Labor Organization Annual Financial Reports; Final Rule [Rules and Regulations] [12/21/1999]
Labor Organization Annual Financial Reports; Final Rule [12/21/1999]
Volume 64, Number 244, Page 71621-71624
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Part VI
Department of Labor
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Office of Labor-Management Standards
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29 CFR Part 403
Labor Organization Annual Financial Reports; Final Rule
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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.
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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:
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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
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