hours, for inspection by employees or agents of the [Board](/usc/15/8702.md?p=2) or the [Department](/usc/15/8702.md?p=7).
  - (2) **Time requirement—** Any record required to be maintained under [paragraph (1)](#k-1) shall be maintained for such time period as the [Secretary](/usc/15/8702.md?p=18) 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](/usc/15/8702.md?p=2) or the [Secretary](/usc/15/8702.md?p=18) (or any representative of the [Board](/usc/15/8702.md?p=2) or the [Secretary](/usc/15/8702.md?p=18)) under this chapter shall not be disclosed by any officers, employees, and agents of the [Department](/usc/15/8702.md?p=7) or the [Board](/usc/15/8702.md?p=2).
    - (B) **Suits and hearings—** Information referred to in [subparagraph (A)](#k-3-A) may be disclosed only if—
      - (i) the [Secretary](/usc/15/8702.md?p=18) 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](/usc/15/8702.md?p=18) or to which the [Secretary](/usc/15/8702.md?p=18) or any officer of the [Department](/usc/15/8702.md?p=7) 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](/usc/15/8702.md?p=15) subject to an [order](/usc/15/8702.md?p=14) if the statements do not identify the information furnished by any [person](/usc/15/8702.md?p=15); or
      - (ii) the publication, by direction of the [Secretary](/usc/15/8702.md?p=18), of the name of any [person](/usc/15/8702.md?p=15) violating any [order](/usc/15/8702.md?p=14) and a statement of the particular provisions of the [order](/usc/15/8702.md?p=14) violated by the [person](/usc/15/8702.md?p=15).
    - (D) **Penalty—** Any officer, employee, or agent of the [Department](/usc/15/8702.md?p=7) of Commerce or any officer, employee, or agent of the [Board](/usc/15/8702.md?p=2) 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.

## Source credit

(Pub. L. 115–254, div. E, § 1305, Oct. 5, 2018, 132 Stat. 3472.)