Frequently Asked Questions

Program/checkoff

What is a checkoff?
A checkoff is an industry-supported program of research, promotion and education designed to have industry-wide participation and funding to advance the industry and to create preference for a product. The purpose of the concrete masonry checkoff is to:
  1. Strengthen the position of the concrete masonry industry and products domestically.
  2. Maintain, develop and expand markets and uses for concrete masonry domestically.
  3. Promote the use of concrete masonry in construction and building.
Why do we need a checkoff?
Our industry needs to regain and grow market share. The checkoff program will create the funding and ability for us to promote our industry and position our products against the competition. With the assessment being equally applied to every company and every unit sold, the program is fair and inclusive. Many in the industry agree that an ongoing bold change in industry promotion is needed to ensure a growing role of concrete masonry as the building material for future communities.
What kind of programs could the checkoff fund?
The checkoff can fund programs that fall within the broad categories of research, education, and promotion. Program funds will be used to build awareness and demand for concrete masonry. That can include research and documentation of masonry system performance and overall industry promotion and education. This also includes ensuring that engineers, architects and other designers and specifiers understand why and how best to integrate concrete masonry into the most effective structures. And while the checkoff can be used to educate regulators, legislators and inspectors on concrete masonry, funds cannot be used to lobby or advocate for legislation or regulations.
Who decides what programs will be funded?
The Board of the checkoff will allocate the funding to projects that address a regional or an industry-wide challenge or opportunity. The projects can be proposed by associations or entities at the local, state, regional or national level.
How will the states and regions have a say in the programs?
The legislation calls for five Regional Advisory Committees–made up of groups of states. At least 50% of the program funds will be spent at the regional level and no more than 50% of program funds spent at the national level. These Regional Advisory Committees (RACs) will each have a representative on the board and they will recommend programs and initiatives for funding that will have the greatest impact for their region. The Board will also consider programs that have industry wide impact and/or programs recommended by RACs. The Board has the fiduciary responsibility of reviewing and approving the programs.
Is the checkoff designed to benefit small producers or large producers?
All producers will benefit from the concrete masonry checkoff. Programs that are funded will be held to a fundamental criteria: does this work increase awareness and/or demand for concrete masonry.
Are there any other checkoffs in the construction and building industry?
Yes, the Softwood Lumber Board was started in 2011 and they spend approximately $14 million a year promoting wood as a superior building material.

ASSESSMENT

Who pays?
All manufacturers that produce and sell concrete masonry units will pay the same assessment at the same rate. Concrete masonry units are defined as any man-made masonry unit having an actual width of three inches or greater manufactured from dry-cast concrete using a block machine.
How much is the assessment and how will it be collected?
A penny per concrete masonry unit manufactured and sold within the United Sates will be assessed once and only once. The assessment occurs at the initial point of sale from the manufacturer, regardless of where or with whom that transaction occurs. These assessments will be at the time of invoicing. The funds will be transferred on a quarterly basis to the checkoff and used to support initiatives intended to advance the industry.
What is the difference between a tax and a checkoff assessment?
A checkoff assessment is developed and adopted by the industry and is a self-assessment of the entities in that specified industry to fund programs that they choose to support their products in a competitive environment. The government does not collect nor hold at any time the checkoff funds. Collections and management of funds is the responsibility of the checkoff board, composed of industry representatives.

REFERENDUM

What is the process for the industry to adopt the checkoff?
Based on industry recommendations, the Department of Commerce will develop an Order that provides guidelines for running a compliant program and the process for a referendum. The industry will have an opportunity to provide public comment to the order prior to the referendum.
When would the referendum be held?
Timelines are not firm yet, but the earliest possible referendum could be sometime in 2020.
What is required to pass the referendum?
The Order establishing the checkoff becomes effective if 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. Eligible voters are those that represent companies that have manufactured concrete masonry units within the 180 days prior to the start of referendum voting.