99-33044. Labor Organization Annual Financial Reports  

  • [Federal Register Volume 64, Number 244 (Tuesday, December 21, 1999)]
    [Rules and Regulations]
    [Pages 71622-71624]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-33044]
    
    
    
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    _______________________________________________________________________
    
    Part VI
    
    
    
    
    
    Department of Labor
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    Office of Labor-Management Standards
    
    
    
    _______________________________________________________________________
    
    
    
    29 CFR Part 403
    
    
    
    Labor Organization Annual Financial Reports; Final Rule
    
    Federal Register / Vol. 64, No. 244 / Tuesday, December 21, 1999 / 
    Rules and Regulations
    
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    DEPARTMENT OF LABOR
    
    Office of Labor-Management Standards
    
    29 CFR Part 403
    
    RIN 1215-AB29
    
    
    Labor Organization Annual Financial Reports
    
    AGENCY: Office of Labor-Management Standards, Employment Standards 
    Administration, Labor.
    
    ACTION: Final rule.
    
    -----------------------------------------------------------------------
    
    SUMMARY: This final rule makes several minor and technical revisions to 
    the annual financial reporting forms which labor organizations are 
    required to file under the Labor-Management Reporting and Disclosure 
    Act of 1959, as amended (LMRDA). It also makes several technical 
    amendments to the Department of Labor's regulations in which those 
    reporting forms are prescribed. These changes are being made in order 
    to enable the Department to optically scan the reports and make them 
    available on its Internet Web site, and to make the reports more 
    uniform.
    
    EFFECTIVE DATE: January 1, 2000.
    
    FOR FURTHER INFORMATION CONTACT: Kay H. Oshel, Chief, Division of 
    Interpretations and Standards, Office of Labor-Management Standards, 
    Employment Standards Administration, U.S. Department of Labor, Room N-
    5605, Washington, DC 20210, (202) 693-0123 (this is not a toll-free 
    number).
    
    SUPPLEMENTARY INFORMATION: Section 201(b) of the Labor-Management 
    Reporting and Disclosure Act of 1959, as amended (LMRDA), 29 U.S.C. 
    431(b), requires that each covered labor organization file an annual 
    report with the Secretary of Labor disclosing its financial condition 
    and operations. The requirements of LMRDA section 201(b) apply to all 
    labor organizations in the private sector. In addition, section 1209(b) 
    of the Postal Reorganization Act, 39 U.S.C. 1209(b), makes the LMRDA 
    applicable to labor organizations which represent employees of the U.S. 
    Postal Service. Finally, the Department's regulations, at 29 CFR 458.3, 
    which implement the provisions of the Civil Service Reform Act of 1978 
    and the Foreign Service Act of 1980 relating to standards of conduct 
    for federal sector labor organizations, 5 U.S.C. 7120 and 22 U.S.C. 
    1017, respectively, apply the LMRDA reporting requirements to labor 
    organizations which represent certain employees of the federal 
    government.
        Section 208 of the LMRDA authorizes the Secretary to issue, amend, 
    and rescind rules prescribing the form and publication of the 
    information and annual financial reports required by sections 201(a) 
    and 201(b), and to provide simplified reports for labor organizations 
    for whom the Secretary finds that by virtue of their size a detailed 
    report would be unduly burdensome. Part 403 of title 29 of the Code of 
    Federal Regulations contains the regulations implementing these 
    reporting requirements and prescribing the reporting forms. The 
    Secretary of Labor has delegated authority under the LMRDA to the 
    Assistant Secretary for Employment Standards. See Secretary's Order No. 
    5-96 (62 FR 107, January 2, 1997).
        The regulations, at 29 CFR 403.3 and 403.4(a), prescribe Form LM-2 
    for labor organizations with total annual receipts of $200,000 or more, 
    simplified Form LM-3 for labor organizations with total annual receipts 
    of less than $200,000, and simplified Form LM-4 for labor organizations 
    with total annual receipts of less than $10,000. The regulations at 29 
    CFR 403.4(b) also provide a simplified reporting format which a parent 
    national or international labor organization may submit on behalf of a 
    subordinate local labor organization which has no assets, liabilities, 
    receipts, or disbursements.
        The Department has redesigned Forms LM-2/3/4 so that they can be 
    optically scanned and made available on the Internet. The major changes 
    to the forms are in their appearance. The most important of these 
    changes are (1) the reporting forms are now landscape rather than 
    portrait orientation, (2) they have pre-printed green boxes for 
    entering information for most of the items, and (3) the spaces for 
    entering information are larger and, consequently, the forms have more 
    pages (twelve pages instead of six for Form LM-2, eight pages instead 
    of four for Form LM-3, and two pages instead of one for Form LM-4). In 
    addition, labor organizations will have to file only one copy of the 
    report rather than the two that are now required.
        The only change in the content of Forms LM-2/3/4 is that item 3 has 
    been expanded. Currently, labor organizations are asked in item 3 to 
    indicate whether the report is a terminal report. In the revised Forms 
    LM-2 and LM-3, labor organizations are also asked to indicate whether 
    the report is an amended report or a separate report for a subsidiary 
    organization; in the revised Form LM-4, labor organizations are also 
    asked to indicate whether the report is an amended report. This 
    information will facilitate the processing and scanning of the reports.
        The changes made in this final rule to Forms LM-2/3/4, prescribed 
    in the regulations at 29 CFR 403.3 and 403.4(a), do not require any 
    change in the text of the regulations.
        This final rule also makes several changes to the regulations at 29 
    CFR 403.4(b). That regulation provides that a parent body may fulfill 
    the reporting obligation of any of its subordinate local labor 
    organizations which have no assets, liabilities, receipts, or 
    disbursements, and which meet certain other conditions. It also sets 
    out a simplified format for the parent body to follow in reporting the 
    required information.
        This final rule makes several changes to the information required 
    to be reported by a parent national or international labor organization 
    to fulfill the reporting obligations of its local labor organizations. 
    First, this rule eliminates the requirement to report the location in 
    which the local labor organization is chartered to operate. The 
    requirement to report this information in Forms LM-2/3/4 was eliminated 
    when those forms were revised on December 21, 1993 (58 FR 67594). This 
    change will therefore make the reporting requirement for the simplified 
    format the same as the requirement for Forms LM-2/3/4 with regard to 
    the reporting of charter location.
        In addition, this rule eliminates the requirement that the 
    simplified reporting format be submitted in duplicate. This change will 
    also make the report filing requirement uniform with Forms LM-2/3/4.
        This rule also eliminates the requirement to report the names and 
    titles of all officers of the local labor organizations for which the 
    parent body files reports under 29 CFR 403.4(b). Only the names and 
    titles of the president and treasurer, or corresponding principal 
    officers, will have to be reported. This will make the simplified 
    format reporting requirement the same as the requirements for Form LM-4 
    with regard to the reporting of officers.
        Finally, this rule changes the regulations so that the information 
    reported by parent national and international unions on behalf of their 
    local labor organizations will have to be submitted on letter-size 
    paper. Forms LM-2/3/4 are letter-size, and the instructions for those 
    forms provide that any attached additional sheets should be letter-
    size. This change will, therefore, make the simplified format reports 
    the same size as Forms LM-2/3/4, and will facilitate the processing and 
    scanning of the reports.
    
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        The changes made by this rule will be effective January 1, 2000. 
    Thus, labor organizations will file the new reporting forms and format 
    for fiscal years beginning on and after January 1, 2000.
    
    Publication in Final
    
        The undersigned has determined that this rulemaking need not be 
    published as a proposed rule, as generally required by the 
    Administrative Procedure Act (APA), 5 U.S.C. 553. This rulemaking makes 
    technical and nonsubstantive amendments to facilitate wider 
    availability of public information, and imposes no additional burden on 
    the public. Consequently, there is good cause for finding that notice 
    and public procedure is unnecessary and contrary to the public 
    interest, pursuant to section 553(b)(B) of the APA.
    
    Effective Date
    
        The undersigned has determined that good cause exists for waiving 
    the customary requirement for delay in the effective date of a final 
    rule for 30 days following its publication since this rule is technical 
    and nonsubstantive. Therefore, these amendments shall be effective 
    January 1, 2000. See 5 U.S.C. 553(d).
    
    Administrative Requirements
    
    A. Executive Order 12866
    
        The Department of Labor has determined that this rule is not a 
    significant regulatory action as defined in section 3(f) of Executive 
    Order 12866 in that it will not (1) have an annual effect on the 
    economy of $100 million or more, or adversely affect in a material way 
    the economy, a sector of the economy, productivity, competition, jobs, 
    the environment, public health or safety, or State, local, or tribal 
    governments or communities, (2) create a serious inconsistency or 
    otherwise interfere with an action taken or planned by another agency, 
    (3) materially alter the budgetary impact of entitlements, grants, user 
    fees, or loan programs or the rights and obligations of recipients 
    thereof, or (4) raise novel legal or policy issues arising out of legal 
    mandates, the President's priorities, or the principles set forth in 
    Executive Order 12866.
    
    B. Regulatory Flexibility Act
    
        Because a notice of proposed rulemaking is not required for this 
    rule under 5 U.S.C. 553(b), the requirements of the Regulatory 
    Flexibility Act, 5 U.S.C. 601 et seq., pertaining to regulatory 
    flexibility analysis do not apply. See 5 U.S.C. 601(2). Therefore, a 
    regulatory flexibility analysis is not required.
    
    C. Paperwork Reduction Act
    
        This rule contains no additional information collection 
    requirements. The information collection requirements in the 
    regulations to which this rule makes technical amendments have been 
    approved by the Office of Management and Budget (OMB control number 
    1215-0188).
    
    D. Small Business Regulatory Enforcement Fairness Act
    
        The Department has determined that this final rule is not a ``major 
    rule'' requiring prior approval by the Congress and the President 
    pursuant to the Small Business Regulatory Enforcement Fairness Act of 
    1996 (5 U.S.C. 804), because it is not likely to result in (1) an 
    annual effect on the economy of $100 million or more, (2) a major 
    increase in costs or prices for consumers, individual industries, 
    Federal, State, or local government agencies, or geographic regions, or 
    (3) significant adverse effects on competition, employment, investment, 
    productivity, innovation, or the ability of United States-based 
    enterprises to compete with foreign-based enterprises in domestic and 
    export markets.
        Further, since the Department has determined, for good cause, that 
    publication of a proposed rule and solicitation of comments on this 
    rule is not necessary, under 5 U.S.C. 808(2), this final rule is 
    effective immediately upon publication as stated previously in this 
    notice.
    
    E. Unfunded Mandates Reform Act
    
        For purposes of section 2 of the Unfunded Mandates Reform Act of 
    1995, 2 U.S.C. 1532, as well as Executive Order 12875 (58 FR 58093, 
    October 28, 1993), this rule does not include any federal mandate that 
    may result in increased expenditures by State, local and tribal 
    governments, or increased expenditures by the private sector of more 
    than $100 million.
    
    F. Federalism
    
        The Department has reviewed this rule in accordance with Executive 
    Order 13132 regarding federalism, and has determined that it does not 
    have ``federalism implications.'' The rule does not ``have substantial 
    direct effects on the States, on the relationship between the national 
    government and the States, or on the distribution of power and 
    responsibilities among the various levels of government.''
    
    List of Subjects in 29 CFR Part 403
    
        Labor unions, Reporting and recordkeeping requirements.
    
    Adoption of Amendments of Regulations
    
        In consideration of the foregoing, the Office of Labor-Management 
    Standards, Employment Standards Administration, Department of Labor 
    hereby amends Chapter IV of title 29 of the Code of Federal Regulations 
    as follows.
    
    CHAPTER IV--OFFICE OF LABOR-MANAGEMENT STANDARDS, DEPARTMENT OF LABOR
    
    PART 403--LABOR ORGANIZATION ANNUAL FINANCIAL REPORTS
    
        1. The authority citation for part 403 continues to read as 
    follows:
    
        Authority: Secs. 201, 207, 208, 301, 73 Stat. 524, 529, 530 (29 
    U.S.C. 431, 437, 438, 461); Secretary's Order No. 5-96 (62 FR 107, 
    January 2, 1997).
    
        2. Section 403.4(b) is revised to read as follows:
    
    
    Sec. 403.4  Simplified annual reports for smaller labor organizations.
    
    * * * * *
        (b) A local labor organization not in trusteeship, which has no 
    assets, no liabilities, no receipts and no disbursements during the 
    period covered by the annual report of the national organization with 
    which it is affiliated need not file the annual report required by 
    Sec. 403.2 if the following conditions are met:
        (1) It is governed by a uniform constitution and bylaws filed on 
    its behalf pursuant to Sec. 402.3(b) of this chapter, and does not have 
    governing rules of its own;
        (2) Its members are subject to uniform fees and dues applicable to 
    all members of the local labor organizations for which such simplified 
    reports are submitted;
        (3) The national organization with which it is affiliated assumes 
    responsibility for the accuracy of, and submits with its annual report, 
    a separate letter-size sheet for each local labor organization 
    containing the following information with respect to each local 
    organization in the format illustrated below as part of this 
    regulation:
        (i) The name and designation number or other identifying 
    information;
        (ii) The file number which the Office of Labor-Management Standards 
    has assigned to it;
        (iii) The mailing address;
        (iv) The beginning and ending date of the reporting period which 
    must be the same as that of the report for the national organization;
        (v) The names and titles of the president and treasurer or
    
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    corresponding principal officers as of the end of the reporting period;
        (4) At least thirty days prior to first submitting simplified 
    annual reports in accordance with this section, the national 
    organization notifies the Office of Labor-Management Standards in 
    writing of its intent to begin submitting simplified annual reports for 
    affiliated local labor organizations;
        (5) The national organization files the terminal report required by 
    29 CFR 403.5(a) on Form LM-3 or LM-4, as may be appropriate, clearly 
    labeled on the form as a terminal report, for any local labor 
    organization which has lost its identity through merger, consolidation, 
    or otherwise if the national organization filed a simplified annual 
    report on behalf of the local labor organization for its last reporting 
    period; and
        (6) The national organization with which it is affiliated assumes 
    responsibility for the accuracy of, and submits with its annual report 
    and the simplified annual reports for the affiliated local labor 
    organizations, the following certification properly completed and 
    signed by the president and treasurer of the national organization:
    
    Certification
    
        We, the undersigned, duly authorized officers of [name of 
    national organization], hereby certify that the local labor 
    organizations individually listed on the attached documents come 
    within the purview of 29 CFR 403.4(b) for the reporting period from 
    [beginning date of national organization's fiscal year] through 
    [ending date of national organization's fiscal year], namely:
        (1) they are local labor organizations; (2) they are not in 
    trusteeship; (3) they have no assets, liabilities, receipts, or 
    disbursements; (4) they are governed by a uniform constitution and 
    bylaws, and fifty copies of the most recent uniform constitution and 
    bylaws have been filed with the Office of Labor-Management 
    Standards; (5) they have no governing rules of their own; and (6) 
    they are subject to the following uniform schedule of fees and dues: 
    [specify schedule for dues, initiation fees, fees required from 
    transfer members, and work permit fees, as applicable].
        Each document attached contains the specific information called 
    for in 29 CFR 403.4(b)(3)(i)-(vi), namely: (i) the local labor 
    organization's name and designation number; (ii) the file number 
    assigned the organization by the Office of Labor-Management 
    Standards; (iii) the local labor organization's mailing address; 
    (iv) the beginning and ending date of the reporting period; (v) the 
    names and titles of the president and treasurer or corresponding 
    principal officers of the local labor organization as of [the ending 
    date of the national organization's fiscal year].
        Furthermore, we certify that the terminal reports required by 29 
    CFR 403.4(b)(5) and 29 CFR 403.5(a) have been filed for any local 
    labor organizations which have lost their identity through merger, 
    consolidation, or otherwise on whose behalf a simplified annual 
    report was filed for the last reporting period.
    
    (Format for Simplified Annual Reporting)
    
    SIMPLIFIED ANNUAL REPORT
    
    Affiliation name:
    
    ----------------------------------------------------------------------
    Designation name and number:
    
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    Unit name:
    
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    Mailing address:
    
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    Name of person:
    
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    Number and street:
    
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    City, State and zip:
    
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    File number:
    
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    Period covered:
    
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    From      Through
    
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    Names and Titles of president and treasurer or corresponding 
    principal officers
    
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        For certification see NHQ file folder file number:
    
    President--------------------------------------------------------------
    Where signed-----------------------------------------------------------
    Date-------------------------------------------------------------------
    Treasurer--------------------------------------------------------------
    Where signed-----------------------------------------------------------
    Date-------------------------------------------------------------------
    
        Signed in Washington, D.C. this 15th day of December, 1999.
    Bernard E. Anderson,
    Assistant Secretary for Employment Standards.
    [FR Doc. 99-33044 Filed 12-20-99; 8:45 am]
    BILLING CODE 4510-46-P
    
    
    

Document Information

Effective Date:
1/1/2000
Published:
12/21/1999
Department:
Labor Department
Entry Type:
Rule
Action:
Final rule.
Document Number:
99-33044
Dates:
January 1, 2000.
Pages:
71622-71624 (3 pages)
RINs:
1215-AB29
PDF File:
99-33044.pdf
CFR: (2)
29 CFR 403.2
29 CFR 403.4