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Labor Organization Officer and Employee Report, Form LM–30; Final Rule

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Labor Organization Officer and Employee Report, Form LM–30; Final Rule Monday, July 2, 2007 Part II Department of Labor Office of Labor–Management Standards 29 CFR Part 404 Labor Organization Officer and Employee Report, Form LM–30; Final Rule VerDate Aug<31>2005 21:41 Jun 29, 2007 Jkt 211001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\02JYR2.SGM 02JYR2 sroberts on PROD1PC70 with RULES 36106 Federal Register / Vol. 72, No. 126 / Monday, July 2, 2007 / Rules and Regulations DEPARTMENT OF LABOR A. Statutory Authority Business With an Employer Whose B. Departmental Authorization Employees are Represented by the Office of Labor-Management C. Background to and Overview of Rule Official’s Union or the Union it is Standards 1. The Reasons for Today’s Revisions of the Actively Seeking to Represent Form LM–30 K. Why Payments and Other Financial 2. Legislative History 29 CFR Part 404 Benefits Received From Section 3(l) II. Discussion of Comments Received on Trusts and Service Providers to Such RIN 1215–AB49 Proposed Rule and Department’s Trusts Must Be Reported Response 1. Alleged Procedural Shortcoming Labor Organization Officer and A. Why the Changes to the Form Are 2. Routine Exceptions Employee Report, Form LM–30 Needed Now 3. Relationship With Other Statutes B. Why the Department Is Not Presently 4. Trusts as Employers and Businesses AGENCY: Office of Labor-Management Requiring Unions To Notify Their L. When Payments and Other Financial Standards, Employment Standards Officers and Employees (‘‘Officials’’) Benefits Received From a Union Other Administration, Department of Labor. About Their Annual Reporting Than an Official’s Own Union Must be Obligations Reported ACTION: Final rule. C. Why the De Minimis Exemption From M. How the Proposed Definitions Have Reporting Insubstantial Gifts and Other Been Clarified To Ease a Filer’s SUMMARY: The Employment Standards Financial Benefits Has Been Simplified Completion of the Form LM–30 Administration’s (‘‘ESA’’) Office of and Subjected to a $250 Limit, With an 1. Definitions Adopted by Today’s Rule Labor-Management Standards Exclusion for Gifts Valued at $20 or Less 2. Other Issues Related to Definitions (‘‘OLMS’’) of the Department of Labor and Certain Widely-Attended Gatherings N. Details Relating To Proposed and (‘‘Department’’) publishes this Final D. Why Reporting Exceptions Permitted Revised Form and Instructions Rule to revise the Form LM–30, Labor Under the Old Rule Have Been 1. Comparison of the ‘‘Old’’ and Proposed Organization Officer and Employee Eliminated or Modified To Provide More Forms Report, its instructions, and related Information to Union Members 2. Comments on Proposed Form 1. Regular Course of Business Exception 3. Completion of the Revised Form provisions in the Department’s 2. Bona Fide Employee Exception for regulations. The Form LM–30 III. Regulatory Procedures Transactions With an Employer Whose A. Executive Order 12866 implements section 202 of the Labor- Employees the Official’s Union B. Small Business Regulatory Enforcement Management Reporting and Disclosure Represents or Is Actively Seeking To Fairness Act Act of 1959 (‘‘LMRDA’’ or ‘‘Act’’), 29 Represent C. Unfunded Mandates Reform U.S.C. 432, whose purpose is to require 3. Exception for Bona Fide Loans or D. Executive Order 13132 (Federalism) officers and employees of labor Interest From a Banking Institution E. Regulatory Flexibility Act organizations to report specified 4. Exceptions Relating to Stocks F. Paperwork Reduction Act financial transactions and holdings to 5. Revision of Special Report Language G. Executive Order 13045 (Protection of E. Why Union Officials, as a General Rule, Children From Environmental Health effect public disclosure of any possible Must Report Payments Received as conflicts between their personal Risks and Safety Risks) Members of a Company’s Board of H. Executive Order 13175 (Consultation financial interests and their duty to the Directors and Coordination With Indian Tribal labor union and its members. This rule F. Why Officers of International, National, Governments) clarifies the Form LM–30 and its and Intermediate Labor Unions, in I. Executive Order 12630 (Governmental instructions by explaining key terms Addition to Their Obligation to Report Actions and Interference With and providing examples of the financial Payments and Other Financial Benefits Constitutionally Protected Property matters that must be reported, Received From Businesses and Rights) eliminates or modifies administrative Employers That Have a Direct J. Executive Order 12988 (Civil Justice Relationship With the Component of the Reform) exceptions in the old Form LM–30 that Union to Which They are Elected or impeded the full disclosure of financial K. Environmental Impact Assessment Appointed, Must Also Report Payments L. Executive Order 13211 (Actions matters that constitute conflicts, or and Other Financial Benefits Received Concerning Regulations That potential conflicts, of interest, and From Businesses and Employers Whose Significantly Affect Energy Supply, improves the usability of the reports by Relationship is With a Subordinate Body Distribution, or Use) union members and the public. of Their Union IV. Text of Final Rule G. Why Union Officials Must Report DATES: Effective Date: This rule will be Payments Under Union—Leave and No- Appendix effective August 16, 2007. Docking Practices Subject to an Note: Throughout this document, the FOR FURTHER INFORMATION CONTACT: Kay Exception for Payments of 250 Hours or Department refers to various statutory H. Oshel, Director, Office of Policy, Less Per Year Made in Accordance with provisions as ‘‘section ll.’’ All such Reports, and Disclosure, Office of Labor- a Collective Bargaining Agreement references, unless otherwise noted, are to Management Standards, U.S. H. What Payments and Other Financial Title 29 of the U.S. Code. Further, unless Department of Labor, 200 Constitution Benefits, Received From an Employer or otherwise noted, all the sections are part of Avenue, NW., Room N–5609, Business Whose Employees are not the Labor-Management Reporting and Represented by the Union and Which Disclosure Act of 1959, which is set forth in Washington, DC 20210, olms- Does Not Conduct Business With the Chapter 11 of Title 29, 29 U.S.C. 401–531. [email protected], (202) 693–1233 (this is Official’s Union, Must be Reported Following is a list of the most frequently not a toll-free number). Individuals with I. When is a Union ‘‘Actively Seeking To cited LMRDA provisions in this document hearing impairments may call 1–800– Represent’’ Employees, Thereby with corresponding citations to the U.S. 877–8339 (TTY/TDD). Triggering a Union Official’s Obligation Code: section 3(l), 29 U.S.C. 402(l); 201, 29 SUPPLEMENTARY INFORMATION: An outline To Report Payments and Other Financial U.S.C. 431; section 202, 29 U.S.C. 432; and of this information and a note regarding Benefits Received From the Employer section 203, 29 U.S.C. 433. The only other That is the Subject of the Organizing provision of the U.S. Code frequently referred the references to statutory provisions in Drive to in the document by the section number in this document follow: J. How Union Officials Will Determine the public law in which it was enacted is Whether an Entity From Which They ‘‘section 302(c),’’ a reference to a provision of Table of Contents Receive a Payment or Other Financial the Labor Management Relations Act, as I. Background Benefit Does a ‘‘A Substantial Part’’ of its amended, 29 U.S.C. 141–188. A reference to VerDate Aug<31>2005 21:41 Jun 29, 2007 Jkt 211001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\02JYR2.SGM 02JYR2 sroberts on PROD1PC70 with RULES Federal Register / Vol. 72, No. 126 / Monday, July 2, 2007 / Rules and Regulations 36107 section 302(c), 29 U.S.C. 186(c), appears in with monetary value (including reimbursed Organization Officer and Employee the text of section 202(a)(6) of the LMRDA, expenses) which he or his spouse or minor Report based on its review of public 29 U.S.C. 432(a)(6). child directly or indirectly derived from, a comments received in response to its business any part of which consists of buying Notice of Proposed Rulemaking I. Background from, or selling or leasing directly or indirectly to, or otherwise dealing with such (‘‘NPRM’’), 70 FR 51166 (Aug. 29, 2005). A. Statutory Authority labor organization; The Form LM–30 is used by officers and employees of labor organizations subject Section 208 of the LMRDA states in (5) Any direct or indirect business transaction or arrangement between him or to the LMRDA. Section 202 of the Act part: his spouse or minor child and any employer requires public disclosure of certain The [Department] shall have authority to whose employees his organization represents financial interests held, income issue, amend and rescind rules and or is actively seeking to represent, except received, and transactions engaged in by work performed and payments and benefits regulations prescribing the form and labor organization officers and publication of reports required to be filed received as a bona fide employee of such under this title and such other reasonable employer and except purchases and sales of employees (generally referred to herein rules and regulations (including rules goods or services in the regular course of as ‘‘union officials’’ or ‘‘officials’’) and prescribing reports concerning trusts in business at prices generally available to any their spouses and minor children. which a labor organization is interested) as employee of such employer; and Subject to exclusions, these interests, he may find necessary to prevent the (6) Any payment of money or other thing incomes, and transactions include: circumvention or evasion of such reporting of value (including reimbursed expenses) 1. Payments or benefits from, or requirements. which he or his spouse or minor child interests in, an employer whose received directly or indirectly from any 29 U.S.C.
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