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§ 1701j-2. —  National Institute of Building Sciences.



[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
  January 24, 2002 and December 19, 2002]
[CITE: 12USC1701j-2]

 
                       TITLE 12--BANKS AND BANKING
 
                      CHAPTER 13--NATIONAL HOUSING
 
Sec. 1701j-2. National Institute of Building Sciences


(a) Congressional findings and declaration of purpose

    (1) The Congress finds (A) that the lack of an authoritative 
national source to make findings and to advise both the public and 
private sectors of the economy with respect to the use of building 
science and technology in achieving nationally acceptable standards and 
other technical provision for use in Federal, State, and local housing 
and building regulations is an obstacle to efforts by and imposes severe 
burdens upon all those who procure, design, construct, use, operate, 
maintain, and retire physical facilities, and frequently results in the 
failure to take full advantage of new and useful developments in 
technology which could improve our living environment; (B) that the 
establishment of model buildings codes or of a single national building 
code will not completely resolve the problem because of the difficulty 
at all levels of government in updating their housing and building 
regulations to reflect new developments in technology, as well as the 
irregularities and inconsistencies which arise in applying such 
requirements to particular localities or special local conditions; (C) 
that the lack of uniform housing and building regulatory provisions 
increases the costs of construction and thereby reduces the amount of 
housing and other community facilities which can be provided; and (D) 
that the existence of a single authoritative nationally recognized 
institution to provide for the evaluation of new technology could 
facilitate introduction of such innovations and their acceptance at the 
Federal, State, and local levels.
    (2) The Congress further finds, however, that while an authoritative 
source of technical findings is needed, various private organizations 
and institutions, private industry, labor, and Federal and other 
governmental agencies and entities are presently engaged in building 
research, technology development, testing, and evaluation, standards and 
model code development and promulgation, and information dissemination. 
These existing activities should be encouraged and these capabilities 
effectively utilized wherever possible and appropriate to the purposes 
of this section.
    (3) The Congress declares that an authoritative nongovernmental 
instrument needs to be created to address the problems and issues 
described in paragraph (1), that the creation of such an instrument 
should be initiated by the Government, with the advice and assistance of 
the National Academy of Sciences-National Academy of Engineering-
National Research Council (hereinafter referred to as the ``Academies-
Research Council'') and of the various sectors of the building 
community, including labor and management, technical experts in building 
science and technology, and the various levels of government.

(b) Establishment; advice and assistance of Academies-Research Council 
        and other agencies and organizations knowledgeable in building 
        technology

    (1) There is authorized to be established, for the purposes 
described in subsection (a)(3) of this section, an appropriate 
nonprofit, nongovernmental instrument to be known as the National 
Institute of Building Sciences (hereinafter referred to as the 
``Institute''), which shall not be an agency or establishment of the 
United States Government. The Institute shall be subject to the 
provisions of this section and, to the extent consistent with this 
section, to a charter of the Congress if such a charter is requested and 
issued or to the District of Columbia Nonprofit Corporation Act if that 
is deemed preferable.
    (2) The Academies-Research Council, along with other agencies and 
organizations which are knowledgeable in the field of building 
technology, shall advise and assist in (A) the establishment of the 
Institute; (B) the development of an organizational framework to 
encourage and provide for the maximum feasible participation of public 
and private scientific, technical, and financial organizations, 
institutions, and agencies now engaged in activities pertinent to the 
development, promulgation, and maintenance of performance criteria, 
standards, and other technical provisions for building codes and other 
regulations; and (C) the promulgation of appropriate organizational 
rules and procedures including those for the selection and operation of 
a technical staff, such rules and procedures to be based upon the 
primary object of promoting the public interest and insuring that the 
widest possible variety of interests and experience essential to the 
functions of the Institute are represented in the Institute's 
operations. Recommendations of the Academies-Research Council shall be 
based upon consultations with and recommendations from various private 
organizations and institutions, labor, private industry, and 
governmental agencies entities operating in the field, and the 
Consultative Council as provided for under subsection (c)(8) of this 
section.
    (3) Nothing in this section shall be construed as expressing the 
intent of the Congress that the Academies-Research Council itself be 
required to assume any function or operation vested in the Institute by 
or under this section.

(c) Board of Directors; number; appointment; membership; terms of 
        office; vacancies; appointment, etc., of Chairman and Vice 
        Chairman; employees of United States; travel and subsistence 
        expenses; appointment and compensation of president and other 
        executive officers and employees; establishment, membership, and 
        functions of Consultative Council

    (1) The Institute shall have a Board of Directors (hereinafter 
referred to as the ``Board'') consisting of not less than fifteen nor 
more than twenty-one members, appointed by the President of the United 
States by and with the advice and consent of the Senate. The Board shall 
be representative of the various segments of the building community, of 
the various regions of the country, and of the consumers who are or 
would be affected by actions taken in the exercise of the functions and 
responsibilities of the Institute, and shall include (A) representatives 
of the construction industry, including representatives of construction 
labor organizations, product manufacturers, and builders, housing 
management experts, and experts in building standards, codes, and fire 
safety, and (B) members representative of the public interest in such 
numbers as may be necessary to assure that a majority of the members of 
the Board represent the public interest and that there is adequate 
consideration by the Institute of consumer interests in the exercise of 
its functions and responsibilities. Those representing the public 
interest on the Board shall include architects, professional engineers, 
officials of Federal, State, and local agencies, and representatives of 
consumer organizations. Such members of the Board shall hold no 
financial interest or membership in, nor be employed by, or receive 
other compensation from, any company, association, or other group 
associated with the manufacture, distribution, installation, or 
maintenance of specialized building products, equipment, systems, 
subsystems, or other construction materials and techniques for which 
there are available substitutes.
    (2) The members of the initial Board shall serve as incorporators 
and shall take whatever actions are necessary to establish the Institute 
as provided for under subsection (b)(1) of this section.
    (3) The term of office of each member of the initial and succeeding 
Boards shall be three years; except that (A) any member appointed to 
fill a vacancy occurring prior to the expiration of the term for which 
his predecessor was appointed shall be appointed for the remainder of 
such term; and (B) the terms of office of members first taking office 
shall begin on the date of incorporation and shall expire, as designated 
at the time of their appointment, one-third at the end of one year, one-
third at the end of two years, and one-third at the end of three years. 
No member shall be eligible to serve in excess of three consecutive 
terms of three years each. Notwithstanding the preceding provisions of 
this subsection, a member whose term has expired may serve until his 
successor has qualified.
    (4) Any vacancy in the initial and succeeding Boards shall not 
affect its power, but shall be filled in the manner in which the 
original appointments were made, or, after the first five years of 
operation, as provided for by the organizational rules and procedures of 
the Institute; except that, notwithstanding any such rules and 
procedures as may be adopted by the Institute, the President of the 
United States, by and with the advice and consent of the Senate, shall 
appoint, as representative of the public interest, two of the members of 
the Board of Directors selected each year for terms commencing in that 
year.
    (5) The President shall designate one of the members appointed to 
the initial Board as Chairman; thereafter, the members of the initial 
and succeeding Boards shall annually elect one of their number as 
Chairman. The members of the Board shall also elect one or more of their 
Members as Vice Chairman. Terms of the Chairman and Vice Chairman shall 
be for one year and no individual shall serve as Chairman or Vice 
Chairman for more than two consecutive terms.
    (6) The members of the initial or succeeding Boards shall not, by 
reason of such membership, be deemed to be employees of the United 
States Government. They shall, while attending meetings of the Board or 
while engaged in duties related to such meetings or in other activities 
of the Board pursuant to this section, be entitled to receive 
compensation at the rate of $100 per day including traveltime, and while 
away from their homes or regular places of business they may be allowed 
travel expenses, including per diem in lieu of subsistence, equal to 
that authorized under section 5703 of title 5, for persons in the 
Government service employed intermittently.
    (7) The Institute shall have a president and such other executive 
officers and employees as may be appointed by the Board at rates of 
compensation fixed by the Board. No such executive officer or employee 
may receive any salary or other compensation from any source other than 
the Institute during the period of his employment by the Institute.
    (8) The Institute shall establish, with the advice and assistance of 
the Academies-Research Council and other agencies and organizations 
which are knowledgeable in the field of building technology, a 
Consultative Council, membership in which shall be available to 
representatives of all appropriate private trade, professional, and 
labor organizations, private and public standards, code, and testing 
bodies, public regulatory agencies, and consumer groups, so as to insure 
a direct line of communication between such groups and the Institute and 
a vehicle for representative hearings on matters before the Institute.

(d) Financial restrictions and prohibitions

    (1) The Institute shall have no power to issue any shares of stock, 
or to declare or pay any dividends.
    (2) No part of the income or assets of the Institute shall inure to 
the benefit of any director, officer, employee, or other individual 
except as salary or reasonable compensation for services.
    (3) The Institute shall not contribute to or otherwise support any 
political party or candidate for elective public office.

(e) Exercise of functions and responsibilities

    (1) The Institute shall exercise its functions and responsibilities 
in four general areas, relating to building regulations, as follows:
        (A) Development, promulgation, and maintenance of nationally 
    recognized performance criteria, standards, and other technical 
    provisions for maintenance of life, safety, health, and public 
    welfare suitable for adoption by building regulating jurisdictions 
    and agencies, including test methods and other evaluative techniques 
    relating to building systems, subsystems, components, products, and 
    materials with due regard for consumer problems.
        (B) Evaluation and prequalification of existing and new building 
    technology in accordance with subparagraph (A).
        (C) Conduct of needed investigations in direct support of 
    subparagraphs (A) and (B).
        (D) Assembly, storage, and dissemination of technical data and 
    other information directly related to subparagraphs (A), (B), and 
    (C).

    (2) The Institute in exercising its functions and responsibilities 
described in paragraph (1) shall assign and delegate, to the maximum 
extent possible, responsibility for conducting each of the needed 
activities described in paragraph (1) to one or more of the private 
organizations, institutions, agencies, and Federal and other 
governmental entities with a capacity to exercise or contribute to the 
exercise of such responsibility, monitor the performance achieved 
through assignment and delegation, and, when deemed necessary, reassign 
and delegate such responsibility.
    (3) The Institute in exercising its functions and responsibilities 
under paragraphs (1) and (2) shall (A) give particular attention to the 
development of methods for encouraging all sectors of the economy to 
cooperate with the Institute and to accept and use its technical 
findings, and to accept and use the nationally recognized performance 
criteria, standards, and other technical provisions developed for use in 
Federal, State, and local building codes and other regulations which 
result from the program of the Institute; (B) seek to assure that its 
actions are coordinated with related requirements which are imposed in 
connection with community and environmental development generally; and 
(C) consult with the Department of Justice and other agencies of 
government to the extent necessary to insure that the national interest 
is protected and promoted in the exercise of its functions and 
responsibilities.

(f) Contract and grant authorization; donations; fees; amounts received 
        in addition to amounts appropriated

    (1) The Institute is authorized to accept contracts and grants from 
Federal, State, and local governmental agencies and other entities, and 
grants and donations from private organizations, institutions, and 
individuals.
    (2) The Institute may, in accordance with rates and schedules 
established with guidance as provided under subsection (b)(2) of this 
section, establish fees and other charges for services provided by the 
Institute or under its authorization.
    (3) Amounts received by the Institute under this section shall be in 
addition to any amounts which may be appropriated to provide its initial 
operating capital under subsection (h) of this section.

(g) Technical findings and performance criteria and standards; 
        applicability and use by Federal departments, agencies, and 
        establishments, and State and local governments; supporting 
        grants and contracts

    (1) Every department, agency, and establishment of the Federal 
Government, in carrying out any building or construction, or any 
building- or construction-related programs, which involves direct 
expenditures, and in developing technical requirements for any such 
building or construction, shall be encouraged to accept the technical 
findings of the Institute, or any nationally recognized performance 
criteria, standards, and other technical provisions for building 
regulations brought about by the Institute, which may be applicable.
    (2) All projects and programs involving Federal assistance in the 
form of loans, grants, guarantees, insurance, or technical aid, or in 
any other form, shall be encouraged to accept, use, and comply with any 
of the technical findings of the Institute, or any nationally recognized 
performance criteria, standards, and other technical provisions for 
building codes and other regulations brought about by the Institute, 
which may be applicable to the purposes for which the assistance is to 
be used.
    (3) Every department, agency, and establishment of the Federal 
Government having responsibility for building or construction, or for 
building- or construction-related programs, is authorized and encouraged 
to request authorization and appropriations for grants to the Institute 
for its general support, and is authorized to contract with and accept 
contracts from the Institute for specific services where deemed 
appropriate by the responsible Federal official involved.
    (4) The Institute shall establish and carry on a specific and 
continuing program of cooperation with the States and their political 
subdivisions designed to encourage their acceptance of its technical 
findings and of nationally recognized performance criteria, standards, 
and other technical provisions for building regulations brought about by 
the Institute. Such program shall include (A) efforts to encourage any 
changes in existing State and local law to utilize or embody such 
findings and regulatory provisions; and (B) assistance to States in the 
development of inservice training programs for building officials, and 
in the establishment of fully staffed and qualified State technical 
agencies to advise local officials on questions of technical 
interpretation.

(h) Advanced Building Technology Program

      (1) Establishment of Advanced Building Technology Council

        There is established within the Institute, the Advanced Building 
    Technology Council (hereafter referred to as the ``Council'').

                            (2) Purposes

        The Council shall carry out an Advanced Building Technology 
    Program for the purposes of--
            (A) identifying, selecting, and evaluating existing and new 
        building technologies, including energy cost savings 
        technologies, that conform to recognized performance criteria 
        and meet applicable test standards for maintenance of life, 
        safety, health, and public welfare when used in occupied 
        buildings;
            (B) to the extent necessary, developing criteria for the use 
        of such technology;
            (C) conducting economic analyses of proposed new 
        technologies when produced and installed in buildings at volumes 
        associated with comparable conventional technologies;
            (D) in cooperation with the appropriate Federal agencies, 
        advising building designers, installers, subcontractors, 
        contractors and supervisory officials on the appropriate design 
        and use of new building technology incorporated in federally 
        owned or operated buildings;
            (E) in cooperation with the appropriate Federal agencies, 
        monitoring and evaluating the performance of new building 
        technologies for at least 1 year after installation and building 
        occupancy; and
            (F) disseminating resulting data to affected parties through 
        automated information management systems.

                       (3) Council membership

        The Council shall be comprised of not less than 6 and not more 
    than 11 members selected by the Secretary of Housing and Urban 
    Development from among representatives of the various segments of 
    the nationwide building community that have extensive experience in 
    building industries, including, but not limited to--
            (A) product manufacturers;
            (B) experts in the fields of health, fire hazards, and 
        safety; and
            (C) independent representatives of the public interest such 
        as architects, professional engineers, and representatives of 
        consumer organizations,

    except that serving members of the National Institute of Building 
    Sciences Advisory Council shall not be eligible to serve 
    simultaneously on the Council.

                      (4) Federal participation

        (A) In general

            Any agency of the Federal Government involved in any 
        building or construction may participate in the Advanced 
        Building Technology Program with the Council to develop and 
        implement programs to incorporate one or more of the recommended 
        new technologies in a new or existing building within the 
        agency.

        (B) Required assurances

            Upon agreement between a participating Federal agency and 
        the Council, with respect to the selection of the appropriate 
        technology and the schedule of necessary work, the Council 
        shall--
                (i) provide the Federal agency with a 5-year guarantee 
            from the technology manufacturer that--
                    (I) all necessary corrections to the technology will 
                be made in the design, installation, and maintenance of 
                the technology;
                    (II) all malfunctions will be repaired without 
                delay; and
                    (III) the technology manufacturer will be 
                responsible for removal of the technology in the event 
                of its failure to perform as required;

                (ii) provide the Federal agency and its officials 
            responsible for constructing or renovating buildings 
            utilizing the new technology, as well as the designers, 
            installers, subcontractors, and contractors responsible for 
            the design, construction, or renovation of the buildings 
            utilizing such technology with the technical information 
            necessary to ensure its most appropriate use,
                (iii) in cooperation with the Federal agency, monitor 
            and evaluate the performance of the new technology, and
                (iv) prepare reports to be made available to public 
            agencies at all levels of government, the industry, and the 
            public on the performance of the new technology.

                     (5) Report to the Institute

        The Council shall submit to the Institute annually a description 
    of its activities under the Advanced Building Technology Program for 
    inclusion in the Institute's annual report to the Congress under 
    subsection (j) of this section.

(i) Authorization of appropriations

    There is authorized to be appropriated to the Institute not to 
exceed $5,000,000 for the fiscal year 1975, and $5,000,000 for the 
fiscal year 1976, and $5,000,000 for each of the fiscal years 1977 and 
1978, and any amounts not appropriated in fiscal years 1977 and 1978 may 
be appropriated in any fiscal year through 1984 (with not more than 
$500,000 to be appropriated for each of the fiscal years 1982, 1983, and 
1984 and with each appropriation to be available until expended), to 
provide the Institute with initial capital adequate for the exercise of 
its functions and responsibilities during such years; and thereafter the 
Institute shall be financially self-sustaining through the means 
described in subsection (f) of this section. In addition to the amounts 
authorized to be appropriated under the first sentence of this section, 
there are authorized to be appropriated to the Institute to carry out 
the provisions of this section not to exceed $512,000 for fiscal year 
1991 and $534,000 for fiscal year 1992. Any amount appropriated under 
the preceding sentence shall be made available for expenditure or 
obligation by the Institute only to the extent of an equal amount 
received by the Institute after November 30, 1983, from persons or 
entities other than the Federal Government.

(j) Annual report to President for transmittal to Congress; contents

    The Institute shall submit an annual report for the preceding fiscal 
year to the President for transmittal to the Congress within sixty days 
of its receipt. The report shall include a comprehensive and detailed 
report of the Institute's operations, activities, financial condition, 
and accomplishments under this section and may include such 
recommendations as the Institute deems appropriate.

(Pub. L. 93-383, title VIII, Sec. 809, Aug. 22, 1974, 88 Stat. 729; Pub. 
L. 94-375, Sec. 24, Aug. 3, 1976, 90 Stat. 1078; Pub. L. 95-557, title 
III, Sec. 319, Oct. 31, 1978, 92 Stat. 2101; Pub. L. 97-35, title III, 
Sec. 339E, Aug. 13, 1981, 95 Stat. 417; Pub. L. 98-181, title IV, 
Sec. 462, Nov. 30, 1983, 97 Stat. 1232; Pub. L. 100-242, title V, 
Sec. 570(f), Feb. 5, 1988, 101 Stat. 1950; Pub. L. 101-625, title IX, 
Sec. 952(a), Nov. 28, 1990, 104 Stat. 4418; Pub. L. 102-550, title IX, 
Sec. 904(a), Oct. 28, 1992, 106 Stat. 3868.)

                       References in Text

    The District of Columbia Nonprofit Corporation Act, referred to in 
subsec. (b)(1), is Pub. L. 87-569, Aug. 6, 1962, 76 Stat. 265, as 
amended, which is not classified to the Code.

                          Codification

    Section was enacted as part of the Housing and Community Development 
Act of 1974, and not as part of the National Housing Act which comprises 
this chapter.


                               Amendments

    1992--Subsecs. (h) to (j). Pub. L. 102-550 added subsec. (h) and 
redesignated former subsecs. (h) and (i) as (i) and (j), respectively.
    1990--Subsec. (h). Pub. L. 101-625 amended second sentence 
generally. Prior to amendment, second sentence read as follows: ``In 
addition to the amounts authorized to be appropriated under the first 
sentence of this section, there is authorized to be appropriated to the 
Institute to carry out the provisions of this section not to exceed 
$250,000 for fiscal year 1984.''
    1988--Subsec. (g)(4). Pub. L. 100-242, Sec. 570(f)(1), substituted 
``of its'' for ``and its''.
    Subsec. (h). Pub. L. 100-242, Sec. 570(f)(2), substituted 
``preceding'' for ``preceeding''.
    1983--Subsec. (h). Pub. L. 98-181 inserted provisions relating to 
the appropriation of not to exceed $250,000 for fiscal 1984, such amount 
to be made available for expenditure only to the extent of an equal 
amount received from persons or entities other than the Federal 
Government.
    1981--Subsec. (c)(4). Pub. L. 97-35, Sec. 339E(b), inserted 
provisions respecting Presidential appointment powers to the Board.
    Subsec. (h). Pub. L. 97-35, Sec. 339E(a), inserted provisions which 
extended authorization from 1982 to 1984, and enumerated amount for 
fiscal years 1982, 1983, and 1984.
    1978--Subsec. (h). Pub. L. 95-557 inserted ``, and any amounts not 
appropriated in fiscal years 1977 and 1978 may be appropriated in any 
fiscal year through 1982'' after ``1978''.
    1976--Subsec. (h). Pub. L. 94-375 inserted ``, and $5,000,000 for 
each of the fiscal years 1977 and 1978'' after ``fiscal year 1976''.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 371 
of Pub. L. 97-35, set out as an Effective Date note under section 3701 
of this title.


  National Institute of Building Sciences Trust Fund; Authorization of 
                             Appropriations

    Pub. L. 98-396, title I, Aug. 22, 1984, 98 Stat. 1384, provided 
that: ``There is appropriated out of funds not otherwise appropriated, 
the sum of $5,000,000 to a `National Institute of Building Sciences 
Trust Fund' which is hereby established in the Treasury of the United 
States: Provided, That the Secretary shall invest such funds in U.S. 
Treasury special issue securities at a fixed rate of ten per centum per 
annum, that such interest shall be credited to the Trust Fund on a 
quarterly basis, and that the Secretary shall make quarterly 
disbursements from such interest to the National Institute of Building 
Sciences: Provided further, That the total amount of such payment during 
any fiscal year may not exceed $500,000 or the amount equivalent to non-
Federal funds received by the Institute during the preceding fiscal 
year, whichever is less: Provided further, That any amount of interest 
not used for any such annual payment shall be paid into the general fund 
of the Treasury: Provided further, That the appropriation of $5,000,000 
made in this paragraph shall revert to the Treasury, on October 1, 1989, 
and the National Institute of Building Sciences Trust Fund shall 
terminate following the final quarterly disbursement of interest 
provided for in this paragraph.''

                  Section Referred to in Other Sections

    This section is referred to in title 42 sections 6832, 8262g.



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