§ 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.