after the end of its fiscal year with the Office of Labor-Management and Welfare-Pension Reports, U.S. Department of Labor, Washington, D.C. 20210, on Form G-2 entitled "Federal Labor Organization Annual Report" in the detail required by the instructions accompanying such form and constituting a part thereof.

§ 204.10

2

Labor organizations filing under the LMRDA.

If a labor organization is also subject to the LMRDA, and is filing annual reports pursuant to section 201 of the Act, it is not required to file the report required by § 204.9.

§ 204.11 Labor organizations under trusteeship.

If a labor organization is in trusteeship on the date for filing the annual report, the organization which has assumed the trusteeship shall file the report required in § 204.9.

§ 204.12 Small labor organizations.

(a) If a labor organization, not in trusteeship, has gross annual receipts totaling less than $30,000 but $2,000 or more for its fiscal year, it may file the annual report required by § 204.9 in duplicate on Form G-3 entitled "Federal Labor Organization Simplified Annual Report" in accordance with the instructions accompanying such form and constituting a part thereof.

(b) If a labor organization, not in trusteeship, has gross annual receipts of less than $2,000 for its fiscal year, it may file the annual report required by § 204.9 in duplicate on Form G-4 entitled "Federal Labor Organization Abbreviated Annual Report" in accordance with the instructions accompanying such form and constituting a part thereof.

(c) 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 § 204.9 if the following conditions are met:

(1) It is governed by a uniform constitution and bylaws filed on its behalf pursuant to § 204.7(b) and the proviso in § 204.8, does not have governing rules of

2 Filed as part of the original document. Filed as part of the original document. Filed as part of the original document.

its own, and is not authorized to adopt such rules;

(2) Its members are subject to uniform fees and dues applicable to all members of the local labor organizations for which exemption is claimed; and

(3) The national organization with which it is affiliated assumes responsibility for the accuracy of, and submits with its annual report, Form G-2, a statement with as many copies as the Office of Labor-Management and WelfarePension Reports shall request, that the conditions of the exemption have been met for the specified local organizations for which exemption is claimed. This statement must be signed by the president and treasurer of the national labor organization and must contain the following additional information:

(i) If the national labor organization reports its dues in section B of Item 12 of its annual report, Form G-2, a statement of the required dues and fees of such exempt organizations, set forth in the same manner as prescribed in Item 12 of the Form G-2; and

(ii) With respect to each local labor organization for which exemption is claimed;

(a) The name and designation number or other identifying information.

(b) The file number (G-number) which the Office of Labor-Management and Welfare-Pension Reports has assigned to it.

(c) The mailing address.

(d) The city, county, and State where it is chartered to operate, if these have changed since last reported to the Office of Labor-Management and WelfarePension Reports.

(e) The names and titles of the offcers as of the end of the reporting period. REPORTING OF TRUSTEESHIPS

§ 204.13 Labor organizations filing under the LMRDA.

A labor organization subject to the LMRDA which has or assumes trusteeship over any subordinate labor organization subject to that Act as well as the order is not required to file reports under §§ 204.14-204.17, but must file the reports required under section 301 of the LMRDA and Part 408 of this title. § 204.14 Initial trusteeship report.

Except as provided in § 204.13, every labor organization which has or assumes trusteeship over any subordinate labor

organization subject to the order shall file with the Office of Labor-Management and Welfare-Pension Reports, U.S. Department of Labor, Washington, D.C. 20210, within 30 days after the imposition of any such trusteeship, a trusteeship report, signed by its president and treasurer or corresponding principal officers, as well as by the trustees of the subordinate labor organization. Such report shall be filed in duplicate on Form G-15 entitled "Federal Labor Organization Trusteeship Report" 5 in the detail required by the instructions accompanying such form and constituting a part thereof.

§ 204.15

Semiannual trusteeship report.

Every labor organization required to file a report under § 204.14 shall thereafter during the continuance of a trusteeship over the subordinate labor organization, file with the Office of LaborManagement and Welfare-Pension Reports a semiannual trusteeship report on Form G-15 in duplicate containing the information required by that form in accordance with the instructions therein relating to the semiannual trusteeship report. If during the period covered by the semiannual trusteeship report there was (a) a convention or other policy determining body to which the subordinate organization under trusteeship sent delegates or would have sent delegates if not in trusteeship, or (b) an election of officers of the labor organization assuming trusteeship, a report on Form G-15A entitled "Federal Labor Organization Schedule on Selection of Delegates and Officers"' shall be filed in duplicate with the Form G-15.

§ 204.16 Annual report.

During the continuance of a trusteeship, the organization which has assumed trusteeship over a subordinate labor organization subject to the order shall file with the Office of LaborManagement and Welfare-Pension Reports on behalf of the subordinate labor organization the annual report required by 204.9 on Form G-2 in duplicate signed by the president and treasurer or corresponding principal officers of the labor organization which has assumed such trusteeship. In addition, such labor organization shall file Form G-6, "Information and Signature Sheet for Financial Report of Federal Labor Organiza

Filed as part of the original document. Filed as part of the original document.

tion Under Trusteeship," in duplicate signed by the trustees of the subordinate labor organization.

§ 204.17 Terminal trusteeship information and financial reports.

Each labor organization which has assumed trusteeship over a subordinate labor organization subject to the order shall file within 90 days after the termination of such trusteeship a report in duplicate on Form G-16 entitled "Federal Labor Organization Terminal Trusteeship Information Report" " in the detail required by the instructions accompanying such form and constituting a part thereof. The organization submitting the terminal trusteeship information report must also file at the same time on behalf of the subordinate labor organization a final financial report in duplicate for the organization under trusteeship on Forms G-2 and G-6, in conformance with the requirements of §§ 204.9 and 204.16, covering the period from the beginning of the fiscal year through the termination date of the trusteeship.

MISCELLANEOUS PROVISIONS RELATING TO

REPORTING REQUIREMENTS

§ 204.18 Fiscal year.

or

As used in this subpart the term "fiscal year" means the calendar year, other period of 12-consecutive-calendar months, on the basis of which financial accounts are kept by a labor organization reporting under this subpart. Where a labor organization designates a new fiscal year prior to the expiration of a previously established fiscal year, the resultant period of less than 12consecutive-calendar months, and thereafter the newly established fiscal year, shall in that order each constitute a fiscal year for purposes of the reports required by this subpart.

§ 204.19 Initial annual report.

(a) The initial annual report of any labor organization whose current fiscal year ends prior to August 1, 1970, shall be filed within 90 days after the end of its next fiscal year.

(b) A labor organization which is subject to the order for only a portion of its fiscal year because the effective date of the order occurred during such fiscal year or because the labor organization otherwise first becomes subject to the

7 Filed as part of the original document. 8 Filed as part of the original document.

order during such fiscal year, may at its option consider such portion as the entire fiscal year in filing the annual report required under § 204.9 or § 204.12. § 204.20 Terminal report.

Any labor organization required to file a report under the provisions of this subpart, which during its fiscal year loses its identity as a reporting labor organization through merger, consolidation, or otherwise, shall within 30 days after such loss, file a terminal report in duplicate with the Office of Labor-Management and Welfare-Pension Reports on Form G-2, Form G-3, or Form G-4, as may be appropriate under § 204.9 or § 204.12, signed by the persons who were the president and treasurer or corresponding principal officers of the labor organization immediately prior to its loss of reporting identity. For the purpose of such terminal report the fiscal year shall be considered to be the period from the beginning of the labor organization's fiscal year to the date of its loss of reporting identity.

§ 204.21 Effect of acknowledgment and filing by the Office of Labor-Management and Welfare-Pension Reports. Acknowledgment by the Office of Labor-Management and WelfarePension Reports of the receipt of the reports and documents submitted for filing under this subpart is intended solely to inform the sender of the receipt thereof. Neither such acknowledgment nor the filing of such reports and documents by the Office of Labor-Management and Welfare-Pension Reports constitutes express or implied approval thereof or in any manner indicates that the content of any such report or document fulfills the reporting or other requirements of the order, or of the regulations in this subpart applicable thereto.

§ 204.22 Personal responsibility of signatories of reports.

Each individual required to sign any report under this subpart shall be personally responsible for the filing of such report and for any statement contained therein which he knows to be false. Penalties for filing false reports are provided in 18 U.S.C. 1001.

furnish or otherwise make available to all its members the information required to be contained in such report and shall furnish or otherwise make available to every member a copy of its constitution and bylaws. Every labor organization and its officers shall be under a duty to permit any member for just cause to examine any books, records, and accounts necessary to verify such report and constitution and bylaws.

§ 204.24 Maintenance and retention of records.

Every labor organization required to file any report under this subpart shall maintain records on the matters required to be reported which will provide in sufficient detail the necessary basic information and data from which the documents filed with the Office of Labor-Management and Welfare-Pension Reports may be verified, explained or clarified, and checked for accuracy and completeness. This includes vouchers, worksheets, receipts, and applicable resolutions (including any such records in existence on the date the order became effective). Every labor organization shall keep such records available for examination for a period of not less than 5 years after the filing of the report. § 204.25 Examination and copying of reports required by this subpart. Examination of any report or other document filed as required by this subpart, and the furnishing by the Office of Labor-Management and Welfare-Pension Reports of copies thereof to any person requesting them, shall be governed by Part 70 of this title.

§ 204.27 Prohibited acts relating to subordinate body under trusteeship.

During any period when a subordinate body of a labor organization is in trusteeship, (a) the votes of delegates or other representatives from such body in any convention or election of officers of the labor organization shall not be counted unless the representatives have been chosen by secret ballot in an election in which all the members in good standing of such subordinate body were eligible to participate; and (b) no current receipts or other funds of the subordinate body except the normal per capita tax and assessments payable by subordinate bodies not in trusteeship shall be transferred directly or indirectly to the labor organization which has imposed the trusteeship: Provided, however, That nothing contained in this section shall prevent the distribution of the assets of a labor organization in accordance with its constitution and bylaws upon the bona fide dissolution thereof. § 204.28 Presumption of validity.

In any proceeding involving § 204.26, a trusteeship established by a labor organization in conformity with the procedural requirements of its constitution and bylaws and authorized or ratified after a fair hearing either before the executive board or before such other body as may be provided in accordance with its constitution and bylaws shall be presumed valid for a period of 18 months from the date of its establishment and shall not be subject to attack during such period except upon clear and convincing proof that the trusteeship was not established or maintained in good faith for purposes allowable under § 204.26. After the expiration of 18 months the trusteeship shall be presumed invalid in any such proceeding, unless the labor organization shall show by clear and convincing proof that the continuation of the trusteeship is necessary for a purpose allowable under § 204.26.

such standards are relevant to elections held pursuant to the order.

ADDITIONAL PROVISIONS APPLICABLE

§ 204.30 Removal of elected officers.

When an elected officer of a local labor organization is charged with serious misconduct and the constitution and bylaws of such organization do not provide an adequate procedure meeting the standards of $ 417.2(e) of this title for removal of such officer, the labor organization shall follow a procedure which meets those standards. A labor organization which has adequate procedures in its constitution and bylaws shall follow those procedures.

§ 204.31 Maintenance of fiscal integrity in the conduct of the affairs of labor organizations.

The standards of fiduciary responsibility prescribed in section 501 (a) of the LMRDA are incorporated into this subpart by reference and made a part hereof.

§ 204.32

Provision for accounting and financial controls.

Every labor organization shall provide accounting and financial controls necessary to assure the maintenance of fiscal integrity.

§ 204.33 Prohibition of conflicts of interest.

(a) No officer or agent of a labor organization shall, directly or indirectly through his spouse, minor child, or otherwise (1) have or acquire any pecuniary or personal interest which would conflict with his fiduciary obligation to such labor organization, or (2) engage in any business or financial transaction which conflicts with his fiduciary obligation.

(b) Actions prohibited by paragraph (a) of this section include, but are not limited to, buying from, selling, or leasing directly or indirectly to, or otherwise dealing with the labor organization, its affiliates, subsidiaries, or trusts in which the labor organization is interested, or having an interest in a business any part of which consists of such dealings, except bona fide investments of the kind exempted from reporting under section 202(b) of the LMRDA. The receipt of salaries and reimbursed expenses for services actually performed or expenses actually incurred in carrying out the duties of the officer or agent is not prohibited.

§ 204.34 Loans to officers or employees.

No labor organization shall directly or indirectly make any loan to any officer or employee of such organization which results in a total indebtedness on the part of such officer or employee to the labor organization in excess of $2,000. § 204.35 Bonding requirements.

Every officer, agent, shop steward, or other representative of any labor organization subject to the order (other than a labor organization whose property and annual financial receipts do not exceed $5,000 in value), or of a trust in which a labor organization is interested, who handles funds or other property thereof shall be bonded in accordance with the principles of section 502(a) of the LMRDA. In enforcing this requirement the Assistant Secretary will be guided by the interpretations and policies followed by the Department of Labor in applying the provisions of section 502(a) of the LMRDA.

§ 204.36 Prohibitions against certain persons holding office or employ

ment.

The prohibitions against holding office or employment in a labor organization contained in section 504(a) of the LMRDA are incorporated into this subpart by reference and made a part hereof. The prohibitions shall also be applicable to any person who has been convicted of, or who has served any part of a prison term resulting from his conviction of, violating 18 U.S.C. 1001 by making a false statement in any report required to be filed pursuant to this subpart: Provided, however, That the duties and responsibilities of the Board of Parole of the U.S. Department of Justice under section 504 (a) of the LMRDA shall be assumed under this section by the Assistant Secretary or such other person as he may designate for the purpose of determining whether it would not be contrary to the order and this section to permit a person barred from holding office or employment to hold such office or employment.

§ 204.37 Prohibition of certain discipline.

No labor organization or any officer, agent, shop steward, or other representative or any employee thereof shall fine, suspend, expel, or otherwise discipline any of its members for exercising any right to which he is entitled under the provisions of the order or of this chapter.

§ 204.38 Deprivation of rights under the order by violence or threat of violence.

No labor organization or any officer, agent, shop steward, or other representative or any employee thereof shall use, conspire to use, or threaten to use force or violence to restrain, coerce, or intimidate, or attempt to restrain, coerce, or intimidate any member of a labor organization for the purpose of interfering with or preventing the exercise of any right to which he is entitled under the provisions of the order or this chapter. Subpart B-Proceedings for Enforcing Standards of Conduct

§ 204.51 Inspection of records and questioning.

In connection with such investigation an Area Administrator or his representative may inspect such records and question such persons as he may deem necessary to enable him to determine the relevant facts. Every labor organization, its officers, employees, agents, or representatives shall cooperate fully in any investigation and shall testify and produce the records or other documents requested in connection with the investigation. This section shall be enforced in accordance with the procedures in §§ 204.66 through 204.73. § 204.52

Report of investigation.

The Area Administrator's report of investigation (except those relating to complaints under § 204.2, Bill of Rights of members of labor organizations) shall be submitted through the Regional Administrator to the Director, who may report to interested persons concerning any matter which he deems to be appropriate as a result of such an investigation.