ecutive board is empowered to act for the union between conventions and is empowered to make such interim constitutional changes as are necessary to carry out the provisions of this law. (For text of Sec. 404 see page 191; for legislative history, see Senator Goldwater's statement, page 114.) What Are the Fiduciary Responsibilities of Union Officers? Union officers, agents, shop stewards and other union representatives who "occupy positions of trust”, union officials who hold union money and property solely for the benefit of the union and its members, and union officers who handle employee-benefit trust funds, must manage, invest and spend this money in accordance with the union constitution and by-laws. They must refrain from dealing with the union as an adverse party or in behalf of an adverse party in any matter connected with their duties. They must refrain from holding or acquiring any pecuniary or personal interest which conflicts with the interests of the union. They must account to the union for any profit received by them in whatever capacity in connection with transactions conducted by them or under their direction on behalf of the union. Union officers are held fiduciaries under the new law despite a "general exculpatory provision in the union's constitution or a general exculpatory resolution which attempts to relieve any such person from liability." (For text of Sec. 501 (a) see page 191; for legislative history, see statements of Senators Morse, Kennedy and Goldwater, page 115.) How Is the Fiduciary Provision Enforced? After a request has been made by a union member to the union for it to seek restitution from a union officer who has breached his trust, a reasonable time must elapse before the union member can himself sue in court. After such a reasonable time has passed, the union member may sue the offender in any state or federal court. However, permission of the court must first be obtained. The court cannot take the case except for good cause shown which cause may be shown ex parte (without notice to the union or the officer concerned). The trial judge is given authority to allot a reasonable part of the amount recovered to pay the attorney's fees and to compensate the union member for his expenses in connection with the suit. (For text of Sec. 501 (b) see page 191.) What Penalty Is Provided for Embezzlement of Union Any "person" who embezzles any of the moneys, property or other assets of a union of which he is an officer, or by which he is employed, is subject to not more than a $10,000 fine, not more than five years in jail, or both. (For text of Sec. 501 (c) see page 192.) What Bonds Must Union Officers Have? In unions whose property and annual receipts exceed $5,000, every union officer, agent, shop steward, representative or employee who handles union funds must be bonded. The bond must be for an amount not less than 10 per cent of the funds handled by him during the prior fiscal year, but no more than $500,000. Each bond must be individual or schedule in form and must have as surety a company that is accepted as surety on federal bonds. Any person who is not bonded is forbidden to receive, handle, disburse, or otherwise exercise custody or control over the union funds. No bond can be placed through an agent or broker or with a surety company in which the union or any of its officers or employees have any direct or indirect interest. Any person who violates this section is subject to not more than a $10,000 fine, not more than one year in jail, or both. (For text of Sec. 502 see page 192; for legislative history, see pages 117-119.) What Loans or Payments to Union Officers or Employees Are Prohibited? No union can make any loans either directly or indirectly to any union officer or union employee which causes a total debt of more than $2000. No union either directly or indirectly can pay the fine of any union officer or employee convicted of any willful violation of the LandrumGriffin Act. Any person who willfully violates this section can be fined not more than $5000 or imprisoned for not more than one year, or both. (For text of Sec. 503 see page 192; for legislative history, see exchange between Senators Bush, Johnson and Kennedy, page 119.) Who Cannot Hold Union Office? Any person who is or has been a Communist Party member or who has been convicted of, or served any part of a prison term resulting from a conviction of robbery, bribery, extortion, embezzlement, grand larceny, burglary, arson, narcotics law violations, murder, rape, assault with intent to kill, assault which inflicts grievous bodily injury, a violation of the Reporting and Trusteeship provisions of the law or conspiracy to commit any such crimes, may not hold union office or serve as trustee, executive board member, business agent, manager, organizer or other union employee, except as a custodial or clerical employee of a union during or for five years after leaving the Communist party or for five years after conviction or after imprisonment. However, if citizenship rights have been fully restored prior to the five-year period or the Board of Parole of the United States determines that such person's service in the union capacity would not be contrary to the purposes of the Act, the disability is lifted. A hearing, however, must be held before this determination is made. Unions and their officers are prohibited from knowingly permitting a person under such a disability to hold a position contrary to this section. (For text of Sec. 504(a) see page 193; for legislative history, see exchange between Senators Magnuson and Kennedy, page 120, and excerpt from Senate Committee Report No. 1684, page 121.) For willful violation this section imposes a fine of not more than $10,000, nor more than one year in jail, or both. The period of disability from conviction in this provision runs from the date of the judgment of the trial court or the date of the final sustaining of such judgment on appeal, regardless of whether such conviction occurred before or after September 14, 1959. (For text of Sec. 504 (c) see page 193; for legislative history, see exchange between Senators Langer and Allott, page 122.) How Are Union Rights Under Other Federal and State In order to avoid the "preemption by inference" of state laws the Landrum-Griffin Act incorporates two sections reserving existing state powers except where the new law specifically provides otherwise. (For text of Sections 603 and 604 see pages 196 and 197.) How May a Union Be Served with Legal Process? Many unions are unincorporated bodies and therefore not normally suable as a single entity. For purposes of the new law, however, service of a summons, subpena, or other legal process on an officer or agent of a union accomplishes service on the union. (For text of Sec. 605 see page 197.) What Additional Provisions of the Law Affect Unions? In addition to those sections of the law discussed in this chapter, most of the matters referred to in Chapter IV and V, dealing with employers and employees and the law, affect unions and therefore should be read by anyone interested in a comprehensive study of "unions and the law." VII LEGISLATIVE HISTORY A FULL UNDERSTANDING of the meaning of any law is aided by reviewing the statements of legislators concerning its provisions. There is, of course, no substitute for a careful reading of the language of the law itself. However, when an interpretation of the words is given by a legislator during the time when the statute is under consideration, great weight must be given to that interpretation. The Landrum-Griffin Act of 1959 is the product of the work of Congress extending continuously over a period of seventeen months beginning in June, 1958. Where provisions of the Act are identical with language in the original Kennedy-Ives bill of 1958, statements made in 1958 are here included as evidence of legislative intent. General statements are omitted as are statements of opinion by members of Congress not directly involved in the drafting of the Act. DEFINITIONS SEC. 3(b) "COMMERCE" Senator Smith (R.-N.J.) Cong. Rec. June 14, 1958, page 11184 MR. SMITH of New Jersey. Let me state the purpose of the amendment. The purpose of this amendment is to include as "commerce" for purposes of the bill all commerce included in the definition in the committee print, together with certain commerce which that definition does not now cover. This definition will clearly include commerce to and from such places as Puerto Rico, the Canal Zone, outer Continental Shelf lands, and other possessions which are neither among the 48 States nor organized Territories like Hawaii and Alaska. Commerce between a State and any place outside thereof, as used in the amendment, would cover also situations where commerce originating in a State-for example, voyages of fishing fleets-goes out to the high seas and comes back to the same State without going to another State or a foreign country. The definition in committee print does not appear to cover this kind of com merce. The language of the amendment is based upon the "commerce" defini |