[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



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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.

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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